| Abstract [eng] |
With increasing environmental pollution and waste, especially in the fashion sector, and increasing political pressure on sustainability, the importance and need for a circular economy is becoming increasingly evident, and companies must look for ways to restructure their business models in accordance with the principles of a circular economy. A particularly important role is played by small and medium-sized enterprises, which make up the majority of this sector, but it is noticeable that only a small proportion of companies have been able to restructure their business models and operate in accordance with the principles of a circular economy. The literature analysis revealed that when implementing circular business models, SMEs face significant barriers: financial, consumer attraction, administrative, supply chain problems, lack of knowledge and competencies, and gaps in the legal system. It is also noticeable that most research on circular business models is focused on large companies, while there is little research on SMEs in this area. Therefore, the aim of this paper is to substantiate ways to overcome barriers to implementing circular business models in innovative small and medium-sized enterprises in the fashion sector. Objectives: 1. to reveal the issues of implementing circular business models in innovative small and medium-sized enterprises in the fashion sector; 2. to provide theoretical solutions to the barriers to implementing circular business models and ways to overcome them in innovative small and medium-sized enterprises in the fashion sector; 3. to substantiate the research methodology for implementing circular business models in innovative small and medium-sized enterprises in the fashion sector; 4. to conduct an empirical study of implementing circular business models in innovative small and medium-sized enterprises in the fashion sector and to provide recommendations. The object of the paper: innovative small and medium-sized enterprises in the fashion sector implementing circular business models. Research methods: the theoretical analysis part includes an analysis of scientific literature and information sources. The empirical research part includes a qualitative study in the form of a semi-structured interview. The results of the empirical study revealed that innovative Lithuanian fashion sector SMEs, when implementing circular business models, mostly face difficulties in attracting consumers, gaps in the legal system, administrative burden, high competition, supply chain problems, lack of sales channels, lack of knowledge and information accessibility, lack of human resources, and technological and financial barriers. To overcome barriers, companies apply various methods, the main of which are the following: consumer education, active communication, long-term relationships with consumers, building partnerships, digitalization, purchasing services on demand without hiring permanent positions, automation of administrative processes, use of EU investments, support programs, avoidance of mass production, and selection of reliable suppliers, giving priority to local suppliers.The main recommendations include cooperation with niche micro-influencers, participation in fairs and the use of pop-up stands for consumer education. It is suggested to choose local suppliers of raw materials or work directly with manufacturers in order to reduce costs and ensure supply chain transparency. It is also recommended to abandon excess raw materials so that they do not need to be stored, apply easily modifiable product models that can be adapted to each customer individually, cooperate with partners and strengthen long-term relationships with customers through additional services and a value prism. |
