Economy, Business, Finance, Accounting & Management Journal
Vol. 2 No. 3 (2026): July: Economy, Business, Finance, Accounting & Management

The Role of the Circular Economy in Enhancing the Competitiveness of MSMEs

Syamsuri Widarman (Universitas Katolik Parahyangan, Bandung, Indonesia)
Novita (Universitas Katolik Parahyangan, Bandung, Indonesia)



Article Info

Publish Date
30 Jul 2026

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

Copyrights © 2026






Journal Info

Abbrev

EBFAM

Publisher

Subject

Computer Science & IT Economics, Econometrics & Finance

Description

Economy, Business, Finance, Accounting & Management Journal is a peer-reviewed academic journal dedicated to publishing high-quality research in the fields of economics, business, finance, accounting, and management. Our mission is to serve as a platform for academics, practitioners, and researchers ...