Apractical framework for the implementation of circular economy in small and medium-sized enterprises

Abstract

Circular economy presents a real opportunity for the transition from the linear wasteful economy model that is reigning over modern societies to a more sustainable one. Although large multinational corporations dominate the global economy, small and medium-sized enterprises (SMEs) could play a huge role in realising this transition due to their prevalence and their aggregate ecological footprint. Therefore, supporting them in this quest has been the focus of many governmental and institutional activities. In addition, the academic research is increasingly involved in developing theoretical frameworks and strategies for implementing circular economy whether on regional, industrial, or company level. However, in the context of SMEs, there is still a need for putting emphasis on their particularities when developing such frameworks.

In this light, this work tries to develop a framework for the implementation of circular economy in SMEs by incorporating all the internal and external factors present in their business environment. Upon thorough literature review on the drivers, potentials and obstacles facing SMEs in adopting circular practices, and analysis of case studies of successful implementations by three companies, this work proposes a practical framework consisting of five blocks, each including a checklist of the necessary actions, tools, and mechanisms. This will help SMEs find answers for critical questions related to the benefits and risks of embracing circularity, the influence of their business ecosystem, and the right approach to the transition. Furthermore, the framework recommends the available learning and support sources, and specifies the managerial implications and skills needed to achieve an effective implementation.