Circular Economy Adoption in MSMEs: Unveiling Enablers and Barriers

Purpose The study aims to explore the enablers and barriers to the adoption of Circular Economy (CE) practices in Micro, Small and Medium Enterprises (MSMEs) and examine how these factors differ between developed and developing countries. Methodology The research utilises a Systematic Literature Review (SLR) methodology to identify key enablers and barriers to CE adoption in MSMEs. The SLR process involved a detailed search and analysis of relevant academic articles from the Scopus and Web of Science databases, following the PRISMA guidelines to ensure transparency. Findings The study identifies 19 enablers and 16 barriers to CE adoption in MSMEs. Technological upgrades are the key factor helping MSMEs successfully implement CE practices, while financial constraints are the main challenge they face, according to studies from both developed and developing countries. Originality This research contributes to the existing body of literature by not only identifying the primary factors that either support or impede the implementation of CE by MSMEs but also by classifying them according to developed and developing countries to provide policymakers and MSME stakeholders with valuable insights on enhancing the implementation of CE in both countries by taking into account the particular barriers and enablers faced by each group individually.