Denis Juracka

Faculty of Operation and Economics of Transport and Communications, University of Zilina,

Slovakia

denis.juracka@stud.uniza.sk

ORCID 0009-0005-5741-185X

Progress towards sustainable activities: Principal component analysis (PCA) of SMEs in the European Union

Katarina Valaskova

Faculty of Operation and Economics of Transport and Communications, University of Zilina,

Slovakia

katarina.valaskova@uniza.sk

ORCID 0000-0003-4223-7519

Abstract. This study examines small and medium-sized enterprises (SMEs) in the European Union (EU) and their openness to circular economy practices. A cross-section of European SMEs is evaluated using data for the EU-27 taken from the Euroflash Barometer 549 (SMEs, resource efficiency, and green markets). The aim of this study is to reveal the relationship between various circular economy activities within the European Union. This objective is accomplished by means of the statistical technique known as principal component analysis (PCA), which involves the categorization of variables into dimensions. The analysis pointed to two categories of circular economy activities. According to the research results, up to 93% of SMEs implement at least one circular economy activity. SMEs that adopt strategies for the efficient use of environmental resources, particularly in water conservation, also employ energy-saving measures. PCA identified a second group prioritizing modular architectures, environmentally benign materials, and recurrent resource use. Notably, businesses focusing on water conservation appear to prioritize sustainable product design the least. In contrast, those incorporating circular economy principles into product design and manufacturing also tend to emphasize recycling and reuse.

Received: September, 2024

1st Revision: February, 2025

Accepted: June, 2025

DOI: 10.14254/2071-8330.2025/18-2/1

JEL Classification: Q01, L26, Q53

Keywords: circular economy, sustainability, sustainable activities, SMEs