SMEs and Transition to Circular Economy

Suzana Stoimenov; Aleksandar Gračanac

doi:10.62907/eemr240301001s

Authors

Suzana Stoimenov Faculty of Entrepreneurial Business and Real Estate Management University "Union-Nikola Tesla" Belgrade, Cara Dušana 62-64 Author
Aleksandar Gračanac Faculty of Entrepreneurial Business and Real Estate Management University "Union-Nikola Tesla" Belgrade, Cara Dušana 62-64 Author

DOI:

https://doi.org/10.62907/eemr240301001s

Keywords:

Circular economy, Small and medium enterprises

Abstract

The circular economy3 is not an end in itself; it is a tool that contributes to overarching goals such as climate neutrality and resource preservation. The paper analyses the nexus between small and medium-sized enterprises 4 and circular economy. The subject of research can be presented in the form question what is the role of SMEs in the implementation of CE? The aim of this paper is to contribute to the development of the circular economy by SMEs, including innovation as a link between SMEs and the circular economy (CE). The paper explains how the link between SMEs and the circular economy (CE) has been established. The concept of CE is actually an economic model for systems of production and consumption in a closed cycle and an important tool in achieving climate neutrality. It can be concluded that SMEs, given that they constitute a significant part of the economy, are considered major employers, and possess the ability to quickly adapt to market changes, represent an important factor in the implementation of the circular economy (CE). In the implementation of innovative solutions, SMEs face challenges such as required investments, the need for qualified personnel, and the time necessary for implementation. It is important to identify the factors that influence the ability and willingness of SMEs to integrate circular economy (CE) principles into their operations.

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