Circular Economy and Decision Models among European SMEs

Abstract

While targeting waste reduction and maintaining the value of products and resources in
 the system as much as possible, undertaking circular economy practices at the company level is a
 way of achieving entrepreneurial sustainability. This paper explores entrepreneurial decision models
 for adopting circular economy practices, focusing on European SMEs. Decision tree models are
 applied on data from Flash Eurobarometer 441 in order to uncover business strategies in relation
 to the implementation of circular economy practices at the company level and with the optimal
 level and nature of investments in the circular economy for improving economic performances of
 companies. The main findings of the article offer a better understanding of the relation between
 characteristics of European SMEs and their decisions in the field of circular economy. Such results
 are relevant from both macro and micro perspectives, as they can be used for customizing circular
 economy programs and intervention strategies for various groups of SMEs, as well as for supporting
 sustainable entrepreneurial decisions.