Financing the Circular Transition: SMEs, Skills, and Public Governance Under Risk, Inclusion, and Structural Transformation

Dear Colleagues,

The transition toward a circular economy constitutes a paradigmatic shift in the organization of production, consumption, and value creation. Beyond environmental imperatives, this transition entails profound transformations in financial systems, entrepreneurial ecosystems, labor markets, and institutional architecture. However, the reconfiguration of economic structures toward circularity is inherently fraught with uncertainty, asymmetries in access to finance, governance frictions, and heterogeneous adjustment capacities across firms, regions, and social groups.

In this context, small- and medium-sized enterprises (SMEs), human capital formation, and public governance have emerged as pivotal levers that enable or constrain the circular transition. SMEs, while often at the forefront of eco-innovation and localized circular practices, face disproportionate financial constraints, heightened exposure to transition risks, and limited access to green financing instruments. Simultaneously, the development of appropriate skills and competencies remains a necessary condition for scaling sustainable business models and fostering inclusive labor market transformations.

At the macro-institutional level, the effectiveness of public policies, regulatory frameworks, and governance quality critically shapes the allocation of financial resources, the mitigation of systemic risks, and the inclusiveness of the transition process. The interplay among financial risk management, public intervention, and institutional capacity thus becomes central to understanding the dynamics of circular-economy adoption.

Anchored in the thematic priorities of the REACTT2026 International Conference (Tunisia, October 2026), specifically its Axe 3: Skills, Entrepreneurship, and SMEs for a Sustainable Transition, and Axe 4: Public Policies, Governance, and Inclusion in the Circular Economy, this Special Issue aims to advance research at the intersection of financial risk, SME dynamics, human capital, and governance in the context of the circular transition.

Research Themes

1. Skills, Entrepreneurship, and SMEs for a Sustainable Transition:

• New professions, retraining, and training.
• The role of SMEs, entrepreneurship, and sustainable innovation.
• The influence of digital technologies and artificial intelligence.
• Sustainable management and performance models.

2. Public Policies, Governance, and Inclusion in the Circular Economy:

• Policies and regulations (drivers and barriers).
• CSR governance.
• Public–private partnerships and social inclusion.

We invite scholars to submit manuscripts that address any of the research themes outlined above, as well as other topics aligned with the scope of this Special Issue. Submissions should provide rigorous empirical evidence, original conceptual or theoretical contributions, or high-quality comprehensive literature reviews that advance our understanding of the circular economy and sustainable transition. We particularly welcome interdisciplinary studies that move beyond linear and representative-agent frameworks to account for heterogeneity, nonlinearities, institutional complexity, and risk transmission mechanisms while offering robust, policy-relevant insights.

Dr. Mohamed Drira
Dr. Kamel Helali
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

• circular economy
• SMEs
• financial risk
• green finance
• governance
• public policy
• financial inclusion
• ESG
• sustainable development
• entrepreneurship
• human capital
• institutional quality
• transition risk
• innovation
• economic resilience