The circular economy (CE) model has been widely applied in large businesses, but very few research has been conducted on how CE may be applied in small- and medium-sized companies. Although emission of individual SMEs might not be comparable to that of LEs, the total emissions holistically have a significant impact due to large number of SMEs. Hence, the present paper aims at exploring barriers for CE transition in SMEs based on a systematic review of literature. 46 selected articles were screened according to eligibility criteria and then analyzed. According to the findings, the most frequently identified barriers are a inadequate financial resources, inadequate organizational capabilities, and a lack of regulation/standards. Potential paths for future research are also discussed.