Dwi Narsih, Meirinaldi

Utilizing a Circular Economy in Household Waste Management MSMEs: A Case Study of Innovation in a Small Town

Introduction

Utilizing a circular economy in household waste management msmes: a case study of innovation in a small town. Innovate household waste management MSMEs in Central Java's small towns with circular economy models. See 45% income growth & 60% waste reduction. Policy recommendations included.

Abstract

Circular economy has become an alternative model in addressing household waste problems through the development of SMEs in small cities. This research analyzes the implementation of circular economy concepts in household waste processing SMEs with case studies in three small cities in Central Java. Qualitative methods with a case study approach were used to collect data through interviews and observations of 15 waste banks and waste processing SMEs. The results showed that the implementation of a circular economy in SMEs resulted in an average income increase of 45% in the 2022-2024 period and waste volume reduction of up to 60%. The business models developed include collection, sorting, processing, and marketing of recycled products. However, constraints were found in terms of access to capital, technology, and marketing. This research provides theoretical contributions in developing small-scale circular economy models and policy recommendations to support waste management SMEs.

Review

This paper presents a timely and relevant investigation into the application of circular economy principles within household waste management Micro, Small, and Medium Enterprises (MSMEs), focusing on a case study in small towns. The abstract effectively highlights the growing importance of the circular economy as a sustainable alternative to traditional waste management, particularly its potential to empower local economies through SME development. The research aims to analyze the practical implementation of these concepts, offering insights into how small-scale interventions can contribute to significant environmental and economic benefits. The choice of Central Java as a study area provides a specific geographic context, which is valuable for understanding localized challenges and successes. Methodologically, the study employs a qualitative approach through case studies, utilizing interviews and observations across 15 waste banks and waste processing SMEs. This depth of inquiry is appropriate for exploring the nuances of CE implementation at the grassroots level. The findings are compelling, indicating a substantial average income increase of 45% for participating MSMEs and a remarkable waste volume reduction of up to 60% over a two-year period (2022-2024). The abstract outlines the core business models – collection, sorting, processing, and marketing of recycled products – which are fundamental components of a circular system. Crucially, it also acknowledges practical constraints faced by these MSMEs, specifically concerning access to capital, technology, and effective marketing channels, which are common hurdles for small businesses in developing economies. The paper claims to offer both theoretical contributions in developing small-scale circular economy models and practical policy recommendations. While the abstract provides strong evidence of the empirical success and challenges, the theoretical contribution would likely stem from how these specific case studies inform broader frameworks for CE implementation in similar contexts. The identified constraints also naturally lead to practical policy implications. For a full review, deeper insight into the specific policy recommendations and the nature of the theoretical model would be beneficial. Nevertheless, the study appears to offer valuable insights for policymakers and practitioners seeking to foster sustainable waste management solutions and empower local economies through circular economy initiatives, especially in underserved small urban areas.

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