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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM64604

IMPACT OF CIRCULAR ECONOMY PRACTICES ON MICRO BUSINESS PERFORMANCE

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM64604

Volume:

10 |

6 |

Jun 2026

Pages:

1-7

Publication Frequency:

Monthly (12 issues per year)

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Not assigned

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

MD

Manjula D

Research Scholar School of Commerce, Finance and Accountancy St. Aloysius (Deemed to be University) Mangaluru – 575003, Karnataka, India

St. Aloysius (Deemed to be University) Mangaluru – 575003, Karnataka, India

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DSA

Dr. Shobha Anchan

Assistant Professor St. Aloysius (Deemed to be University) Mangaluru – 575003, Karnataka, India

St. Aloysius (Deemed to be University) Mangaluru – 575003, Karnataka, India

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Abstract

Micro entrepreneurs constitute a vital segment of local economies by supporting employment generation and grassroots economic activity. Despite their significance, limited empirical attention has been given to their engagement with sustainability-oriented practices, particularly within the framework of the circular economy. This study investigates the extent of adoption of circular economy practices among micro entrepreneurs and examines their impact on business performance. Employing a survey-based research design, primary data were collected from micro entrepreneurs operating in both rural and urban areas of Dakshina Kannada district. Circular economy initiatives were analysed through dimensions such as material reuse, waste reduction, recycling, energy-saving and operational efficiency activities. Descriptive and inferential statistical techniques were applied to identify and assess the circular economy practices adopted in their day-to-day business activities and to examine the relationship between circular economy initiatives and micro business performance. The findings reveal a positive and significant association between circular economy practices and business performance among micro enterprises. By providing context-specific empirical evidence, the study offers policy-relevant insights for fostering sustainable practices among micro entrepreneurs and support programmes targeting grassroots entrepreneurship.

KEYWORDS

Circular economy Micro enterprises Business performance.

Cite This Article

Manjula D, Dr. Shobha Anchan, "IMPACT OF CIRCULAR ECONOMY PRACTICES ON MICRO BUSINESS PERFORMANCE," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 6, pp. 1-7, Jun 2026.

Full Article/Conclusion

This study investigated the relationship between circular economy practices and micro business performance in Dakshina Kannada. The results confirm that core circular practices material reuse, waste reduction, recycling, and energy saving significantly enhance business performance, with waste reduction showing the strongest adoption. The findings extend circular economy literature to micro enterprises in a developing economy, demonstrating that simple, low-cost practices can yield substantial performance benefits. Policy efforts should therefore promote operationally feasible circular practices. The study is limited by its cross-sectional design, single-district focus, and self-reported data. Future research should employ longitudinal and multi-region analyses.

References

Arruda, E. H., et al. (2021). Circular economy: A brief literature review (2015–2020). Journal of Cleaner Production, 286, 125490. https://doi.org/10.1016/j.jclepro.2020.125490 Bassi, A. M., Tan, Z., & Kumar, P. (2022). Circular economy practices and sustainability outcomes in small and micro enterprises. Journal of Cleaner Production, 338, 130553. https://doi.org/10.1016/j.jclepro.2022.130553 Bassi, L., & Dias, J. G. (2022). Circular economy in small and medium-sized enterprises in Europe: A firm-level analysis. Business Strategy and the Environment, 31(3), 1203–1218. https://doi.org/10.1002/bse.2924 CITAKonsultindo. (2024). Literature review of achieving sustainability through circular economy practices in MSMEs. International Journal of Economics, Business and Innovation Research, 3(2), 45–59. Dey, P. K., Malesios, C., Chowdhury, S., Saha, K., Budhwar, P., & De, D. (2022). Adoption of circular economy practices in small and medium‑sized enterprises: Evidence from Europe. International Journal of Production Economics, 248, 108496. https://doi.org/10.1016/j.ijpe.2022.108496 Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005 Pieroni, M. P. P., McAloone, T. C., & Pigosso, D. C. A. (2019). Business model innovation for circular economy and sustainability: A review of approaches. Journal of Cleaner Production, 215, 198–216. https://doi.org/10.1016/j.jclepro.2019.01.012 Reim, W. (2025). Leveraging ecosystem strategies for circular business model implementation in SMEs. Organization & Environment. https://doi.org/10.1177/10860266251325247

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6/8/2026

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