Abstract:
Waste management is increasingly becoming a global challenge due to the increase in
population leading to an increased demand for food, water, energy and other resources.
MSMEs are argued to be responsible for a bulk of environmental problems such as pollution
and waste. Transitioning to a circular economy is argued to be important approach that move
businesses away from the “take-make-use-dispose” linear business model to one that slows
or closes the resource loop allowing resources to circulate in a system for as long as they
reasonably can, while maintaining high levels of utility. The circular economy concept however
is still developing and therefore there is still limited research on the transition of SMEs in
developing countries. This research therefore aimed to provide insights into the organisational
capabilities of MSMEs transform to a circular economy, highlighting the barriers they face.
The study followed a qualitative research approach, gathering primary data through 12 semistructured
online and telephonic interviews with individuals representing MSMEs,
environmental experts and policy experts. The three groups were interviewed to establish how
SMEs in Eswatini were incorporating circular economy into their business models using
dynamic capabilities as a framework. The research further aimed to understand the
organisational barriers for the adoption of circular economy approaches.
The study found that the MSMEs were not implementing circular economy practices or
approaches due to inadequate information on how to derive value from circularity. The study
further found that circular economy did not form part of decision making for MSMEs when
pursuing new business interests due to the lack of a green mindset as well as financial,
technical, cultural, policy and capacity barriers.
The insights from this study contribute towards understanding the enablers for a sustainable
circular economy, with a focus on MSMEs. Future research in this field could focus on the
socio-environmental and socio-economic impacts of implementing circular economy
approaches in MSMEs.
