Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers

Vasileios Rizos, Arno Behrens, Wytze Van der Gaast, Erwin Hofman, Anastasia Ioannou, Terri Kafyeke, Alexandros Flamos, Roberto Rinaldi, Sotiris Papadelis, Martin Hirschnitz-Garbers and Corrado Topi
Additional contact information
Vasileios Rizos: CEPS (Centre for European Policy Studies), Place du Congrès 1, 1000 Brussels, Belgium
Arno Behrens: CEPS (Centre for European Policy Studies), Place du Congrès 1, 1000 Brussels, Belgium
Wytze Van der Gaast: JIN Climate and Sustainability, Laan Corpus den Hoorn 300, 9728 JT Groningen, The Netherlands
Erwin Hofman: JIN Climate and Sustainability, Laan Corpus den Hoorn 300, 9728 JT Groningen, The Netherlands
Anastasia Ioannou: Department of Industrial Management & Technology, University of Piraeus (UNIPI), 80, Karaoli & Dimitriou Street, 185 34 Piraeus, Greece
Terri Kafyeke: Ecologic Institute, Pfalzburger Strasse 43/44, 10717 Berlin, Germany
Alexandros Flamos: Department of Industrial Management & Technology, University of Piraeus (UNIPI), 80, Karaoli & Dimitriou Street, 185 34 Piraeus, Greece
Roberto Rinaldi: Stockholm Environment Institute, University of York, Heslington, York YO10 5NG, UK
Sotiris Papadelis: Department of Industrial Management & Technology, University of Piraeus (UNIPI), 80, Karaoli & Dimitriou Street, 185 34 Piraeus, Greece
Martin Hirschnitz-Garbers: Ecologic Institute, Pfalzburger Strasse 43/44, 10717 Berlin, Germany
Corrado Topi: Stockholm Environment Institute, University of York, Heslington, York YO10 5NG, UK

Sustainability, 2016, vol. 8, issue 11, 1-18

Abstract: Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs’ green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.

Keywords: SMEs; circular economy; green economy; business model; resource efficiency; green innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (195)

Downloads: (external link)
https://www.mdpi.com/2071-1050/8/11/1212/pdf (application/pdf)
https://www.mdpi.com/2071-1050/8/11/1212/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:8:y:2016:i:11:p:1212-:d:83559

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().