Startups and circular economy strategies: Profile differences, barriers and enablers

Abstract

Circular economy practices contribute to achieving sustainability and alleviating the consequences of value chain disruptions and surging prices of energy and raw materials. While startups are increasingly recognized as a powerful engine for innovation processes needed to support this transition, empirical studies on the selection and implementation of circular strategies among startups remains scarce. In this paper, we report findings from the first academic survey on circular startups (N = 165) that allows for multivariate statistical analyses, considering both personal and company characteristics, and perspectives of the entrepreneurs involved. This survey includes startups with varying degrees of implementation levels of a set of 10 circular strategies at different startup lifecycle stages. Our results suggest that younger startup entrepreneurs tend to focus on inner circle strategies, while older startup entrepreneurs rather engage in outer circle strategies or no circular strategies at all. Female startup entrepreneurs are found to be less inclined to combine multiple circular strategies, and business-to-business and business-to-government market segments tend to be frontrunners for circular business models. Circular startups mostly acknowledge sustainability and circularity as a comparative advantage, and startup entrepreneurs with a migrant background seem to be more optimistic to start a profitable circular business. Our results suggest that there is no such thing as ‘the’ circular economy startup, so we recommend policy makers to develop tailor-made solutions to support startups implementing different circular strategies.