Digitalization, ESG Reporting, and Circular Economy: Accounting Challenges for Women-Led SMEs

This conceptual and analytical study examines how digitalization may reduce the cost and complexity of ESG and circular economy reporting for women-led SMEs within the evolving EU sustainability reporting framework. Particular attention is given to selected contextual examples from the Danube Region. Using a conceptual accounting approach grounded in EU regulatory documents, the academic literature, and prior bibliometric research, it identifies four key challenge domains: measurement, valuation, disclosure, and professional judgment. The analysis is complemented by an exploratory public data illustration based on publicly available documents and illustrative cases of women-led SMEs from the Danube Region. The empirical illustration is intended solely to contextualize and demonstrate the practical visibility of the proposed accounting domains rather than to validate the conceptual framework statistically. It develops an accounting-oriented problem matrix linking these challenges to digital enablers such as data platforms, automation tools, and traceability technologies. The findings suggest that digital accounting capabilities may support more efficient, reliable, comparable, and scalable ESG reporting. A conceptual framework is proposed, connecting regulatory drivers, digital accounting capabilities, and reporting outcomes, including enhanced assurance readiness and potentially improved access to finance. The study also outlines practical recommendations, including minimum viable ESG datasets and a staged digital adoption approach, alongside policy implications related to harmonized data requests and targeted capacity-building for SMEs. The study contributes to the literature by integrating ESG reporting, circular economy, digitalization, and gender-related constraints affecting women-led SMEs within an explicitly accounting-centered analytical framework.