Why do SMEs Find it Difficult to Adopt Lean and Circular Economy?

Abstract

The main objective of this study was to explore the challenges facing Small and Medium-sized Enterprises (SMEs) when adopting Lean and Circular Economy during three different stages. These stages were pre-adoption, mid-adoption, and post adoption phases. First, a systematic literature review was conducted in a time frame of 2018-2022. A total of 47 articles were included where challenges stated in the literature were extracted. A qualitative approach was then undertaken for this study where semi-structured interviews with 15 experts across 10 countries and 6 continents were conducted. Results shows that the top challenges facing SMEs included lack of awareness, knowledge and understanding of the concept, lack of financial resources, lack of top management support, and difficulty in sustaining the system. After identifying the different obstacles encountered, experts proposed several solutions to help SMEs overcome them. These solutions included knowledge-sharing, government support, collaborations and benchmarking, and piloting projects.

Date of Award	Apr 2023
Original language	American English
Supervisor	Raja Jayaraman (Supervisor)