The paper addresses the growing need to achieve sustainable development, particularly focusing on the interplay between the circular economy (CE) and the Sustainable Development Goals (SDGs). It acknowledges that the 2030 Agenda aims to foster economic growth, technological progress, social development, environmental protection, and social inclusion. While the circular economy, which aims to improve the efficiency of resources and products, has the potential to facilitate social change aligned with these goals, existing literature lacks a comprehensive understanding of how companies' CE strategies influence SDG attainment. The study aims to bridge this gap by developing a framework that explores the relationship between CE actions (precedent) and SDG achievement (consequence). The study focuses on Social Economy (SE) enterprises in Extremadura, Spain, given their natural alignment with social and environmental concerns. The research seeks to answer four key questions: 1. Can SDGs be achieved through CE involvement? 2. Does sustainability and CE information facilitate SDG attainment? 3. Do CE-related professional profiles and training impact SDG achievement? 4. Do barriers and incentives to CE strategies influence SDG attainment? The novelty lies in creating an initial framework linking these two research areas and examining the CE-SDGs connection within SE enterprises, a sector uniquely positioned to contribute to sustainable development.

The study draws upon Resource-Based View (RBV) and Dynamic Capabilities (DC) theories to establish its theoretical framework. RBV posits that companies leverage valuable, rare, inimitable, and non-substitutable resources and capabilities (R&C) to achieve competitive advantage and create sustainable value. DC theory builds upon RBV, emphasizing the ability of firms to sense, seize, and reconfigure resources to adapt to changing environments and achieve sustainable results. The study uses these theories to understand how SE enterprises utilize their R&C in implementing CE activities and, consequently, contributing to SDG achievement. The review highlights existing literature linking CE and SDGs, but identifies a gap in understanding the connection between companies’ CE orientation and their ability to achieve SDGs, particularly the social and economic aspects. Previous studies largely focus on certain SDGs, overlooking the broader interconnectedness. The literature also points to the lack of a holistic conceptual framework that integrates CE with sustainability in circular business models, particularly in the context of SE enterprises. This research addresses this literature gap.

The study employs a quantitative methodology using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data from a survey of SE enterprises in Extremadura, Spain. The sample comprises 90 enterprises, representing a 36% response rate from a larger target universe of 250 enterprises. The data collection involved a structured questionnaire with two sections: (1) entity characteristics (name, type, sector, size) and (2) actions related to SDGs and CE, measured using a 7-point Likert scale. The questionnaire was administered via email. PLS-SEM was selected due to its suitability for complex models and smaller sample sizes, offering a flexible approach to analyzing structural relationships between variables. The analysis was conducted in three stages: 1. **Measurement Model Evaluation:** This stage assessed the reliability and validity of the measurement scales used for the constructs. Internal consistency was checked using Cronbach's alpha and composite reliability, with values generally exceeding the recommended threshold of 0.7. Convergent validity was examined using average variance extracted (AVE), and discriminant validity was assessed using the Fornell-Larcker criterion and the heterotrait-monotrait ratio (HTMT). 2. **Structural Model Evaluation:** This stage involved evaluating the hypothesized relationships between constructs using path coefficients (β). Significance was tested using bootstrapping with 5,000 subsamples. The R² values (explained variance) were examined to assess the model’s predictive power. 3. **Predictive Model Power:** The Q²predict values were calculated using PLS-predict procedure to assess the model's predictive capability. RMSE and MAE were used to evaluate the symmetry of prediction errors. The study utilizes two complementary models: Model 1 focuses on the relationship between involvement in circular activities, professional profiles/training, information on sustainability/CE, and people/planet-oriented activities. Model 2 introduces barriers and incentives as a predictor of observed results and benefits.

The study's results support several of the hypothesized relationships. Model 1 revealed a strong positive relationship between involvement in circular activities and both professional profiles/training and information on sustainability/CE. Furthermore, professional profiles/training significantly and positively influence people-oriented activities, but this effect is not observed for planet-oriented activities. Information on sustainability and CE also positively affects both people- and planet-oriented activities. Model 2 indicated that the presence of barriers and incentives significantly influences the overall results and benefits achieved in terms of SDGs. Specifically, the findings demonstrated the following: * **H1 (Accepted):** Involvement in circular activities directly and positively impacts professional profiles and training (β = 0.864, p < 0.001). * **H2 (Accepted):** Involvement in circular activities directly and positively impacts information on sustainability and the circular economy (β = 0.860, p < 0.001). * **H3 (Accepted):** Professional profiles and training have a direct and positive effect on people-oriented activities (β = 0.414, p < 0.01). * **H4 (Not Accepted):** Professional profiles and training do not have a direct and positive effect on planet-oriented activities (β = 0.140, p = 0.423). * **H5 (Accepted):** Information on sustainability and the circular economy has a direct and positive impact on people-oriented activities (β = 0.401, p < 0.05). * **H6 (Accepted):** Information on sustainability and the circular economy has a direct and positive impact on planet-oriented activities (β = 0.623, p < 0.001). * **H7 (Accepted):** The greater the influence of barriers and incentives, the greater the observed results and benefits (β = 0.628, p < 0.001). The R² values for the models ranged from 0.395 to 0.746 indicating substantial predictive power. Predictive power assessment using Q²predict confirmed the model's predictive capability for most constructs. These results showcase the strong link between CE initiatives and the achievement of SDGs, particularly for people-oriented activities. The positive influence of information on sustainability and circular economy on both people and planet-oriented SDGs is also a key finding. The significance of barriers and incentives highlights the need for supportive policies and resources to facilitate the effective implementation of CE practices.

The findings provide empirical evidence for the relationship between CE and SDG attainment within the context of SE enterprises. The strong positive associations between CE involvement and professional development/information transparency highlight the importance of organizational capabilities in driving SDG achievement. The significant influence of people-oriented activities underscores the social dimension of CE, aligning with the SE sector's focus on social impact. The less clear link with planet-oriented activities might indicate that more targeted initiatives are needed to achieve environmental goals within the framework. The inclusion of barriers and incentives in Model 2 adds a significant layer of realism, recognizing that the successful implementation of CE strategies necessitates supportive policies and a favorable environment. The study successfully integrated RBV and DC theories to explain how SE enterprises leverage their resources and capabilities to contribute to sustainable development. These findings provide a clearer understanding of how companies’ CE strategies can translate into meaningful contributions to SDGs, particularly focusing on people-oriented aspects. Further research is needed to explore the planet-oriented aspects more deeply.

This study contributes a novel CE-SDGs framework, empirically demonstrating the positive influence of CE strategies on SDG attainment within SE enterprises. The findings emphasize the importance of training, information transparency, and supportive policies in fostering successful CE implementation and achieving people-oriented SDGs. While the connection to planet-oriented SDGs warrants further investigation, the study provides a valuable framework for understanding the complex interactions between CE and SDGs. Future research could explore other theoretical perspectives, incorporate additional constructs, and expand the sample to include diverse contexts and company types for a more comprehensive understanding.

The study's primary limitations stem from the sample's focus on SE enterprises in a specific region of Spain. This limits the generalizability of the findings to other geographic contexts and business types. The use of self-reported data via questionnaires introduces the potential for subjective biases, as responses might be influenced by individual perceptions, cognitive biases, and response styles. The study did not fully examine potential confounding variables that might influence the relationship between CE strategies and SDG achievement, necessitating more detailed investigation in future research. Future research could enhance the generalizability by expanding the study's scope and employing more diverse data collection methods.