Recent interests are shifting to business model innovation for a CE and decision making, as seen in the literature review and case study work by [22]. Prior work with a single case study by [23] shows that small manufacturing firms experience more challenges when implementing CEBMs than large firms. However, the implementation of CEBM innovation in small and medium material reuse firms provides an opportunity for future research [24], calling for further examination of CEBM innovation at the firm level. A recent literature review by [25] argued for theoretical research on how contextual factors and managerial practices are linked when implementing CEBM innovation. However, we know little empirical research exists regarding how material reuse firms transform their businesses using CEBM innovation [26]. Understanding success factors and obstacles provide new opportunities for practitioners and researchers to transition conditions in small and medium enterprises. Building upon [22], we aim to explore the success factorsand obstacles that facilitate or hinder the implementation of CEBM innovation. This study examines the following primary research question: How do small-medium enterprises develop and scale a CE business model implementation at a material reuse firm level? We employ a qualitative approach while conducting semi-structured interviews with managers of a successful CE material reuse firm. To explore these key factors and CE strategy, we interviewed all the managers at our case study firm, Construction Junction (CJ). CJ is a salvage, second hand, material reuse warehouse and retail outlet with expertise in deconstruction and recycling. This firm provides an interesting empirical context with thirty employees and eight managers because CJ has a strong social and environmental impact in Pittsburgh, Pennsylvania. This state has some of the lowest landfill costs for the disposal of building and office waste at the state level in the United States (U.S.). Our research represents a timely attempt to consider the micro context of a successful SME in the U.S. when many manufacturing SMEs are trying to develop businesses as part of an emerging CE. This business was founded in 1999 by the Pennsylvania Resource Council as a non-profit for surplus building materials, collection, and selling of these materials. CJ is a leading CE material reuse firm that helps deconstruct building sites and supplies recycled building materials, appliances, and hard and soft goods, such as doors, windows, wood flooring, art/craft, batteries, even bikes, and consumer electronics. The size of material reuse efforts differs by region; it is far smaller in the US than in Europe, which is lower yet than in Japan, partly due to the complicated nature of the European market system [23]. Nevertheless, the federal and state governments of the US are encouraging various measures and regulations to help the remanufacturing business [23]. This study provides an interesting empirical context due to CJ's strong social and environmental impact and its position as a pioneer of CEBM innovation in Pittsburgh, Pennsylvania. This state-level context is important as the cost to dump building waste in a landfill (i.e., USD 23 per ton tipping fee) is among the lowest in the country. This cost-competitive environment makes the development and growth of a CE business difficult as it competes with low-cost disposal baked into traditional linear take-make-waste economies. In addition, Pittsburgh is an excellent geographical setting for this case study for several reasons. To start, CJ is in Pittsburgh, a city within 500 miles of half the population of the U.S., experiencing a rapid increase in green business initiatives, high-performance buildings, and new business opportunities. The investigation of what occurred in our study serves as the foundation for developing a framework of how managers altered the company and revised the business model to transition towards CEBM innovation. The findings of this study have several theoretical and managerial applications.