The ‘circular economy’ is gaining momentum as a concept in both academic and policy circles, and circular business models have been linked to significant economic benefits. This paper identifies barriers and enablers to adopting circular economy business practices, and presents key messages for policy-makers. It draws on input from a literature review, on discussions held in the context of the GreenEcoNet project and on an analysis of two SME circular business models.
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.
The Green Action Plan (GAP), proposed by the European Commission in 2014, is aimed at helping SMEs turn environmental challenges into opportunities.