TEFMJ Trends in Economics, Finance, and Management Journal TEFMJ 2671-3357 2671-3365 Balkan University Press 83 Research Article CIRCULAR BUSINESS MODELS: DRIVERS AND BARRIERS TO SMES IN NORTH MACEDONIA Ademi Adnan International Balkan University – Skopje 26 06 2024 6 1 35 49 CC BY-NC-ND 4.0

Running a business in an era increasingly concerned with climate change poses challenges for all stakeholders. Governments and intergovernmental organizations are enacting new regulations, compelling businesses to adapt. While some companies have proactively shifted to eco-friendly

production systems, others face pressure to change. To meet these evolving demands, businesses are exploring models that align with the circular economy. This study is aimed at exploring the drivers and

barriers to circular business models as well as the challenges small and medium sized companies face to achieve the environmental and business objectives. Through a survey conducted among small and medium-sized enterprises in North Macedonia, both closed and open-ended questions were utilized to gather insights. The findings reveal a spectrum of engagement, ranging from incorporating circular principles in product design to active involvement in material recycling. These results underscore

a growing willingness within the business community to embrace sustainable and circular business models.

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