MANAGING THE DEVELOPMENT OF SMALL AND MEDIUM BUSINESSES IN THE CONDITIONS OF A CIRCULAR ECONOMY: KEY CHALLENGES AND OPPORTUNITIES

Abstract

The article examines the impact of the circular economy on the development of small and medium-sized enterprises (SMEs) in Ukraine, particularly in the context of current economic and environmental challenges. The authors investigate the principles of the circular economy and their potential for optimizing resource management and achieving sustainable development for businesses. Special attention is given to the key issues faced by enterprises in this sector when transitioning to circular business models, including limited access to financial resources, the lack of appropriate infrastructure and technologies, and the need to adapt organizational structures to new requirements. The article also emphasizes the role of SMEs in stimulating innovation, creating new jobs, and contributing to the achievement of the Sustainable Development Goals (SDGs) declared at the highest level. One of the central aspects of the research is the opportunities and prospects that the circular economy offers for SMEs. Specifically, the article discusses ways to optimize resource management by implementing principles that preserve the value of products, materials, and resources throughout their entire life cycle. The authors justify the necessity of integrating these principles into the practices of small and medium-sized enterprises, noting that the application of circular approaches not only helps reduce costs but also creates new opportunities for innovation and enhancing competitiveness in international markets for goods and services. Furthermore, it was determined that an important stage in the transformation process is the integration of Ukrainian SMEs into global environmental networks, which facilitates access to new markets and attracts investment in sustainable production. The article analyzes how collaboration with international partners and organizations can help enterprises overcome local barriers and gain global recognition for their sustainable business practices. The article provides practical recommendations for businesses regarding the effective implementation of circular business models, as well as for government bodies on creating a favorable legislative and institutional environment to properly support this process.