Circular Economy Adoption in Italian SMEs: Evidence from the Scatolificio Me-Cart S.r.l. Case Study

The substantial increase in raw material consumption in recent decades, together with limited attention to waste generation and its environmental impacts, has contributed to climate change, biodiversity loss and resource depletion. For a long time, a linear system based on extracting resources, producing goods and ultimately discarding them, dominated. In the context of a growing global population and rapid urbanization, moving beyond this traditional “take–make–dispose” model has become essential. The Circular Economy (CE), guided by principles such as reduce, reuse and recycle, offers an alternative approach that aims to lower production and consumption costs while delivering substantial environmental benefits. The transition toward a CE requires a fundamental shift in how organizations create, deliver and capture value. Firms are increasingly expected to adopt practices that emphasize resource efficiency, product longevity and closed-loop business models designed to minimize waste and environmental impact. Although several reviewed studies explore CE definitions, business models, supply chain integration and the drivers, practices, and challenges of CE adoption, limited research has focused on the implementation of circular economy principles within Italian SMEs. This thesis aims to address this gap by investigating how Italian SMEs- the backbone of the national economy - are approaching the Circular Economy and how its adoption influences their performance. The study provides a comprehensive overview of the CE concept, the international, European and Italian regulatory frameworks, and the main CE practices and their effects at the corporate level. It also examines reporting and assessment standards and illustrates the Italian CE landscape, with a specific focus on SMEs. Beyond the literature review, the thesis is based on the empirical case study of Scatolificio Me-Cart S.r.l., a medium-sized company operating in the packaging industry that has introduced CE practices in recent years. Through a methodology consisting of document analysis and interviews, the analysis explores the firm’s motivations for adopting these practices and the related challenges and evaluates the CE practices’ effects on its performance. The findings indicate that implementing a circular economy model within SMEs, although not always associated with immediate benefits, can generate significant opportunities for growth and competitiveness. However, stronger institutional support and targeted policy measures are needed to facilitate a broader and more effective transition for SMEs.