Circular economy 4 business: A program and framework for small-to-medium enterprises (SMEs) with three case studies

Abstract

To address a gap in empirical evidence, this article provides case studies of three SMEs implementing circular business models through a training program. It highlights lessons for both policy makers and training providers to support uptake of CE practices in SMEs. Governments and companies increasingly recognise the importance of a circular economy to address environmental problems, maximise the value of materials used in production-consumption cycles, and eliminate waste. This article draws attention to the role that small to medium enterprises (SMEs) play in developing niche innovations to advance the circular transition, and provides insights on how SMEs can be enabled through supportive government programs and policies. We first describe the design and outcomes of a government-funded training and pilot program, ‘Circular Economy 4 Business’ that was trialled in Queensland, Australia in 2020–21. Using data obtained during the program, we provide three case studies of circular business models employed by three participating SMEs to improve circularity for important resource types (organics, textiles, packaging, and construction materials) as well as the main successes and opportunities, challenges, and barriers each business encountered. Drawing upon the multi-level perspective of sustainable socio-technical transitions theory, we examine the interdependency of cultural, market, and policy factors to highlight how governments can provide conditions that foster enable niche innovations to scale and displace established linear regimes. The significance of this study builds on the limited empirical evidence of circular business model implementation at the level of SMEs and details a novel and practical training and support program that can guide future design of circular economy programs tailored specifically for SMEs.