Elements of the transition to a circular economy for SMEs Elements of the transition to a circular economy for SMEs

Abstract

The circular economy represents a $4.5 trillion economic opportunity by reducing waste, stimulating business growth, and creating jobs. Therefore, the transition to a circular economy could boost Thailand's productivity and employment, increasing GDP by approximately 1.2 percent, especially for SMEs. This research has the objective to study the importance of each component of the social pressure variable, economic efficiency economic efficiency and circular economy. The confirmatory factor analysis was used. Data were collected from 400 small and medium-sized business operators in Bangkok and surrounding provinces. The research instrument was a questionnaire. The results of the consistency test were between 0.80-1.00.

The results show that the importance of the observed variables from highest to lowest is as follows: Waste generated in the production process is recycled, your business considers the potential environmental impact of the product and production process, the government provides subsidies and tax incentives for operations. Following circular economy guidelines and industry/direct buyers being ready to pay market margins are equally important and the market insists on producing affordable products with a minimum environmental impact. The examination of fit index for the four latent variables overall found that there was a X2 with a value between 266.76 - 973.56, X2/df. has a value of 1.65 - 2.00, passing the specified criteria that must be less than 2.00. The P-value passes the acceptable level. CFI value, NFI, GFI and AGFI have values between 0.98-0.99, passing the specified criteria, which is greater than 0.90, and RMR, RMSEA values have values between 0.050-0.058, passing the specified criteria as well.

Recommendations that waste generated in the production process be recycled. Help reduce costs Reduce environmental problems. Reduce investment problems including creating differences in products or services is therefore necessary. Create new and different product formats to create advantages and add value to products and Safe for consumers.