One of the most significant barriers is financial limitation, as the transition to a circular economy requires substantial initial investment. Companies are required to redesign products, upgrade technologies, and introduce new processes such as remanufacturing and recycling, while the economic benefits are often uncertain. As a result, firms are not always confident that such investments will be profitable in the long term. Consequently, many companies are unwilling to take the financial risk (Hetherington et al., 2024). This challenge is particularly significant for small and medium-sized enterprises, which typically have more limited financial resources.
Another key barrier relates to technology and product design. Many existing products are not designed for circular use, making disassembly, repair, and reuse more difficult. In addition, companies often lack access to appropriate technologies and technical expertise, which limits their ability to implement circular strategies effectively (de Jesus & Mendonça, 2018). Without suitable design and technological support, circular processes can become inefficient or overly costly.
Supply chain complexity is also a major issue manufacturing companies face. The circular economy requires reverse logistics systems, in which products are collected after use and returned to the production cycle. This process depends on strong collaboration between various actors, including suppliers, customers, and recycling partners. However, modern supply chains are often global and complex, making coordination more difficult and increasing operational challenges (Kirchherr et al., 2018).
In addition, companies face organisational and cultural barriers. The transition to a circular economy requires changes in business models, working practices, and employee skills. Many organisations are accustomed to traditional linear production systems, and employees may resist new approaches. There is often also a lack of knowledge and experience related to circular economy practices, which slows down implementation (Rizos et al., 2016).
Market and regulatory conditions can also limit the adoption of the circular economy. Consumers may have low trust in remanufactured or recycled products, which reduces demand. At the same time, policies and regulations are not always clear or consistent, creating uncertainty for companies and discouraging long-term investments (Kirchherr et al., 2018).
In conclusion, to support this transition, it is necessary to improve technological development, increase knowledge, and establish more stable and supportive policy frameworks.