Abstract
The transition from a linear to a circular economy (CE) is critical for sustainable development, yet its implementation in Small and Medium-sized Enterprises (SMEs) in developing countries presents unique challenges. This study addresses the significant gap in context-specific frameworks for CE adoption within the Philippine manufacturing sector, where SMEs constitute a vital economic backbone. Employing a mixed-methods approach, including in-depth interviews with 30 SME owners/managers and industry experts, followed by a survey of 150 manufacturing SMEs, the research identified key barriers such as high initial investment costs, lack of technical expertise, limited access to financing, and insufficient policy incentives. Conversely, enablers like strong leadership commitment, potential for cost savings, and growing market awareness were highlighted. Synthesizing these findings, a novel, multi-stage framework for CE implementation in Philippine manufacturing SMEs was developed. This framework emphasizes localized strategies, capacity building, supply chain collaboration, and targeted policy support. The study contributes significantly by providing a practical, evidence-based roadmap tailored to the unique socio-economic and regulatory landscape of the Philippines, fostering resilient and sustainable industrial practices.
