The perspective of SMEs on the challenges of the circular economy in the 21st century Hungary

Abstract

As the world is facing numerous global ecological issues at once, the question arises of what will help mitigate and solve contemporary matters related to resource management or climate change without devastating the economies. Fortunately, the widespread application of the circular economy would help countries worldwide simultaneously ensure economic growth without significant environmental deterioration, essentially decoupling the two factors. While Hungary’s contribution to environmental problems is not significant in absolute terms, the economic sector’s circular transition could help the country decrease its impact in relative terms and pave the path for a green economy. Nevertheless, companies, especially SMEs, tend to struggle the most with the initial phases of the shift thus it is crucial to assess the factors that prevent and support their transition.

The Circular Economy, the SMEs, and the State: How to Govern a Circular Institutional Change Process?

“…Additionally, Horbach and Rammer (2020) put emphasis on smart regulations to push firms towards novel CE practices. In this regard, green taxes could be given as an example of these smart regulations (Bajnóczki et al, 2021). The smart regulations should also contain clear definitions/rules targeting the institutionalization of the CE, and in this way, they could push the SMEs towards the CE actions.…”