Are SMEs Ready for the Transition Towards Circular Economy? Proposal for an Assessment Framework

Small and medium enterprises (SMEs) contribute significantly to the European GDP and have a pivotal role in the ecological transition from linear to a circular economy (CE). SMEs, however, have more trouble than bigger firms making their business models circular. This article analyses the key factors that SMEs should manage for a strategic transition towards CE. Based on qualitative content analysis on the existing literature about CE in SMEs, we identify governance, relations with stakeholders and innovation as CE key pillars. It is also found that SMEs' attitude toward them changes during the transition process. The article contributes to filling a gap in the research about SMEs' transition towards circularity and provides a conceptual framework for SMEs' self-assessment in the transition path.