European Sustainable Business Federation Paper
Small and medium sized enterprises (SMEs) hold the key to the circular economy. With a total number of 22.5 million in the EU, SMEs are widely recognised as the backbone of our economy. Given their economic and environmental importance and their potential to bring radical, disruptive and highly necessary innovations to the market, they are vital players in the transition to a new economy that is low-carbon, circular and inclusive. While targeting multinationals in the most polluting sectors to create mass scale is valid and necessary, it covers less than half of the total picture because SMEs have the largest footprint and are much better at realising sustainable solutions.
