Proposing Circular Economy Ecosystem for Chinese SMEs: A Systematic Review

Area of Science:

• Environmental Science
• Business Management
• Sustainable Development

Background:

• Circular economy (CE) offers a sustainable alternative to traditional "take-use" economic models.
• China's small and medium-sized enterprises (SMEs), vital to its economy, largely follow unsustainable practices, harming the environment and resource availability.
• Addressing resource scarcity and environmental issues necessitates the adoption of CE principles by Chinese SMEs.

Purpose of the Study:

• To explore key barriers hindering CE adoption in Chinese SMEs, including time, human resources, and finance.
• To identify enablers that facilitate CE adoption, such as networks, innovation, and reputation.
• To propose a CE ecosystem model for policymakers to inform CE legislation and regulation.

Main Methods:

• Systematic review approach.
• Thematic analysis to identify internal and external barriers and enablers.
• Development of a conceptual CE ecosystem.

Main Results:

• Identified specific barriers: lack of time, human resources, and finance.
• Highlighted key enablers: established networks, innovation capacity, and positive reputation.
• Proposed a CE ecosystem framework outlining key actors and their roles.

Conclusions:

• Chinese SMEs face significant obstacles to CE adoption but possess identifiable enablers.
• A structured CE ecosystem approach can guide policymakers in fostering sustainable practices.
• Implementing CE is essential for balancing economic growth with environmental sustainability in China.