Identifying barriers and good practices for implementing circular economy principles in small and medium enterprises

Abstract

Recently, the new industrial paradigm of circular economy (CE) has acquired increasing attention. In a CE, the value of materials is preserved by keeping them for as long as possible in the economic system, overcoming the “traditional” linear model (take‐waste‐disposal). Despite its benefits in terms of sustainability, there are still numerous barriers to the implementation of CE principles for companies, and specifically, small and medium enterprises (SMEs) find it difficult to integrate CE principles within their business models due to a shortage of resources. Hence, a qualitative multiple‐case study involving four Italian companies implementing CE principles is conducted. The findings contribute to the development of CE principles in SMEs by proposing good practices, such as encouraging SMEs to engage in research projects to secure initial investments, expanding suppliers' networks to reduce the risk of limited by‐product availability, and implementing organizational training on CE to enhance employees' awareness and skills.