The investigation of South African MSMEs through the lens of a circular economy

Abstract

The current economic model is wasteful, linear and unsustainable and there has been a much called for transition to a sustainable development model to guide South Africa’s economic development. To guide the transition, there is growing support and buy in for a circular model that enables the circulation resources and eliminates waste. A circular model, called Circular Economy, is a sustainable development concept that addresses issues of waste. This study investigated South African Micro Small and Medium Enterprises with the use of a Circular Economy framework. The said businesses were investigated to determine what environmentally sustainable practices were occurring within the businesses and the motivation for incorporating the practices. Moreover, projections for more future clothing and textile businesses were explored and a framework for business model types was developed. The framework serves as a guideline for business models that centre on better circularity of resources, a fundamental aspect of a circular model for South Africa. Most of the MSME’s were found to be practicing strategies that extend the lifespan of products and their parts (Reuse, Repair, Refurbish, Remanufacture and Repurpose) with two MSME’s having circularity of resources with their product chains.