Sensory and Regenerative Design in SMEs: Strategies for Environmental Restoration and Experiential Engagement

Abstract: Small and medium enterprises (SMEs) play a pivotal role in local economies, yet they often face challenges in adopting innovative design practices that enhance both ecological sustainability and human experience. This study explores how regenerative and sensory design principles can be applied within the built environments of SMEs—particularly retail and exhibition spaces—to create environments that are simultaneously ecologically restorative and experientially engaging. The central research question guiding this work is: How can SMEs integrate regenerative and sensory design strategies in a cost-effective and scalable manner to enhance environmental performance and human well-being?The methodology employed a literature-based, mixed-methods approach, combining a state-of-the-art review in regenerative design, sensory design, and SME-focused research with the analysis of applied examples in retail and exhibition contexts. Key sources included foundational texts on regenerative design (Lyle, 1994; Mang & Reed, 2012; McDonough & Braungart, 2002), multisensory engagement (Pallasmaa, 2005; Malnar & Vodvarka, 2004), and empirical studies on SME spatial performance, environmental impact, and customer experience. This review was complemented by the synthesis of case studies from global brands (e.g., Aesop) to identify practical, low-budget strategies relevant to SMEs.Results reveal a set of guidelines and actionable strategies that SMEs can implement to foster regenerative and sensory-rich environments. These include: prioritizing biophilic design (plants, natural light, water features) to enhance air quality, reduce energy dependence, and engage multiple senses; incorporating natural, reclaimed, or biodegradable materials to support circular economy principles while creating tactile and visually rich experiences; designing soundscapes and ambient sensory cues to influence emotional and cognitive responses; and fostering community interaction and participatory experiences to strengthen social resilience and brand identity. Practical applications demonstrate that SMEs can achieve measurable benefits—such as improved customer engagement (up to 33%), enhanced employee productivity (10–25%), and operational savings (9–30%)—even with limited budgets, by leveraging modular, reusable, and locally sourced interventions.The discussion highlights synergies and barriers in implementing regenerative and sensory design in SMEs. Synergies include the alignment of ecological integrity with emotional engagement, operational coherence through localized sourcing and biophilic integration, and enhanced branding through sensory storytelling. Barriers include financial constraints, limited design literacy, regulatory restrictions, and cultural perceptions of design as non-essential. Policy interventions, such as grant programs, simplified regulations, capacity-building initiatives, and recognition of regenerative and sensory criteria in certification programs, are identified as crucial enablers for broader adoption.In conclusion, integrating regenerative and sensory design within SME-built environments represents a pragmatic and ethical pathway to simultaneously improve environmental outcomes, human well-being, and business performance. The findings challenge the notion that innovative, ecologically responsive, and sensory-rich design is exclusive to large corporations, demonstrating that even resource-limited SMEs can act as agents of ecological and social regeneration. Future research should explore longitudinal studies and participatory evaluations to refine these strategies and assess long-term impacts across diverse SME contexts and cultural settings. By embracing these principles, SMEs can transform everyday spaces into environments that are not merely functional but restorative, inspiring, and experientially memorable.

Keywords: Regenerative Design, Sensory Design, Small and Medium Enterprises (SMEs), Sustainable Built Environments, Experiential Engagement

DOI: 10.54941/ahfe1007149

Cite this paper:

​