The use of external support and the benefits of the adoption of resource efficiency practices: an empirical analysis of European SMEs

The purpose of this paper is to examine the relationship between the use of external support for the adoption of resource efficiency practices and the extent and profitability of this adoption by Small and Medium-sized Enterprises (SMEs). We distinguish between direct financial support and indirect support in the form of advice and consulting services related to the adoption of resource efficiency practices. We use data from the 2013 FLASH EUROBAROMETER survey of a sample of European manufacturing SMEs. Our results show that the effects of the adoption of resource efficiency practices on production costs are higher among firms that receive external financial support for adoption, as well as among those firms that adopt a wide set of process reengineering measures for resource efficiency. However, external technical and business advice plays an important role in the extent of adoption of different resource efficiency measures.