This research publication examines the transition of small and medium-sized enterprises (SMEs) towards circular economy models, focusing on the structural, institutional and operational barriers that hinder adoption.

Drawing on empirical insights and international practices, the study provides a comprehensive mapping of the challenges faced by SMEs and highlights pathways for enabling a more sustainable and resource-efficient business environment.

SMEs represent the backbone of the European economy, yet they often lack the resources, infrastructure and strategic support required to implement circular economy practices.

Understanding these limitations is essential in order to design effective policy frameworks that do not remain theoretical but translate into real, applicable transformation.

• Identification of key barriers in the adoption of circular economy models by SMEs

• Analysis of institutional and market-level constraints

• Documentation of best practices and successful case studies

• Policy recommendations for strengthening SME participation in circular transition

The study contributes to the broader discussion on sustainable development and aligns with European priorities on circular economy and green transition.

It provides actionable insights for policymakers, institutions and stakeholders seeking to support SMEs in adapting to emerging sustainability requirements.