Maintaining　the　sustainability　of　small　and　medium-sized　enterprises　(SMEs)　supply　chain　has　positive　impact　on　society.　Under　the　ripple　effect,　the　vulnerability　of　the　SMEs　supply　chain　and　the　collaboration　uncertainty　of　participants　have　potentially　negative　impact　on　the　sustainability　that　cannot　be　ignored.　We　consider　the　closed-loop　SMEs　supply　chain　network　design　based　on　the　risk　propagation　to　improve　the　triple　sustainability.　The　basis　of　the　simulation　model　structure　is　a　bi-level　multi-objective　mixed-integer　linear　programming　model　that　aims　to　maximise　triple　sustainability,　and　an　improved　dynamic　non-dominated　genetic　algorithm　(DNSGA2)　is　designed　to　solve　the　problem.　An　SMEs　supply　chain　for　closed-loop　manufacturing　of　lithium　batteries　in　China　was　considered.　The　results　show　that　the　centralised　SMEs　supply　chain　preform　better　when　the　supply-demand　imbalance,　and　the　distributed　network　structure　is　preform　better　in　maintaining　sustainability　when　manufacturer　capacity　imbalances.　Supply　chain　managers　should　develop　more　flexible　strategies　based　on　the　structure　of　downstream　demand,　increasing　upstream　manufacturers＇　participation　to　enhance　their　viability　and　improve　the　sustainability　of　the　supply　chain.　©　2024　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.