Conference Agenda

Despite it being well documented that small and medium-sized enterprises (SMEs) face barriers engaging in the circular economy (CE), empirical research examining these barriers across specific circular business models (CBMs) and sectors is scarce. Advancing the CE literature, this paper provides a systematic analysis of barriers across different CBMs by surveying 452 Irish SMEs in the construction, manufacturing and retail/wholesale sectors and examining the barriers to engagement in five CBM activities: (i) using secondary raw materials, (ii) taking back old/used goods, (iii) providing repair/maintenance services, (iv) selling remanufactured/refurbished goods, and (v) offering leasing/rental services. Key findings show that the primary barriers to these CBM activities vary considerably by sector. Critical barriers are also identified. For using secondary raw materials, construction and manufacturing SMEs face cost and access challenges. For taking back old/used goods, construction SMEs are deterred by a lack of business partners and revenue risks, while retail/wholesale SMEs have concerns about the quality of returned goods. For selling remanufactured/refurbished goods, construction SMEs are deterred by malfunction risks. For offering leasing/rental services, construction SMEs are hindered by high upfront investment costs and contract risks, while retail/wholesale SMEs have concerns about regulations and product standards. The paper’s findings provide valuable insights for policymakers seeking to support SME engagement in the CE. Policy implications are discussed, highlighting the need for targeted interventions to address both CBM- and sector-specific challenges.