Abstract

The circular economy (CE) has emerged as a vital paradigm for company management, addressing environmental stewardship, waste reduction, resource efficiency, and climate change mitigation. Following the foundational work of the Ellen MacArthur Foundation (2015), the CE has risen to prominence on the political and economic agendas of European Union (EU) member states, solidified by the EU's 2015 Circular Economy Action Plan and Package (European Commission, 2015). Consequently, businesses are increasingly integrating CE principles. This research investigates the perspectives of decision-makers on the obstacles hindering CE implementation within companies in a transition economy, Serbia. Employing the Analytical Hierarchy Process (AHP) on data from small and medium-sized enterprises (SMEs), the study reveals significant discrepancies in the perceived importance of these barriers. While SMEs identify technical information as a primary challenge, waste management decision-makers prioritize financial and institutional issues. The AHP analysis highlights "Readiness for system changes in accordance with EU directives" (global weight: 0.062) as the most influential social sub-factor, followed by "Understanding the concept of the circular economy" (0.050) and "Education about the necessity of introducing the circular economy" (0.042). These findings provide crucial insights into the main impediments to CE adoption, enabling companies to better understand the integration of CE practices. Furthermore, this research contributes to the broader application of multi-criteria decision-making in the context of the CE and the evaluation of implementation barrier significance.