Barriers and drivers for enterprises to transition to circular economy

Key points:

• Technical and knowledge barriers are the major hindrances for enterprises to transition to circular practices. Other barriers are financial, including financial structures within enterprises, lack of external financial support from banks and high upfront costs, lack of regulatory support (in form of policies and incentives), and lack of institutional and societal support.
• Availability of information via the internet, peer advice and trainings has been identified as one of the major drivers that supports enterprises’ transition to circular practices. Other drivers include consumer, supplier and investor support, as well as regulatory support.

This brief aims to provide an overview and discussion of barriers and drivers for enterprises to adopt circular economy practices. The brief shares key findings from our research, which involved a literature review, an online survey with enterprises in the Southeast Asian region, and an in-person workshop discussing circular practices with private companies and other circular economy stakeholders.