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<p>The transition to a Circular Economy (CE) is critical for sustainable industrial development, yet small and medium-sized enterprises (SMEs) often face challenges in measuring and benchmarking circularity performance due to resource constraints and the lack of objective assessment frameworks. This study develops an integrated, data-driven CE performance evaluation framework based on five key indicators: Eco-Design, Material Footprint, Carbon Footprint, Waste Management, and Resource &amp; Energy Conservation. The framework combines objective weighting, multi-criteria decision analysis, and multivariate statistical techniques to assess, rank, and classify SME circularity performance. The framework was applied to fifteen Indian manufacturing SMEs representing diverse industrial sectors. Results indicate that Material Footprint is the most influential CE indicator, followed by Carbon Footprint and Waste Management. The integrated analysis enabled enterprise ranking (PROMETHEE), objective weighting of CE indicators (CRITIC), performance segmentation (k-means clustering), and identification of key circularity drivers (PCA). The findings revealed clear differences in CE maturity across SMEs and demonstrated that material efficiency, Emission–Waste Trade-Off are the principal determinants of circular economy performance. The proposed framework provides a practical and reproducible approach for benchmarking SME circularity and supporting evidence-based decision-making for managers and policymakers.</p>

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Driving Industrial Sustainability: Circular Economy Metrics for SMEs

  • 期刊论文

  • 发表日期：

    2026年7月28日

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  • Raktim Dasgupta,
  • Sadhan Kumar Ghosh,
  • Arup Ranjan Mukhopadhyay

摘要

The transition to a Circular Economy (CE) is critical for sustainable industrial development, yet small and medium-sized enterprises (SMEs) often face challenges in measuring and benchmarking circularity performance due to resource constraints and the lack of objective assessment frameworks. This study develops an integrated, data-driven CE performance evaluation framework based on five key indicators: Eco-Design, Material Footprint, Carbon Footprint, Waste Management, and Resource & Energy Conservation. The framework combines objective weighting, multi-criteria decision analysis, and multivariate statistical techniques to assess, rank, and classify SME circularity performance. The framework was applied to fifteen Indian manufacturing SMEs representing diverse industrial sectors. Results indicate that Material Footprint is the most influential CE indicator, followed by Carbon Footprint and Waste Management. The integrated analysis enabled enterprise ranking (PROMETHEE), objective weighting of CE indicators (CRITIC), performance segmentation (k-means clustering), and identification of key circularity drivers (PCA). The findings revealed clear differences in CE maturity across SMEs and demonstrated that material efficiency, Emission–Waste Trade-Off are the principal determinants of circular economy performance. The proposed framework provides a practical and reproducible approach for benchmarking SME circularity and supporting evidence-based decision-making for managers and policymakers.