Diagnosis of the Degree of Adoption of the Circular Economy in SMEs of Cotopaxi and Bolívar and Identification of Strategic Barriers

Abstract

This study diagnosed the degree of adoption of the circular economy (CE) among SMEs in the Ecuadorian provinces of Cotopaxi and Bolívar, and identified the strategic barriers that hinder its implementation. A structured four-block survey was applied to 252 SMEs, with a valid response rate of 91%. The instrument assessed the characterization of the enterprises, the degree of adoption of the slowing, closing, and narrowing resource-loop strategies proposed by Bocken et al. (2016), the perceived barriers, and environmental accounting-registration practices; the data were processed using descriptive and inferential statistics. The results show a moderate-to-low level of adoption, with greater progress in narrowing the loop—efficient use of water, energy, and inputs—than in closing it through recycling or the reincorporation of waste. Lack of technical knowledge and accessible financing were confirmed as the main barriers, ahead of regulatory incentives and internal cultural resistance. The central finding is the gap between circular practice and its accounting registration: most SMEs do not formally document their reuse or input-saving practices, even when they are already carrying them out informally. It was concluded that the circular transition depends on enabling conditions, such as training, credit, and secondary materials markets, and that there is an urgent need to design simple accounting instruments adapted to micro and small enterprises, as a contribution to accounting education and territorial public policy.