Going beyond waste reduction: Exploring tools and methods for circular economy adoption in small-medium enterprises

Abstract

We explore six small-medium enterprises (SMEs) across multiple sectors and their approach towards circular economy (CE) adoption. Our study explores the ‘how and why’ of CE adoption for SMEs, comparing opportunities and challenges around chosen tools and methods. A multi-methodological approach uses interviews, facilitated workshops and tool demonstrations to examine SMEs across agri-food, clothing, carpet, manufacturing and mobility sectors. Making sense of CE adoption means SMEs are observed in the wider context of supply chains, customers, and government/non-government organizations. We find that with some adaptation, current management tools such as value mapping, life cycle assessment, modelling & simulation, and capability maturity can assist SMEs towards becoming more circular and sustainable. Our framework presents a phased transition of CE tool deployment that encourages SMEs to go beyond waste reduction, and connect with social and environmental contexts, capturing value through circular practice from emerging servicised markets, digital technologies, and regional collaboration.