Resources and Capabilities of SMEs Through a Circular Green Economy

Green Economy, Growth And Sustainable Development

The green economy concept is called the next oxymoron after sustainable development because they overlap each other (Green & McCann, 2011). Conference on Sustainable Development (Rio+20) in 2012 agreed that in the context of sustainable development, the concept of green economy should be promoted. The transition to a green economy has economic and social justifications for public and private actors to contribute offering opportunities for investments and green procurement by providing new market-based incentives and mechanisms (Shimova, 2019; Popkova, Bogoviz, & Ragulina, 2018).

It is because the green economy prioritizes well-being for the present and for future generations and the efficiency of improved technology is not necessarily sufficient. Likewise, a green economy is essential for sustainable development (Popkova, Bogoviz, & Ragulina, 2018; Shimova, 2019), improving social equity, human well-being, reducing ecological scarcity and environmental risks. Green economy supports sustainable development aimed to replace the social and environmental costs of the current economic model that is reaching limits in terms of greenhouse gas emissions, use of natural resources, water, land, forests (Barry, 2010).