What are the challenges faced by MSMEs during transition to CE?

Micro, Small, and Medium Enterprises (MSMEs) face various challenges during the transition to a Circular Economy (CE), including lack of awareness, access to finance, technological constraints, and resistance to change. MSMEs often operate with limited resources and have a low level of readiness for change. They are also influenced by a linear economy that focuses on production, consumption, and disposal. The transition to CE requires a redesign of business processes and models, which can be difficult for MSMEs due to lack of expertise and knowledge. Access to finance is another barrier as MSMEs struggle to secure funds to invest in new technologies and processes. Therefore, it is essential to provide support, guidance, and resources to MSMEs to ensure a smooth transition towards CE.

This mind map was published on 21 June 2023 and has been viewed 77 times.