FACTORS INFLUENCING CIRCULAR ECONOMY IMPLEMENTATION IN SME BUSINESS MODELS: THE CASE OF SPAIN

Nowadays, Europe has to add more value to the resources it uses and make all sectors more productive. Hence, the transition to a circular economy (CE) requires a stronger link between waste reduction and resource efficiency. Small and medium- sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, creating competitive advantages, and accessing new markets. In the learning of valuing waste as a resource and apply the lessons of the natural world, in which nothing is wasted, SMEs embraces the CE to achieve sustainability. In this regard, the agro-food system plays an important role since it needs agricultural practices aimed at optimising yields and improving the natural resources, which are crucial for embracing CE. We use a mixed methodology, a survey, where 161 SMEs took part, together with six interviews to characterise the sector. The main findings point to the lack of technical and technological resources of olive oil mills, even though they consider innovation crucial to achieve a competitive advantage. Therefore, the European Union (EU) policies, in general, and the Spanish ones, in particular, should reinforce the “Green Economy” and help SMEs incorporate CE principles into their business models.