Plans to Practice
Plans to Practice
Plans to Practice
A practical analysis of Canadian SMEs sustainability gap between aspirations and reality
A practical analysis of Canadian SMEs sustainability gap between aspirations and reality
Project
Overview
Project
Overview
Project Overview
Research Leads
Research Leads
Morgan Bath
MDes Strategic Foresight and Innovation
OCAD University
morganbath@ocadu.ca
Yaw Sarkodie
MDes Strategic Foresight and Innovation
OCAD University
ysarkodie@ocadu.ca
Morgan Bath
MDes Strategic Foresight and Innovation
OCAD University
morganbath@ocadu.ca
Yaw Sarkodie
MDes Strategic Foresight and Innovation
OCAD University
ysarkodie@ocadu.ca
Morgan Bath
MDes Strategic Foresight and Innovation
OCAD University
morganbath@ocadu.ca
Yaw Sarkodie
MDes Strategic Foresight and Innovation
OCAD University
ysarkodie@ocadu.ca
Academic Advisor
Academic Advisor
Dr. Nabil Harfoush
Faculty of Design
OCAD University
nharfoush@ocadu.ca
Dr. Nabil Harfoush
Faculty of Design
OCAD University
nharfoush@ocadu.ca
Dr. Nabil Harfoush
Faculty of Design
OCAD University
nharfoush@ocadu.ca
As Strategic Foresight and Innovation graduate researchers at OCAD University, we’re investigating how Small and Medium-sized Enterprises (SMEs) – the backbone of Canada’s economy – can bridge the critical gap between sustainability ambitions and practical implementation. Our research delves deep into understanding how these vital enterprises, representing 99.8% of Canadian businesses, can build resilience across economic, environmental, social, and cultural dimensions while navigating an increasingly complex and disrupted world. Through this platform, we invite you to explore our journey of uncovering pathways to transform SMEs into catalysts for sustainable change, where business success is measured not just by profit, but by its positive impact on people, planet, and cultural vitality.
As Strategic Foresight and Innovation graduate researchers at OCAD University, we’re investigating how Small and Medium-sized Enterprises (SMEs) – the backbone of Canada’s economy – can bridge the critical gap between sustainability ambitions and practical implementation. Our research delves deep into understanding how these vital enterprises, representing 99.8% of Canadian businesses, can build resilience across economic, environmental, social, and cultural dimensions while navigating an increasingly complex and disrupted world. Through this platform, we invite you to explore our journey of uncovering pathways to transform SMEs into catalysts for sustainable change, where business success is measured not just by profit, but by its positive impact on people, planet, and cultural vitality.
As Strategic Foresight and Innovation graduate researchers at OCAD University, we’re investigating how Small and Medium-sized Enterprises (SMEs) – the backbone of Canada’s economy – can bridge the critical gap between sustainability ambitions and practical implementation. Our research delves deep into understanding how these vital enterprises, representing 99.8% of Canadian businesses, can build resilience across economic, environmental, social, and cultural dimensions while navigating an increasingly complex and disrupted world. Through this platform, we invite you to explore our journey of uncovering pathways to transform SMEs into catalysts for sustainable change, where business success is measured not just by profit, but by its positive impact on people, planet, and cultural vitality.
About the Project
About the Project
This Major Research Project was co-authored with Yaw Sarkodie-Mensah as part of our completion of the Master of Design in Strategic Foresight and Innovation at OCAD University. Over the course of a year, we interviewed 12 global sustainability experts and 11 Canadian SMEs to explore the question:
This Major Research Project was co-authored with Yaw Sarkodie-Mensah as part of our completion of the Master of Design in Strategic Foresight and Innovation at OCAD University. Over the course of a year, we interviewed 12 global sustainability experts and 11 Canadian SMEs to explore the question:
This Major Research Project was co-authored with Yaw Sarkodie-Mensah as part of our completion of the Master of Design in Strategic Foresight and Innovation at OCAD University. Over the course of a year, we interviewed 12 global sustainability experts and 11 Canadian SMEs to explore the question:
SMEs represent 99.8% of all businesses in Canada and are critical to the country’s social and economic resilience. Many of these businesses are values-driven and deeply rooted in their communities. Yet even when sustainability is a core part of their mission, systemic barriers—from resource limitations to external pressures—often prevent meaningful implementation.
Our research aimed to uncover the factors that stall progress, examine what resilience really looks like in this context, and provide actionable, systems-informed interventions that can help SMEs turn good intentions into measurable impact.
SMEs represent 99.8% of all businesses in Canada and are critical to the country’s social and economic resilience. Many of these businesses are values-driven and deeply rooted in their communities. Yet even when sustainability is a core part of their mission, systemic barriers—from resource limitations to external pressures—often prevent meaningful implementation.
Our research aimed to uncover the factors that stall progress, examine what resilience really looks like in this context, and provide actionable, systems-informed interventions that can help SMEs turn good intentions into measurable impact.
SMEs represent 99.8% of all businesses in Canada and are critical to the country’s social and economic resilience. Many of these businesses are values-driven and deeply rooted in their communities. Yet even when sustainability is a core part of their mission, systemic barriers—from resource limitations to external pressures—often prevent meaningful implementation.
Our research aimed to uncover the factors that stall progress, examine what resilience really looks like in this context, and provide actionable, systems-informed interventions that can help SMEs turn good intentions into measurable impact.
Methodology
Methodology
The research followed a three-phase approach to build a detailed understanding of the challenges and opportunities in SME sustainability:
The research followed a three-phase approach to build a detailed understanding of the challenges and opportunities in SME sustainability:
The research followed a three-phase approach to build a detailed understanding of the challenges and opportunities in SME sustainability:
Framing Our Understanding
This involved reviewing existing research on sustainability and resilience in SMEs, looking at implementation gaps, challenges, and success factors. It also included analyzing the SME system, how value flows within it, and the internal and external relationships that influence decisions. This phase established a theoretical and practical foundation.
Engaging the SME System
This phase involved talking directly to people within the SME system. This included: Anonymous Qualitative Surveys: A survey for SME workers and operators to get their perspectives on daily operations and implementation challenges. Although fewer responses were received than expected, the nine responses provided valuable qualitative insights. Expert Interviews: In-depth conversations with 12 sustainability and SME management specialists from various locations globally. These interviews explored challenges, external pressures, and structural barriers. SME Leader Interviews: Interviews with 11 business founders or leaders from different Canadian provinces. These focused on operational realities, leadership challenges, and barriers to integrating sustainability. The goal was to capture diverse perspectives beyond just theory. Participants were selected from businesses operating for over a year, across different levels, industries, and those actively pursuing sustainability or not.
Possibilities of Transition
This phase involved making sense of all the collected information. Synthesizing findings from the literature, case studies, and interviews to identify patterns, obstacles, and opportunities to move from sustainability intentions to practical actions. Exploring potential solutions or interventions and validating them by getting feedback from the participating SME leaders.
Framing Our Understanding
This involved reviewing existing research on sustainability and resilience in SMEs, looking at implementation gaps, challenges, and success factors. It also included analyzing the SME system, how value flows within it, and the internal and external relationships that influence decisions. This phase established a theoretical and practical foundation.
Engaging the SME System
This phase involved talking directly to people within the SME system. This included: Anonymous Qualitative Surveys: A survey for SME workers and operators to get their perspectives on daily operations and implementation challenges. Although fewer responses were received than expected, the nine responses provided valuable qualitative insights. Expert Interviews: In-depth conversations with 12 sustainability and SME management specialists from various locations globally. These interviews explored challenges, external pressures, and structural barriers. SME Leader Interviews: Interviews with 11 business founders or leaders from different Canadian provinces. These focused on operational realities, leadership challenges, and barriers to integrating sustainability. The goal was to capture diverse perspectives beyond just theory. Participants were selected from businesses operating for over a year, across different levels, industries, and those actively pursuing sustainability or not.
Possibilities of Transition
This phase involved making sense of all the collected information. Synthesizing findings from the literature, case studies, and interviews to identify patterns, obstacles, and opportunities to move from sustainability intentions to practical actions. Exploring potential solutions or interventions and validating them by getting feedback from the participating SME leaders.
Framing Our Understanding
This involved reviewing existing research on sustainability and resilience in SMEs, looking at implementation gaps, challenges, and success factors. It also included analyzing the SME system, how value flows within it, and the internal and external relationships that influence decisions. This phase established a theoretical and practical foundation.
Engaging the SME System
This phase involved talking directly to people within the SME system. This included: Anonymous Qualitative Surveys: A survey for SME workers and operators to get their perspectives on daily operations and implementation challenges. Although fewer responses were received than expected, the nine responses provided valuable qualitative insights. Expert Interviews: In-depth conversations with 12 sustainability and SME management specialists from various locations globally. These interviews explored challenges, external pressures, and structural barriers. SME Leader Interviews: Interviews with 11 business founders or leaders from different Canadian provinces. These focused on operational realities, leadership challenges, and barriers to integrating sustainability. The goal was to capture diverse perspectives beyond just theory. Participants were selected from businesses operating for over a year, across different levels, industries, and those actively pursuing sustainability or not.
Possibilities of Transition
This phase involved making sense of all the collected information. Synthesizing findings from the literature, case studies, and interviews to identify patterns, obstacles, and opportunities to move from sustainability intentions to practical actions. Exploring potential solutions or interventions and validating them by getting feedback from the participating SME leaders.
The overall methodology used both qualitative and semi-quantitative methods, including thematic coding of interview transcripts and pattern identification in survey responses.
The overall methodology used both qualitative and semi-quantitative methods, including thematic coding of interview transcripts and pattern identification in survey responses.
The overall methodology used both qualitative and semi-quantitative methods, including thematic coding of interview transcripts and pattern identification in survey responses.
Key Findings
Key Findings
Barriers
Barriers
The research confirmed that a gap exists between SME sustainability goals and actual implementation. It identified three critical implementation thresholds that SMEs often get stuck in when trying to put sustainability into practice:
The research confirmed that a gap exists between SME sustainability goals and actual implementation. It identified three critical implementation thresholds that SMEs often get stuck in when trying to put sustainability into practice:
The research confirmed that a gap exists between SME sustainability goals and actual implementation. It identified three critical implementation thresholds that SMEs often get stuck in when trying to put sustainability into practice:
Stuck in Ambiguity: This is the initial stage where SMEs struggle with basic understanding and awareness of sustainability, feeling overwhelmed or unsure where to start.
Buried in Complexity: After overcoming initial awareness issues, SMEs can become overwhelmed by the sheer volume and complexity of sustainability information, frameworks, and data requirements.
Struggling to Start: Even with knowledge, SMEs face challenges in translating that understanding into concrete actions and often lack the resources or support to implement initiatives effectively.
Stuck in Ambiguity: This is the initial stage where SMEs struggle with basic understanding and awareness of sustainability, feeling overwhelmed or unsure where to start.
Buried in Complexity: After overcoming initial awareness issues, SMEs can become overwhelmed by the sheer volume and complexity of sustainability information, frameworks, and data requirements.
Struggling to Start: Even with knowledge, SMEs face challenges in translating that understanding into concrete actions and often lack the resources or support to implement initiatives effectively.
Stuck in Ambiguity: This is the initial stage where SMEs struggle with basic understanding and awareness of sustainability, feeling overwhelmed or unsure where to start.
Buried in Complexity: After overcoming initial awareness issues, SMEs can become overwhelmed by the sheer volume and complexity of sustainability information, frameworks, and data requirements.
Struggling to Start: Even with knowledge, SMEs face challenges in translating that understanding into concrete actions and often lack the resources or support to implement initiatives effectively.
Within these thresholds we identified seven distinct barrier categories faced by SMEs, which result from a complex interplay of internal business dynamics and external pressures. These go beyond simple lack of money or knowledge, as highlighted in previous research.
Within these thresholds we identified seven distinct barrier categories faced by SMEs, which result from a complex interplay of internal business dynamics and external pressures. These go beyond simple lack of money or knowledge, as highlighted in previous research.
Within these thresholds we identified seven distinct barrier categories faced by SMEs, which result from a complex interplay of internal business dynamics and external pressures. These go beyond simple lack of money or knowledge, as highlighted in previous research.
Response Patterns
Response Patterns
Despite the barriers, SME leaders find ways to adapt. The research identified nine recurring response patterns. These patterns show how leaders react within their constraints, influenced by their intrinsic motivations, organizational design choices, and management approaches.
These patterns are:
Despite the barriers, SME leaders find ways to adapt. The research identified nine recurring response patterns. These patterns show how leaders react within their constraints, influenced by their intrinsic motivations, organizational design choices, and management approaches.
These patterns are:
Despite the barriers, SME leaders find ways to adapt. The research identified nine recurring response patterns. These patterns show how leaders react within their constraints, influenced by their intrinsic motivations, organizational design choices, and management approaches.
These patterns are:
Designing authentic, actionable and adaptive business structures: Leaders build flexible organizations that can adjust to changes while staying true to their core values and purpose, addressing rigid structures and fragmented working cultures.
Taking responsibility to nurture stability and psychological safety: Leaders create a stable and supportive work environment where team members feel safe to embrace change and innovation, helping overcome fear and doubt.
Moving beyond ego to create space for growth: Leaders are open about their vulnerabilities and willing to learn, seeing knowledge gaps as opportunities, which helps reduce fear and doubt in decision-making.
Leadership rooted in conviction that everyone thrives together: Driven by a deep belief in collective prosperity, leaders make decisions that aim for everyone's success, moving beyond short-term pressures.
Nurturing collective prosperity: Businesses build strong community connections and mutually beneficial relationships, providing tangible benefits to the community, which helps embed them within supportive networks.
Relentlessly pursuing new paths to progress: Leaders show a persistent drive to improve and innovate, despite challenges, fostering incremental progress even with sustainability's complexity.
Navigating shifting demands that influence operations: This pattern involves pragmatic adaptability to changing business environments, maintaining momentum and finding creative solutions for limited resources.
Anchoring business practices in values to create positive impact: Business decisions are consistently aligned with core values and impact goals, viewing sustainability as a competitive advantage that shapes their approach.
Approaching uncertainty with pragmatism: Leaders take a balanced approach to risk, making calculated steps into the unknown and trusting the process, which helps move forward amidst uncertainty.
Designing authentic, actionable and adaptive business structures: Leaders build flexible organizations that can adjust to changes while staying true to their core values and purpose, addressing rigid structures and fragmented working cultures.
Taking responsibility to nurture stability and psychological safety: Leaders create a stable and supportive work environment where team members feel safe to embrace change and innovation, helping overcome fear and doubt.
Moving beyond ego to create space for growth: Leaders are open about their vulnerabilities and willing to learn, seeing knowledge gaps as opportunities, which helps reduce fear and doubt in decision-making.
Leadership rooted in conviction that everyone thrives together: Driven by a deep belief in collective prosperity, leaders make decisions that aim for everyone's success, moving beyond short-term pressures.
Nurturing collective prosperity: Businesses build strong community connections and mutually beneficial relationships, providing tangible benefits to the community, which helps embed them within supportive networks.
Relentlessly pursuing new paths to progress: Leaders show a persistent drive to improve and innovate, despite challenges, fostering incremental progress even with sustainability's complexity.
Navigating shifting demands that influence operations: This pattern involves pragmatic adaptability to changing business environments, maintaining momentum and finding creative solutions for limited resources.
Anchoring business practices in values to create positive impact: Business decisions are consistently aligned with core values and impact goals, viewing sustainability as a competitive advantage that shapes their approach.
Approaching uncertainty with pragmatism: Leaders take a balanced approach to risk, making calculated steps into the unknown and trusting the process, which helps move forward amidst uncertainty.
Designing authentic, actionable and adaptive business structures: Leaders build flexible organizations that can adjust to changes while staying true to their core values and purpose, addressing rigid structures and fragmented working cultures.
Taking responsibility to nurture stability and psychological safety: Leaders create a stable and supportive work environment where team members feel safe to embrace change and innovation, helping overcome fear and doubt.
Moving beyond ego to create space for growth: Leaders are open about their vulnerabilities and willing to learn, seeing knowledge gaps as opportunities, which helps reduce fear and doubt in decision-making.
Leadership rooted in conviction that everyone thrives together: Driven by a deep belief in collective prosperity, leaders make decisions that aim for everyone's success, moving beyond short-term pressures.
Nurturing collective prosperity: Businesses build strong community connections and mutually beneficial relationships, providing tangible benefits to the community, which helps embed them within supportive networks.
Relentlessly pursuing new paths to progress: Leaders show a persistent drive to improve and innovate, despite challenges, fostering incremental progress even with sustainability's complexity.
Navigating shifting demands that influence operations: This pattern involves pragmatic adaptability to changing business environments, maintaining momentum and finding creative solutions for limited resources.
Anchoring business practices in values to create positive impact: Business decisions are consistently aligned with core values and impact goals, viewing sustainability as a competitive advantage that shapes their approach.
Approaching uncertainty with pragmatism: Leaders take a balanced approach to risk, making calculated steps into the unknown and trusting the process, which helps move forward amidst uncertainty.
These patterns reveal that actions SMEs take in relation to sustainability are often already aligned with their values; the challenge is enabling consistent expression of these values operationally. The capacities built through these actions, reinforce the sense of purpose, meaning and fulfillment which allows leaders to actualize the impact they envision. Leaders showed self-awareness, acknowledging limits but seeking help and bringing in external expertise.
These patterns reveal that actions SMEs take in relation to sustainability are often already aligned with their values; the challenge is enabling consistent expression of these values operationally. The capacities built through these actions, reinforce the sense of purpose, meaning and fulfillment which allows leaders to actualize the impact they envision. Leaders showed self-awareness, acknowledging limits but seeking help and bringing in external expertise.
These patterns reveal that actions SMEs take in relation to sustainability are often already aligned with their values; the challenge is enabling consistent expression of these values operationally. The capacities built through these actions, reinforce the sense of purpose, meaning and fulfillment which allows leaders to actualize the impact they envision. Leaders showed self-awareness, acknowledging limits but seeking help and bringing in external expertise.
SME leaders are not aiming for sustainability "perfection" but are designing for purpose-driven impact. They embody sustainability through practical steps that reflect their convictions. Resilience was often described through stories of adaptation and staying on course with their vision. The community support built through relationships was highlighted as a strong buffer in challenging times. Examples included paying staff well, profit sharing, innovating farming systems, decentralizing management, and providing housing for employees.
SME leaders are not aiming for sustainability "perfection" but are designing for purpose-driven impact. They embody sustainability through practical steps that reflect their convictions. Resilience was often described through stories of adaptation and staying on course with their vision. The community support built through relationships was highlighted as a strong buffer in challenging times. Examples included paying staff well, profit sharing, innovating farming systems, decentralizing management, and providing housing for employees.
SME leaders are not aiming for sustainability "perfection" but are designing for purpose-driven impact. They embody sustainability through practical steps that reflect their convictions. Resilience was often described through stories of adaptation and staying on course with their vision. The community support built through relationships was highlighted as a strong buffer in challenging times. Examples included paying staff well, profit sharing, innovating farming systems, decentralizing management, and providing housing for employees.
Redefining Sustainability and Resilience
Redefining Sustainability and Resilience
A key finding challenges the traditional view of the quadruple bottom line (purpose, people, planet, profit) as four equal pillars. The research suggests a purpose-centric model, where purpose is the overarching sphere, and people, planet, and
A key finding challenges the traditional view of the quadruple bottom line (purpose, people, planet, profit) as four equal pillars. The research suggests a purpose-centric model, where purpose is the overarching sphere, and people, planet, and
profit are interdependent domains embedded within it. This reflects how SME leaders often operate, where decisions and actions stem from their core purpose and values. Many leaders emphasized serving their communities, employees, and customers, showing a natural orientation towards positive social and environmental impacts even without formal frameworks.
The relationship between sustainability and resilience was also re-evaluated. While some literature sees resilience as a foundation for sustainability, this research suggests the inverse. Sustainability is best understood as the continuous process of building internal capacity aligned with purpose. Resilience represents the organization's ability to mobilize that capacity effectively during disruption. Businesses that invest in sustainability-aligned systems are seen as more likely to demonstrate operational resilience over time. Resilience isn't just reacting to crises, but having established systems, relationships, and support mechanisms built through sustainability practices.
profit are interdependent domains embedded within it. This reflects how SME leaders often operate, where decisions and actions stem from their core purpose and values. Many leaders emphasized serving their communities, employees, and customers, showing a natural orientation towards positive social and environmental impacts even without formal frameworks.
The relationship between sustainability and resilience was also re-evaluated. While some literature sees resilience as a foundation for sustainability, this research suggests the inverse. Sustainability is best understood as the continuous process of building internal capacity aligned with purpose. Resilience represents the organization's ability to mobilize that capacity effectively during disruption. Businesses that invest in sustainability-aligned systems are seen as more likely to demonstrate operational resilience over time. Resilience isn't just reacting to crises, but having established systems, relationships, and support mechanisms built through sustainability practices.
A key finding challenges the traditional view of the quadruple bottom line (purpose, people, planet, profit) as four equal pillars. The research suggests a purpose-centric model, where purpose is the overarching sphere, and people, planet, and profit are interdependent domains embedded within it. This reflects how SME leaders often operate, where decisions and actions stem from their core purpose and values. Many leaders emphasized serving their communities, employees, and customers, showing a natural orientation towards positive social and environmental impacts even without formal frameworks.
The relationship between sustainability and resilience was also re-evaluated. While some literature sees resilience as a foundation for sustainability, this research suggests the inverse. Sustainability is best understood as the continuous process of building internal capacity aligned with purpose. Resilience represents the organization's ability to mobilize that capacity effectively during disruption.
Businesses that invest in sustainability-aligned systems are seen as more likely to demonstrate operational resilience over time. Resilience isn't just reacting to crises, but having established systems, relationships, and support mechanisms built through sustainability practices.
The relationship between sustainability and resilience was also re-evaluated. While some literature sees resilience as a foundation for sustainability, this research suggests the inverse. Sustainability is best understood as the continuous process of building internal capacity aligned with purpose. Resilience represents the organization's ability to mobilize that capacity effectively during disruption.
Businesses that invest in sustainability-aligned systems are seen as more likely to demonstrate operational resilience over time. Resilience isn't just reacting to crises, but having established systems, relationships, and support mechanisms built through sustainability practices.
Conclusion
Conclusion
The research concludes that the main barrier to SME sustainability implementation isn't a lack of desire, as most actions are inspired by purpose. There is an inherent desire to achieve a sense of purpose, fulfillment and drive collective meaning. Instead, the barrier is getting stuck at implementation thresholds due to emotional factors, complexity, limited resources, and fragmented support systems.
The study reframes sustainability as building capacity aligned with purpose and resilience as mobilizing that capacity during challenges. It suggests that supporting SMEs means leveraging their existing capacities and purpose-driven values, rather than trying to force them into complex external frameworks. The proposed interventions offer pathways to make sustainability implementation easier, clearer, and more coordinated, enabling sustainable progress and strengthening resilience - a continuous process of capacity building to be in a better position when that capacity is drawn upon to navigate everyday realities.
The research concludes that the main barrier to SME sustainability implementation isn't a lack of desire, as most actions are inspired by purpose. There is an inherent desire to achieve a sense of purpose, fulfillment and drive collective meaning. Instead, the barrier is getting stuck at implementation thresholds due to emotional factors, complexity, limited resources, and fragmented support systems.
The study reframes sustainability as building capacity aligned with purpose and resilience as mobilizing that capacity during challenges. It suggests that supporting SMEs means leveraging their existing capacities and purpose-driven values, rather than trying to force them into complex external frameworks. The proposed interventions offer pathways to make sustainability implementation easier, clearer, and more coordinated, enabling sustainable progress and strengthening resilience - a continuous process of capacity building to be in a better position when that capacity is drawn upon to navigate everyday realities.
The research concludes that the main barrier to SME sustainability implementation isn't a lack of desire, as most actions are inspired by purpose. There is an inherent desire to achieve a sense of purpose, fulfillment and drive collective meaning. Instead, the barrier is getting stuck at implementation thresholds due to emotional factors, complexity, limited resources, and fragmented support systems.
The study reframes sustainability as building capacity aligned with purpose and resilience as mobilizing that capacity during challenges. It suggests that supporting SMEs means leveraging their existing capacities and purpose-driven values, rather than trying to force them into complex external frameworks. The proposed interventions offer pathways to make sustainability implementation easier, clearer, and more coordinated, enabling sustainable progress and strengthening resilience - a continuous process of capacity building to be in a better position when that capacity is drawn upon to navigate everyday realities.
Learn More
Learn More
You can find our full report on the OCAD University Open Repository, or skim over our short Research Summary.
You can find our full report on the OCAD University Open Repository, or skim over our short Research Summary.
You can find our full report on the OCAD University Open Repository, or skim over our short Research Summary.