Challenge and Opportunity for Small Sustainable Businesses

As a sustainable business owner, I have always believed that every choice we make, from the suppliers we trust to the packaging that carries our products, reflects our values.
But the conversation around packaging sustainability is growing rapidly, and 2025 is shaping up to be a defining year for anyone in the space.
The EU Deforestation Regulation (EUDR) will soon change the way all businesses that use wood or packaging paper operate. Whether you’re exporting to the EU or sourcing through the European supply chain, you’ll soon need to prove where your wood comes from, right down to where the tree grew.
On paper, this is a great move. It is designed to prevent deforestation and ensure that every pallet, crate, box, or paperboard comes from properly managed forests. But for the small and medium
for sustainable businesses like mine, this new law brings both confirmation and significant challenges.
For large companies, compliance can mean hiring dedicated teams or investing in advanced traceability systems. For small businesses, the impact is more personal and more complex.
Many packaging providers, especially those looking for the world, are not yet ready to provide the level of GPS traceability required by the EUDR. As consumers, we are a few steps removed from the first forest.
That makes collecting source data very difficult. The reality is that small businesses do not have the same resources as large companies.
Collecting, verifying, and documenting the source of every piece of packaging takes time, money, and energy that most SMEs don’t have. Even in companies like mine, which have been built on sustainability from day one, the responsibility of management is significant. There is also a clear imbalance of power.
When small businesses ask large suppliers for detailed traceability information, we often encounter delays and a lack of data, yet we still adhere to the same legal standards as larger companies.
The level of work involved in compliance is enormous. Every box, tag, and piece of paper now requires a chain of custody which for a packaging company means most of our products. For a small business, this is not just an immediate compliance task, it is an ongoing task that affects almost every department.
Teams that once focused on creative design, marketing, or customer experience now find themselves deep in due diligence, spreadsheets, and certification programs. It is a daunting task, but it is necessary if we are to maintain the integrity of our sustainability commitments and continue to trade responsibly in the years to come.
At Tiny Box Company, we’ve been reviewing what the EUDR will mean for us for months now. We work closely with our suppliers to ensure that the data we need is taken from the source, and we do everything we can to obtain reliable information.
It’s a lot of effort, and sometimes it feels like we’re trying to rebuild the foundations of something we already thought was solid. But we also know that making this foundation now will set us up for a strong and clear future.
Despite these challenges, the EUDR represents a powerful opportunity for businesses like ours. It is an opportunity to show what we have been promoting for years: that transparency and traceability are not just principles, but achievable and necessary goals.
For those already committed to sustainability, this regulation provides a platform to prove it. Having verifiable data about our packaging not only satisfies compliance requirements, but builds trust with our customers, who are increasingly concerned not only with what the product is made of, but also where it comes from.
The EUDR also encourages more mutually beneficial negotiations between businesses and suppliers. To meet these needs, we will need closer cooperation and more openness, which can ultimately strengthen relationships and lead to stronger supply chains. It’s over
in the long run, this transparency can help change the market, reward those who work responsibly and drive suppliers that are lagging behind to catch up.
Another positive effect is that it forces us all to rethink how much packing we really need. When every gram of wood or paper has to be traced back to its origin, using less suddenly makes environmental and financial sense for many businesses.
At the Tiny Box company, we have already started rethinking our designs and processes to reduce complexity, choosing materials that are easy to track and verify. It is a continuous process of improving what we do and how we work.
It’s easy to see why some small businesses might feel overwhelmed – the paperwork, the data management, the communication between global suppliers. But once these programs are in place, the benefits will begin to show. We will have cleaner data, fewer weak points in our supply chains, and greater confidence in the materials we use.
In the long run, the hours invested now can translate into reduced risk, smoother audits, and a stronger case for clients who appreciate transparency. The EUDR can feel overwhelming, especially for small sustainable businesses that are already trying to do the right thing.
But it is important to see this as an opportunity to align values with affirmative action. It is a reminder that sustainability is something that can be measured, proven, and developed.
Knowing where our packaging comes from is not just about compliance. It’s about integrity and accountability, running a business that really understands what it’s selling and where its products come from.


