Governments and policymakers worldwide have been setting targets to achieve an ambitious net‐zero emission target by 2050 to tackle the pressing issue of climate change. However, achieving the net‐zero emission target by 2050 depends on the factors determining the transition from traditional fossil fuel energy sources to renewables. In connection with this, policymakers have emphasised the need to transition from a linear to a circular economy. In this paper, we investigate the effectiveness of the progress towards a circular economy in reducing CO₂ emissions and promoting environmental sustainability. To do so, we use annual historical data for a panel of 29 European countries from 2000 to 2020. Using an identification strategy that adopts heteroscedastic‐based instrumental variables and addresses endogeneity issues, we find that progress towards a circular economy significantly improves environmental quality via reducing CO₂ emissions. Our findings suggest that business strategies promoting recycling and circular economy practices play an important role in environmental sustainability by reducing emissions.

The COVID-19 pandemic has highlighted and exacerbated some of the challenges that small and medium enterprises (SMEs) face in times of crisis, disrupting their operations, weakening their financial positions, and exposing them to a wide range of financial risks. While previous studies have viewed digital transformation as a vital source of innovation and productivity growth for economic recovery in SMEs, there has been limited focus on digital transformation in the regional context, with very little attention focused on women-led enterprises. This study aims to investigate (i) the determinants of perception of digital transformation among regional SMEs, and (ii) whether the gender of the SME owner or manager has an impact on the drivers of the digital transformation experiences of SMEs operating in regional Australia. Building upon the resource-based view, this study uses a unique dataset of 281 SMEs collected from a survey conducted within a regional area of Queensland, Australia. Employing Feasible Generalised Least Squares and Generalised Least Squares estimations, the study found that the perceptions of digital transformation can be explained by the use of social network platforms, innovation processes, workplace culture, and information and communication technologies. This study also found that there is a significant difference between female-led and male-led SMEs regarding their perceptions of digital transformation. This study offers two key policy and practical insights: (i) digital transformation of regional SMEs should be used as a fundamental tool for crisis recovery strategies, and (ii) the need for policymakers to mainstream gender into postcrisis transformative interventions and policies should be fast tracked.

Small and Medium Enterprises (SMEs) are particularly vulnerable to pandemics. Therefore, resilience and adaptation to shocks from pandemics such as COVID-19 are urgently needed. However, despite some coping strategies already in place among SMEs, research on their nature and effectiveness is limited. Thus, it remains unclear how effectively and sustainably documented coping strategies reduce SMEs' vulnerability and increase their resilience to pandemic risk. This article reviews academic literature for evidence of pandemic risk impacts on SMEs, coping strategies in response to these impacts, and the degree to which these strategies reduce SMEs' vulnerability and increase their resilience. According to the literature review, seven essential pandemic risk impacts were identified for SMEs - human movement restrictions, financial constraints, operational challenges, logistics difficulties, delayed business reopening, short-term policy focus and tacit knowledge workers. The study also outlined eleven critical coping strategies, notably structural or physical and behavioural changes. Study analysis reveals that resilience research among SMEs is predominantly conceptual with limited empirical evidence. To conclude, this study urges more adaptation research focused on developing new forms of pandemic risk education for SMEs addressing their complexities.