Innovation is critical for small and medium enterprises (SMEs) to jump on the circular economy bandwagon, says Azim Pawanchik, innovation strategist at Alpha Catalyst Consulting Sdn Bhd. He says Berlin-based backyard start-up Kaffeeform is a good example. Julian Lechner, the founder of the company, turns coffee grounds into coffee cups when most people only think of throwing the grounds away or using them as fertiliser.