Promoting Circular Economy Model through SMEs’ Growth: A Focus on African Nations

Abstract

Purpose- The purpose of this study is to investigate the pivotal role of Small and Medium-sized Enterprises (SMEs) in promoting circular economy principles within African countries. By examining the challenges, opportunities, and policy implications, this research aims to provide valuable insights into how SME development can be harnessed as a catalyst for sustainable and circular economic growth in the African context. Design/methodology/approach: Our methodology encompasses a comprehensive literature review and theoretical analysis to explore the relationship between Small and Medium-sized Enterprises (SMEs) and circular economy principles in African countries, providing a robust foundation for our study. Findings: The study's findings emphasize the significant potential of African SMEs in promoting circular economy practices. However, they also reveal the various challenges these SMEs encounter, including financial constraints and regulatory complexities. Successful initiatives and supportive policies demonstrate that with targeted interventions, SMEs can play a vital role in advancing sustainability in Africa. Research limitations/implications: The study primarily relies on theoretical analysis due to the absence of empirical data, potentially limiting the practical application of findings. Additionally, the diverse African context may require further country-specific research for precise policy recommendations. Social implications: The research carries significant social implications, as the adoption of circular economy practices by SMEs in African nations can lead to the creation of more sustainable and inclusive economic systems, positively impacting local communities and fostering social cohesion. Originality/value: The research contributes original insights by specifically focusing on the underexplored intersection of SMEs and the circular economy in the African context, providing a valuable foundation for future studies and policy initiatives aimed at fostering sustainability and economic development.