Beyond Circularity : Developing a Regenerative Circular Economy Framework for SMEs in Emerging Economies

Beyond Circularity: Developing a Regenerative Circular Economy Framework for SMEs in Emerging Economies is a conceptual research article that examines the evolution of sustainability from traditional linear economic models to circular economy principles and, ultimately, to regenerative business approaches. While the Circular Economy has significantly advanced resource efficiency, waste reduction, and closed-loop production systems, existing frameworks often focus on minimising negative environmental impacts rather than creating positive ecological and social outcomes. This study addresses an important gap in the sustainability literature by proposing a Regenerative Circular Economy Framework (RCEF) specifically designed for Small and Medium-sized Enterprises (SMEs) operating in emerging economies. Drawing on the theories of Circular Economy, Regenerative Economy, Sustainable Entrepreneurship, and Entrepreneurial Ecosystems, the framework integrates five interconnected pillars: Environmental Regeneration, Circular Business Innovation, Entrepreneur Ecosystem, Digital Enablement, and Social Impact. The proposed framework offers a holistic roadmap for SMEs to transition beyond resource efficiency towards regenerative business models that restore ecosystems, strengthen local communities, enhance transparency through digital technologies, and create long-term economic, environmental, and social value. The paper contributes to sustainability scholarship by extending existing circular economy theory with regenerative principles while providing practical guidance for entrepreneurs, policymakers, and development practitioners seeking to accelerate sustainable transformation in emerging economies. The framework establishes a foundation for future empirical research and provides a basis for validating regenerative business practices through real-world case studies and digital sustainability innovations.