In addition to fostering economic growth, the circular economy (CE) concept has become a powerful transformative tool in tackling urgent global concerns like waste management, greenhouse gas emissions, and unsustainable resource usage. The adoption of a circular economy is not only necessary but also has significant potential to spur sustainable growth in Indonesia, where Micro, Small, and Medium-Sized Enterprises (MSMEs) make up the majority of the business environment. With 99.9% of all businesses classified as MSMEs, these businesses employ more than 97% of the workforce and account for more than 60% of the country’s GDP, making them the backbone of Indonesia’s economic development. The integration of sustainability components as a fundamental aspect of Micro, Small, and Medium Enterprises (MSMEs) represents a significant endeavour aimed at transforming the economic landscape in pursuit of both immediate and long-term objectives. To gain insight into these phenomena and aspirations, in-depth interviews are employed, emphasising the analysis of case studies from five MSMEs led by female. This study also delineates the support mechanisms, challenges, and policies aimed at facilitating these initiatives. In this investigation, both inductive and deductive approaches were employed to attain a holistic comprehension primary data from five entrepreneurs, whose enterprises have embraced circular economy (CE) principles, navigated their challenges while leveraging opportunities. The bibliometric analysis deductively indicates understanding towards current literatures which are related to green and inclusive MSMEs and shows the novelty opportunities. Meanwhile, the result of in-depth interview and observation used as a basis for inductive techniques aim for understanding perceptions of the actors. Both inductive and deductive methodologies were rigorously employed to enrich the understanding of how five entrepreneurs, whose enterprises have incorporated circular economy principles, will be elaborated upon in conjunction with the results of the bibliometric analysis concerning MSMEs that have adopted circular economic principles. In this research, the uses of bibliometric analysis by drawing literatures from Scopus database as one of the largest reliable and largest databases provided us broad understanding on the MSMEs condition whose aim is to focus on circular economy activism. This data, in parallel, is then used as the basis for thematic analysis to understand the phenomenon of what motivates, supports, challenges faced by MSMEs in practising a green and inclusive economy. In conclusion, Indonesia has a unique chance to reduce environmental effects while promoting economic growth and social integration through the adoption of a circular economy model, with special focus on MSMEs. Considering the crucial role that MSMEs occupy within Indonesia’s economic framework, their successful transition to a circular economy can significantly bolster the nation’s sustainability objectives. By inserting the paradigm of sustainability, MSMEs in Indonesia may strengthen their resiliency and competitiveness.