Adoption of circular economy practices in agricultural SMEs: A comparative study of Nepal and the UK
DOI:
https://doi.org/10.26832/24566632.2026.1101014Keywords:
Agricultural SMEs, Circular economy, Mixed method, Resource-based viewAbstract
Agricultural small and medium-sized enterprises (SMEs) face mounting pressure to adopt sustainable business models, yet their ability to transition to circular economy (CE) practices differs across institutional and resource contexts. This study addresses the limited understanding of how CE adoption unfolds in agriculture within contrasting national settings by comparing agricultural SMEs in Nepal and the United Kingdom. The purpose is to investigate the processes of establishing CE practices in these firms and determine their effects on sustainability and business performance. A mixed-methods approach was employed, combining survey data with quantitative analysis. The results show significantly higher CE awareness in the UK (61%) than in Nepal (19.4%). The outcome shows marked differences in support systems of the countries (32.7% UK vs 47.2% Nepal). Yet, technical advice was reported to be 47.2% in Nepal and 22.4% in the UK which suggests that support in Nepal is largely advisory in nature and often led by NGOs. The results of this investigation indicate that adoption patterns are determined by institutional frameworks and resource abilities: in Nepal, low levels of awareness and capacity limitations are dominant, whereas in the UK, cynicism and scale issues are predominant. Environmental outcomes are realized earlier and more regularly than the economic or social benefits. This study advances CE diffusion theory by demonstrating that early environmental gains pave the way for weighted outcomes in resource-constrained settings.
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