Synthesis of Literature on MSME Green Transformation Based on Triple Bottom Line for Circular Economy

Abstract

Green transformation is a strategic agenda for Micro, Small, and Medium Enterprises (MSMEs) in facing sustainability challenges, environmental pressures, and global economic dynamics. The Triple Bottom Line (TBL) approach that emphasizes the balance between economic (profit), social (people), and environmental (planetary) aspects offers a relevant conceptual framework to encourage MSMEs to shift towards circular economy practices. This study aims to synthesize literature findings related to the green transformation of TBL-based MSMEs in supporting the circular economy. The method used is a qualitative approach through a systematic literature review of scientific articles, policy reports, and relevant publications in the last ten years. The results of the synthesis show that the application of the TBL principle in MSMEs contributes positively to resource efficiency, strengthening social value, and increasing business competitiveness, although it is still faced with capacity constraints, access to financing, and policy support. This research makes a conceptual contribution to the development of sustainable green transformation strategies for MSMEs.