Innovative Circular Business Models: A Case from the Italian Fashion Industry

Transition to a sustainable economy signed by a circular vision and culture asks firms for huge investments to innovate their own management, strategies, business models, products, and marketing approaches. The Agenda 2030 and the 17 Sustainable Development Goals (SDG) are an important framework for businesses to change their approach and contribute positively to the global movement to fight climate change. The question is what and how micro, small, and medium enterprises (MSMES) can contribute to reduce their impacts while creating more value for them and their stakeholders. This paper aims to answer to this question presenting a case study from Italy where an artisan small firm is innovating to create more positive impacts in circular terms. The focus will be on circular economy and the firms’ material and energy strategies. In doing so, the paper will try to answer the following questions: how easy is for micro and small firms to apply circular economy strategies to contribute to reduce their environmental impacts? Does their strategy coherently compose energy and material flows? The case study will refer to the fashion system in Italy.