Exploring drivers and barriers for MSMEs practicing circular strategies in Yangon

This study explores the key drivers, barriers, and necessary supports which influence the adoption of circular economy (CE) practices among micro, small, and medium enterprises (MSMEs) practicing circularity in Yangon, Myanmar. Using a qualitative research approach, semi-structured interviews were conducted with MSMEs and ecosystem builders to capture firm-level experiences and system-level perspectives. The findings reveal that CE adoption among MSMEs is predominantly driven by economic and operational factors such as cost savings and resource scarcity, indicating that circular practices are largely necessity-driven rather than motivated by sustainability awareness. Market-related drivers remain limited, with branding emerging as the only notable factor, reflecting low public awareness and weak demand for circular products. The study identifies interconnected barriers across financial, technical, institutional, market, and cultural dimensions, including financial constraints, limited technical capacity, lack of government support, declining purchasing power, and low consumer awareness. Participants emphasized the need for coordinated support in the form of accessible finance, continuous capacity-building programs, market linkage opportunities, supportive policies, and improved infrastructure. The study contributes context-specific insights into circular economy adoption in a fragile and resource-constrained environment and highlights the importance of a coordinated ecosystem approach involving government, private sector actors, development organizations, and consumers to enable MSMEs’ circular transition and long-term business sustainability.