Implementation of circular economy business models by SMEs in Bosnia and Herzegovina

Abstract

Discussion regarding circular economy has gained traction in recent years due to increase in environmental awareness, as well as companies’ quest for ways to reduce their costs. In order to gain understanding of circular economy, it is necessary to understand enablers and barriers for the implementation. Therefore, this research focuses on identifying enablers and barriers for implementation of circular economy in SMEs in Bosnia and Herzegovina, as well as points out to relevant findings regarding the importance and frequency of those factors. These findings are relevant because they will provide reference for SMEs who would like to introduce the concept of circular economy, as well as for legislators in charge of managing such initiatives. By identifying enablers and obstacles, these findings will also help stakeholders devise best strategies and policies for successful implementation, as well as foresee and plan for potential obstacles. The research included 33 SMEs located in Bosnia and Herzegovina and was conducted through e-mail delivered surveys. Research findings suggest that the CE practices are not very widely implemented among the SMEs in Bosnia and Herzegovina. According to the survey results, “Energy saving programs” was the most implemented CE practice, while “Captation/reuse of wastewater and/or rainwater” was the least implemented one. In addition, “Uncertainty about response times from public” was perceived as the highest barrier, while “Dialogue between institutions, bodies and associations of the territory for the implementation of projects on the circular economy” was perceived as the strongest enabler.