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All Journal Economy, Business, Finance, Accounting & Management Journal
Novita
Universitas Katolik Parahyangan, Bandung, Indonesia
Computer Science & IT Economics, Econometrics & Finance

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The Role of the Circular Economy in Enhancing the Competitiveness of MSMEs Syamsuri Widarman; Novita
Economy, Business, Finance, Accounting & Management Journal Vol. 2 No. 3 (2026): July: Economy, Business, Finance, Accounting & Management
Publisher : Yayasan Cinta Negara Indonesia

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Abstract

The increasing demand for sustainable business practices has encouraged Micro, Small, and Medium Enterprises (MSMEs) to adopt circular economy principles as a strategy to improve long-term competitiveness. This study aims to analyze the role of the circular economy in enhancing the competitiveness of MSMEs through resource efficiency, waste reduction, innovation, and sustainable value creation. A quantitative research approach was employed using a survey of MSME owners and managers, with data analyzed through Structural Equation Modeling (SEM). The findings indicate that circular economy practices significantly improve operational efficiency, stimulate product and process innovation, strengthen market competitiveness, and enhance business sustainability. The study concludes that integrating circular economy principles into MSME operations represents an effective strategic approach for achieving competitive advantage while supporting sustainable economic development
Co-Authors Syamsuri Widarman