Smart Transformation: Integrating Circular Economy and Digitalization in Paraguayan SMEs

I​n Paraguay, SMEs represent nearly the entire formal business sector and contribute significantly to national employment. In an increasingly competitive environment, two strategic concepts emerge as key allies for this sector: circular economyand digitalization. Far from being isolated trends, their integration offers a concrete opportunity to optimize operations, reduce costs, and build more sustainable and profitable businesses.
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The Importance of SMEs in Paraguay
According to the OECD’s 2024 SME Policy Index for Latin America and the Caribbean, micro, small, and medium-sized enterprises account for 99.5% of registered companies in the region and provide about 60% of formal employment. Their strategic importance in Paraguay is indisputable.
Strengthening SMEs means strengthening the national economy.

Circular Economy: Efficiency and Sustainability
Adopting a circular economy model allows companies to redesign processes to reduce raw material use, minimize waste, and find value in by-products previously discarded. In a country where input and energy costs are recurrent challenges, this strategy represents a direct path to efficiency.

A report by ECLAC (CEPAL) shows that implementing circular principles can reduce operating costs by 10% to 30%, depending on the sector and depth of applied changes.
In Paraguay, interest in this model is growing, as evidenced by the recent ICEX 2024 Market Study on the Circular Economy in Paraguay, which highlights the opportunity to generate local value by utilizing industrial and agricultural waste.

Digitalization: The Lever to Professionalize and Scale
Digitalization acts as a strategic enabler for SMEs. According to official data from the National Statistics Institute (INE) of Paraguay, 82% of Paraguay’s population aged 10 and over uses the internet, confirming that the local consumer is already digital.
However, many SMEs still operate with traditional schemes, manual processes, and limited online presence. In this scenario, adopting accessible digital tools — such as virtual catalogs, basic order platforms, digital inventory control, and simple reporting — allows professionalizing management, optimizing resources, and expanding commercial reach.
According to DataReportal 2025, Paraguay has 5.78 million active internet users, and it is projected that e-commerce will grow 28% annually until 2027, reaching online sales close to US$1.5 billion, according to PaymentsCMI.

Practical Strategies for Paraguayan SMEs
Integrating circular economy and digitalization does not require large investments. Some concrete actions include:

• Redesign internal processes: identify loss points, apply basic digital controls, and optimize input use.
• Digitalize channels and management: adopt simple tools for online ordering, automated invoicing, and stock control via mobile devices.
• Form strategic alliances: collaborate with other SMEs to share resources, by-products, or marketing platforms.

Real Benefits

• Reduced operational costs.
• Improved control and professionalization of processes.
• Increased reach and sales through digital channels.
• Positioning as a modern, efficient, and sustainable company.

In a context where consumers are digital and sustainability is an increasing requirement, combining circular economy and digitalization is not a trend but a strategy for survival and growth.
Paraguayan SMEs that integrate these approaches will be better positioned to compete in the current and future market.
The time to transform is not tomorrow. It is today.

Mario Contreras
 Club Networking
Análisis estratégico y desarrollo de negocios sostenibles

Consulted references: OECD (2024), PNUD Paraguay (2024), CEPAL (2023), ICEX (2024), INE Paraguay (2024), DataReportal (2025), PaymentsCMI (2025).

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