What is it about?

This study explores how small and medium-sized enterprises (SMEs) in France, Greece, Spain, and the UK are adopting circular economy (CE) practices, and how this affects their sustainability performance. Using surveys, interviews, and case studies from around 100 SMEs in each country, the research looks at key stages of a company’s operations: design, procurement, production, distribution, consumption, and recovery. The findings show that CE adoption improves environmental performance by making businesses more energy- and resource-efficient and by reducing waste. Among the different stages, “design” is the strongest driver of CE adoption, while “recovery” (such as recycling and reuse) is the weakest.

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Why is it important?

Small businesses make up the backbone of Europe’s economy, yet many face barriers in adopting sustainable practices. By identifying which CE activities have the most impact, and which need more support, this study helps policymakers, customers, and business leaders focus their efforts where they will make the biggest difference. The proposed framework offers a practical roadmap for SMEs to integrate CE into their operations and enhance their long-term sustainability.

Perspectives

As someone who has worked extensively on circular economy research, I see SMEs as powerful change agents in the sustainability transition. This study reinforces that with the right strategy, support, and motivation, small businesses can lead the way in creating a more resource-efficient and environmentally responsible economy.

Dr Krish Saha
Birmingham City University

Read the Original

This page is a summary of: Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe, International Journal of Production Economics, June 2022, Elsevier,
DOI: 10.1016/j.ijpe.2022.108496.
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