Consumer Behavior and Circular Economy in MSMEs

This study explores the intersection of digital innovation, strategic foresight, and profitability in promoting circular economy practices within Micro, Small, and Medium Enterprises (MSMEs). By conducting a systematic review of recent literature, the research highlights how digital tools such as blockchain and IoT enhance transparency, traceability, and consumer engagement, facilitate the adoption of circular business models. Strategic foresight, including scenario planning and trend analysis, enables SMEs to align their operations with future market demands and sustainability principles, enhancing their resilience and adaptability. Profitability in circular economy contexts is achievable through premium pricing, customer loyalty, and cost efficiencies. By comparing three reputable studies from scopus database, the study emphasizes the critical role of consumer awareness and attitudes, advocating for educational initiatives, transparent communication, and community engagement to shift mindsets towards sustainable consumption. The findings suggest that integrating these elements can drive significant environmental and economic benefits for MSMEs.