Awareness and adoption of circular economy in the consumption and production value-chain among MSMEs towards sustainable development

Yusuf Opeyemi Akinwale

African Journal of Science, Technology, Innovation and Development, 2024, vol. 16, issue 4, 537-546

Abstract: The global value-chain was hugely disrupted by the Covid-19 pandemic which collapsed many micro, small and medium enterprises (MSMEs) globally, especially in Africa where little or no support was received from governments. The circular economy (CE) is recognized as a sustainable option for the linear economic system, as it resolves the crisis of a scarcity of resources in the value-chain and reduces the cost of materials, enabling a sustainable environment. This study aims to assess the awareness, level of adoption and factors driving CE among MSMEs in Nigeria. The results reveal that the level of awareness of CE among the sampled 206 MSMEs is moderately high though with a low level of adoption. The results, using the logistic regression method, indicate that top management commitment, digital technology, regulatory incentives and financial resources are the main drivers of CE adoption. In addition to this, the study recommends improvement in training of employees in CE activities and the fostering of collaboration with other companies and customers within the value-chain. There is a strong need for government policy which enlightens business enterprises on the importance of CE adoption in their value-chain, provides CE financial support for small enterprises as well as ensuring inter-organization cooperation within the value-chain.

Date: 2024
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DOI: 10.1080/20421338.2023.2247924

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