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Micro-SMEs ‘green’ their business: how to increase the likelihood of micro-SMEs applying for subsidy under the Subsidy scheme Improving Sustainability of SMEs (SVM)

General Information

Project description

An online experiment investigated how behavioural techniques could be used to increase the likelihood of companies with 2 to 10 employees applying for assistance under the Subsidy Scheme Improving Sustainability of SMEs (SVM ). The results show that an updated version of the website helps to clarify the subsidy. This effect is not reflected in the likelihood of these micro-SMEs actually applying for the subsidy.

Why this experiment was conducted: SVM scheme not being fully utilised
It is important that SMEs invest in sustainability to achieve the climate targets. Companies that are not subjected to the energy saving obligation can apply for the subsidy Improved Sustainability of SMEs (SVM). This subsidy entitles them to energy-saving advice from an energy consultant and supports in implementing energy-saving measures within their business. However, this subsidy was not being fully utilised.

Type of intervention: SVM website updated with behavioural techniques
The intervention consisted of changes to the Netherlands Enterprise Agency's website where the SVM subsidy can be applied for. The updated description of the information incorporated various behavioural techniques, such as clearly formulated target behaviour, a visual structure, step-by-step plan and simplified information.

Method used: RCT
Micro-SMEs were invited to fill in an online questionnaire in collaboration with panel agencies. In this questionnaire, respondents (n=176) answered questions on drivers and obstacles to make their company more sustainable as well as on their familiarity with the SVM scheme. The questionnaire also included an experiment. Respondents were randomly assigned to one of two groups:
• in the control group, they were shown the original description of the SVM subsidy that appeared on the website of the Netherlands Enterprise Agency during the period of the study.
• in the experimental group, they were shown the updated version of the website incorporating the behavioural techniques.

They then rated the clarity of the information, the appeal of the SVM subsidy and the likelihood of them applying for subsidy under the SVM scheme. They did this by indicating the extent to which they agreed or disagreed with various statements.

Result obtained: updated website clearer and more appealing than original description
The experiment showed that respondents who read the version of the website that incorporated behavioural techniques had a better understanding of how to utilise the SVM scheme compared to those who read the original description (86% versus 74%). They also felt it was easier for them to understand how to apply for the subsidy (94% versus 72%). In addition, they rated the updated version of the website as more appealing (79% versus 69%). However, this does not directly translate into an increased likelihood of them applying for the SVM subsidy. Indeed, respondents in the intervention group were not more likely to apply for the SVM subsidy than respondents in the control group (both 38%).

Impact: understanding the barriers experienced by SMEs prompted modifications to the SVM scheme
The experiment shows that behavioural techniques enhance the clarity and appeal of the SVM subsidy. These insights were partially incorporated into the SVM page on the website of the Netherlands Enterprise Agency. These results might also have relevance for communication regarding other subsidies. Insight was also gained about micro-SMEs' drivers and obstacles to make their business more sustainable. This revealed that respondents were positive about subsidies for pursuing sustainability initiatives. In contrast, the majority lacked trust in the energy advisor (52%) and were sceptical about the usefulness of the advice given (67%). These could be reasons for the lack of interest in the SVM subsidy. These insights contributed to modifications in the scheme, including stricter requirements for energy consultants. At the same time these modifications make it difficult to attribute any possible actual difference in subsidy applications to the changes on the website.

Source: https://www.binnl.nl/home+-+en/knowledge/publications/bin+nl+publications/HandlerDownloadFiles.ashx?idnv=2719979

Detailed information

Final report: Is there a final report presenting the results and conclusions of this project?

Who is behind the project?

Institution: Netherlands Enterprise Agency
Team:

Project status:

Completed

Methods

Methodology: Field Experiment
Could you self-grade the strength of the evidence generated by this study?: 7

What is the project about?

Policy area(s): Economy, Small businesses
Topic(s): Consumption- Purchase behaviour, Decision-making

Date published:

3 October 2024

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