scholarly journals Beyond the circular economy theory: Implementation methodology for industrial SMEs

2021 ◽  
Vol 14 (3) ◽  
pp. 425
Author(s):  
Vanessa Prieto-Sandoval ◽  
Luz Elba Torres-Guevara ◽  
Marta Ormazabal ◽  
Carmen Jaca
Keyword(s):  
Circular Economy ◽  
Small And Medium Enterprises ◽  
The Sustainable Development ◽  
Whole Process ◽  
Circular Model ◽  
Ball Rolling ◽  
Industrial Parks ◽  
Production Practices ◽  
Implementation Methodology ◽  
Medium Enterprises

Purpose: The circular economy has multiple benefits and opportunities to achieve sustainability and a better future for the next generations. The purpose of this paper is to propose a methodology that guides step-by-step any industrial SMEs in the transition from the linear to a circular model. Small and medium enterprises (SMEs) have a crucial role in the sustainable development transition, considering that they represent most of the world's companies.Design/methodology/approach: To develop this methodology, two research techniques were used: a focus group and storyboarding.Findings: The resulting methodology, called Ecopyme, comprises five steps: 1) Firm identity, 2) Diagnosis, 3) Planning, 4) Get the ball rolling, and 5) Assessment and feedback. In addition, two key criteria that must be included in the whole process were identified: value creation in the firm through a circular economy and organization commitment from the top management to the staff.Research limitations/implications: The Ecopyme methodology has two limitations: It does not propose either implementation tools or involve consumers and actors at the meso (e.g., Eco-industrial parks) and macro (e.g., cities, provinces, countries) levels.Practical implications: This study will help policymakers understand the SMEs' perspective and remove barriers that may hinder the paradigm shift. The methodology is also a useful tool for consultants and entrepreneurs to incorporate the circular economy (CE) principles into their business.Originality/value: In the CE literature, little attention has been paid to proposing a structured methodology to implement CE in SMEs. Thus, the study provides a step-by-step methodology that guides any industrial SMEs to transition from linear to circular.  Also, it provides additional evidence concerning the importance of human commitment in changing firms' paradigm because people can encourage the adoption of responsible production practices if firms commit CEOs, sustainability managers, and staff.

scholarly journals Foresight for Small and Medium Enterprises in the Context of the Circular Economy

2021 ◽  
Vol 15 (1) ◽  
pp. 86-96
Author(s):  
Wendy Anzules-Falcones ◽  
◽  
Angela Maria Diaz-Marquez ◽  
Leon Padilla ◽  
Daniel Hernan-Hidalgo ◽  
...  
Keyword(s):  
Circular Economy ◽  
Small And Medium Enterprises ◽  
Low Cost ◽  
Scenario Planning ◽  
Processing Technologies ◽  
Circular Model ◽  
Special Fund ◽  
Medium Enterprises ◽  
Development Prospects ◽  
Support Research

Small, medium, and micro enterprises make important contributions to economic growth and employment. Based on evidence from of the tire processing industry in Ecuador, this article assesses the development prospects for such companies in the context of the transition to a circular economy. The methodological basis of the study is scenario planning. Five scenario hypotheses are proposed and the probability of their implementation is estimated. The most optimal scenario (in which all five hypotheses are realized) is feasible and subject to a set of measures, including the development of new management and marketing tools, the involvement of universities and research centers in the creation of new low-cost waste processing technologies, and the organization of a special fund to support research and development in companies focused on the circular model.

scholarly journals Circular Business Models and Circular Agriculture: Perceptions and Practices of Dutch Farmers

2021 ◽  
Vol 13 (3) ◽  
pp. 1282
Author(s):  
Hans Dagevos ◽  
Carolien de Lauwere
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Food System ◽  
Small And Medium Enterprises ◽  
Business Management ◽  
Dutch Government ◽  
Business Operations ◽  
Production Practices ◽  
Medium Enterprises ◽  
The Impact

Although it is not clear yet what a full-grown circular economy (CE) is going to look like, it is clear that the challenges of transitioning to a CE are both impressive and urgent. The Dutch government has expressed the ambition to establish a CE in the Netherlands in 2050. In the wake of this, the Dutch Ministry of Agriculture, Nature and Food Quality laid down a vision on circular agriculture (CA). A key question with respect to both CE and CA is if and to what extent this means business as unusual: How distinct is circular business from normal business operations? The ways in which the notions of CE and circular business models (CBMs) are often introduced suggest a big difference. However, closer scrutiny also reveals that in practice the impact of circularity is less obvious. Against the backdrop of such opposite observations, this paper examines how Dutch farmers perceive circularity and what implications this has for their production practices. Interviews (n = 13) with Dutch farmers show that circular business is adapted in normal business management by some and regarded as a genuine alternative to the conventional food system by others. By taking Dutch farmers as an example, this paper aims to contribute to our understanding of how CE is interpreted in small and medium enterprises (SMEs).

scholarly journals From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy

2021 ◽  
Vol 13 (3) ◽  
pp. 1021
Author(s):  
Sara Scipioni ◽  
Meir Russ ◽  
Federico Niccolini
Keyword(s):  
Organizational Learning ◽  
Circular Economy ◽  
Business Models ◽  
Small And Medium Enterprises ◽  
Sustainable Business ◽  
Fine Grained ◽  
Contextual Elements ◽  
Transfer And Retention ◽  
Multi Level ◽  
Medium Enterprises

To contribute to small and medium enterprises’ (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes—denoted here as multi-level knowledge creation, transfer, and retention processes—as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As a main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct—composed of external stakeholders’, SC stakeholders’, and organizational culture—identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.

scholarly journals Success Drivers for Implementing Circular Economy: A Case Study from the Building Sector in Colombia

2021 ◽  
Vol 13 (3) ◽  
pp. 1350
Author(s):  
Luz Elba Torres-Guevara ◽  
Vanessa Prieto-Sandoval ◽  
Andres Mejia-Villa
Keyword(s):  
Circular Economy ◽  
Small And Medium Enterprises ◽  
Implementation Process ◽  
Construction Sector ◽  
Direct Communication ◽  
Management Commitment ◽  
Medium Enterprises ◽  
Large Building ◽  
Do So

This paper contributes to the circular economy (CE) literature by investigating the drivers of success of the CE implementation in the construction sector and how those drivers can complement any implementation process in small and medium enterprises (SMEs). To do so, we analyzed the case of TECMO Estructuras Metálicas, using the methodology proposed by Jaca and colleagues to implement the CE in SMEs. It is a Colombian company with more than five decades of experience in the manufacture and installation of steel and aluminum structures for small and large building and infrastructure projects. The data were collected between August 2019 and November 2020 through direct communication with the company via workshops, meetings, and company reports. This research found that five drivers are relevant for implementing CE in the construction sector: fertile ecosystem, management commitment, identification of valuable materials, green teams, and CE intermediaries. Moreover, this study also contributes to teaching the implementation of the CE in companies, since it shows that through the methodology presented, implementation projects can be developed in postgraduate classes.

scholarly journals Small business and its place in promoting sustainable development

2021 ◽  
Vol 250 ◽  
pp. 06007
Author(s):  
Elena Korneeva ◽  
Natalia Skornichenko ◽  
Tatiana Oruch
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Small Business ◽  
Social Life ◽  
Small And Medium Enterprises ◽  
Global Climate ◽  
Global Changes ◽  
The Sustainable Development ◽  
Development Goals ◽  
Medium Enterprises

Sustainable development is becoming a very important issue in the 21st century. Facing global changes such as the global warming, global climate change, as well as other pressing issue, all spheres of economy and social life need to take part in mitigating them and preventing disasters from happening. Our article studies the role of the small business in the above processes and the place of the small business in promoting sustainable development through its actions, public and social awareness and responsibility. We show how even small and medium enterprises can become a decisive power in tackling the climate change and promoting green thinking and sustainable awareness. This can be achieved through enhancing social responsibility of business companies which can greatly contribute to supporting the Sustainable Development Goals (SDG) and promoting sustainable economic growth.

Implementation of Circular Practices in Small and Medium Enterprises in Developing Countries

2020 ◽  
pp. 144-166
Author(s):  
Michael Torres-Franco ◽  
Valentina Villamil
Keyword(s):  
Developing Countries ◽  
Best Practices ◽  
Circular Economy ◽  
Small And Medium Enterprises ◽  
Business Practices ◽  
Economic Agents ◽  
Production And Consumption ◽  
Medium Enterprises ◽  
The Relationship

New forms of production and consumption seek greater respect for the environment and the environment in which economic agents are. This has led to circular business practices becoming more important and generating benefits in the final product. This chapter will show the relationship between this practice and SMEs, the problems faced by these companies, and the benefits that this practice can generate for the growth and competitiveness of organizations. The chapter will show in its first part the evolution of the circular economy, and then explain the relationship between it and the SMEs, highlighting the problems and obstacles faced by these companies to implement best practices in production. Finally, recommendations are given to facilitate the implementation of this practice in companies.

scholarly journals An application of Altman Z-score model to analyze the bankruptcy risk: cases of multidisciplinary enterprises in Vietnam

2019 ◽  
Vol 16 (4) ◽  
pp. 181-191 ◽  
Author(s):  
Diep Thanh Tung ◽  
Vo Thi Hoang Phung
Keyword(s):  
Small And Medium Enterprises ◽  
Binary Logistic Regression ◽  
Z Score ◽  
Financial Reports ◽  
Bankruptcy Risk ◽  
The Sustainable Development ◽  
Financial Factors ◽  
Score Model ◽  
Medium Enterprises ◽  
The Impact

This study applied Altman Z-score model to assess the bankruptcy risk of a set of multidisciplinary enterprises of various types, mainly small and medium enterprises, with data taken from official financial reports of 180 enterprises in Soc Trang province. The binary logistic regression was employed to assess the impact of non-financial and financial factors on the bankruptcy risk of enterprises. The research findings showed that both the non-financial factors such as business area, types and size of the business, the educational level of managers and executors and other characteristics, and the financial factors (indicators) such as earnings before tax, net profit/equity ratio, earnings before interest and tax/total assets ratio, equity/total debt ratio, affect the bankruptcy risk of enterprises. Predicting the bankruptcy risk and measuring its determinants play an important role not only as an effective managing tool of the business, but also as evidence for policymakers to support the sustainable development of business.

scholarly journals Circular economy in clusters' performance evaluation

Equilibrium ◽  
2019 ◽  
Vol 14 (3) ◽  
pp. 537-559 ◽  
Author(s):  
Kristina Razminiene
Keyword(s):  
Competitive Advantage ◽  
Circular Economy ◽  
Small And Medium Enterprises ◽  
Regional Growth ◽  
Value Added ◽  
Resource Efficiency ◽  
Advanced Technology ◽  
Technology Products ◽  
Performance Development ◽  
Medium Enterprises

Research background: The value of clusters in developing advanced technology products and services as well as promoting regional growth is acknowledged by many policymakers and researchers (Lee et al., 2012). Hence, clusters are identified as enablers of the circular economy and resource efficiency in this study. Companies aim to enhance competencies and create competitive advantages in global competition and this can be achieved through pulling from a common and accessible pool of resources, information and demand for innovation which means that companies can profit from belonging to a cluster. Purpose of the article: The main aim of the article is to overview the scientific literature that addresses the circular economy, identify clusters and their role in the circular economy and suggest how small and medium enterprises could engage in a circular economy through clusters' performance development. Methods: Bibliometric literature analysis enables identifying the latest trends in scientific articles regarding a circular economy and clusters. The analytical hierarchy process (AHP) allows for composing the scheme of the cluster’s competitive advantage within circular economy. Findings & Value added: The findings suggest that resource efficiency is considered to be one of the most important ambitions and clusters can work as enablers of a circular economy for small and medium enterprises (SMEs), gaining a competitive advantage at the same time. Clusters can encourage and provide conditions in which SMEs would turn to a circular economy. The scheme of Cluster's competitive advantage proposed by the author can help cluster's coordinators, policymakers and all the concerned parties to verify the importance of clusters' involvement in the circular economy.

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