Systems resilience and SME multilevel challenges: A place-based conceptualization of the circular economy

This article presents a place-based systems perspective of the sustainability of small and medium-sized enterprises, exploring the multilevel challenges in transitioning towards a circular economy. We develop a conceptual model showing that, as circular economy systems and their resilience reside at the intersection of business, societal and ecosystem value, place-based coordination and cross-institutional organizing matter. Using the case of Devon and Cornwall in the south-west of England, we argue SMEs who recognize the role of placed-based societal identities and ecosystems not only become more resilient, but their considerations for community welfare and labour are intertwined with geographic-specific natural capital and the circular economy. Yet place-based circular systems are characterized by tensions and trade-offs, suggesting survival of one is dependent on the circulation of resources in another. Our contribution is to theorize the role of SMEs in place-based circular system resilience, understanding the organizational mechanisms of local cooperation and value sharing.