Analysis of Circular Economy Model: A Qualitative Case Study of MSMEs in Samarinda
Rezki Aguswidya Utami (a*), Adisthy Shabrina Nurqamarani (b), Wira Bharata (c), Agus Prasetyo (d), Rosyid Nurrohman (e), Mukhibatul Hikmah (f)

a,b) Business Administration Department, Faculty of Law, Social, and Political Sciences, Universitas Terbuka
*rezki_aguswidya[at]ecampus.ut.ac.id
c,e,f) Business Administration Department, Faculty of Social and Political Sciences, Universitas Mulawarman
d) Public Financial Accounting Department, Faculty of Economics and Business, Universitas Terbuka

Abstract

Circular economy is an economic model designed to minimize waste and make the most of resources by keeping products and materials in use for as long as possible. This model represents a significant shift from the conventional linear economy, which often leads to environmental degradation, to emphasizing model out of waste, prolonging material use, and regenerating natural systems. This study aimed to analyze the implementation of circular economy model within Micro, Small, and Medium Enterprises (MSMEs) in Samarinda. MSMEs play vital role in local economic development. However, its adaptation to circular economy models is still unexplored, particularly in Samarinda, due to limited resources, access to technology, and awareness.

The research methodology used purposive sampling, in-depth interviews and observations with selected MSMEs which are interested in circular economy practices to know the motivations, barriers, and enabling factors influencing MSMEs^ transition toward circular economy models. Particularly to strategies such as resource efficiency, waste reduction, recycling, product life extension, and circular innovations in MSMEs context. This study also investigated how external support from government policies and community networks may facilitate or hinder the circular economic implementation.

This study contributed to the limited empirical literature on circular economy adoption in MSMEs in Indonesia, provided insights into practical approaches for sustainable business transformation. The expected findings of this study are expected to provide practical and encourage policymakers to develop supportive regulations, while also empowering MSMEs to implement circular economy practices effectively. Hence, by creating collaborative environment and enhancing awareness, these outcomes aimed to promote inclusive growth and sustainable development in Indonesia.

Keywords: circular economy, MSMEs, government policy, community

Topic: Business Transformation in the Digital Era