IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i3p2546-2577.html
   My bibliography  Save this article

Unlocking circular start‐ups: A model of barriers

Author

Listed:
  • Swati Kasana
  • Meena Chavan
  • Darshana Sedera
  • Zhiming Cheng
  • Max Ganzin

Abstract

The concept of circular economy (CE) has emerged as a viable way to achieving sustainable development. Small businesses and start‐ups play a significant role in economic progress, but they also contribute substantially to environmental degradation. In this inductive qualitative study, we conducted multiple interviews with 18 founders of circular start‐ups (CSUs) in Australia to explore and understand the challenges they encountered at different stages of their development and growth. Employing grounded theory, this study unveils barriers associated with distinct phases of the CSU development and growth, categorizing them into antecedent, beginner and growth barriers. The empirical analysis paints a detailed picture of both unique and common obstacles related to the distinctive and novel positioning of CSUs in promoting CE. This research also serves as a valuable foundation for aspiring CE entrepreneurs, practitioners, scholars and policymakers.

Suggested Citation

  • Swati Kasana & Meena Chavan & Darshana Sedera & Zhiming Cheng & Max Ganzin, 2024. "Unlocking circular start‐ups: A model of barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2546-2577, March.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:3:p:2546-2577
    DOI: 10.1002/bse.3608
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3608
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3608?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wendy D. Chen, 2023. "Crowdfunding: different types of legitimacy," Small Business Economics, Springer, vol. 60(1), pages 245-263, January.
    2. Vasileios Rizos & Arno Behrens & Wytze Van der Gaast & Erwin Hofman & Anastasia Ioannou & Terri Kafyeke & Alexandros Flamos & Roberto Rinaldi & Sotiris Papadelis & Martin Hirschnitz-Garbers & Corrado , 2016. "Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers," Sustainability, MDPI, vol. 8(11), pages 1-18, November.
    3. Frank Martin Belz & Julia Katharina Binder, 2017. "Sustainable Entrepreneurship: A Convergent Process Model," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 1-17, January.
    4. Claudia Aparecida De Mattos & Thiago Lourenço Meira De Albuquerque, 2018. "Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    5. Juana Camacho-Otero & Casper Boks & Ida Nilstad Pettersen, 2018. "Consumption in the Circular Economy: A Literature Review," Sustainability, MDPI, vol. 10(8), pages 1-25, August.
    6. V.V. Gedam & R.D. Raut & Ana Beatriz Lopes de Sousa Jabbour & A.N. Tanksale & B.E. Narkhede, 2021. "Circular Economy Practices in a Developing Economy: Barriers to Be Defeated," Post-Print hal-04275963, HAL.
    7. Kris Hartley & Jasper Roosendaal & Julian Kirchherr, 2022. "Barriers to the circular economy: The case of the Dutch technical and interior textiles industries," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 477-490, April.
    8. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    9. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    10. Marie Briguglio & Leandro J. Llorente-González & Christopher Meilak & Ángeles Pereira & Jonathan Spiteri & Xavier Vence, 2021. "Born or Grown: Enablers and Barriers to Circular Business in Europe," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    11. Fehrer, Julia A. & Wieland, Heiko, 2021. "A systemic logic for circular business models," Journal of Business Research, Elsevier, vol. 125(C), pages 609-620.
    12. John-Christopher Spender & Vincenzo Corvello & Michele Grimaldi & Pierluigi Rippa, 2017. "Startups and open innovation: a review of the literature," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 20(1), pages 4-30, January.
    13. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    14. Choi, David Y. & Gray, Edmund R., 2008. "Socially responsible entrepreneurs: What do they do to create and build their companies?," Business Horizons, Elsevier, vol. 51(4), pages 341-352.
    15. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    16. Leila Abuabara & Alberto Paucar-Caceres & Toni Burrowes-Cromwell, 2019. "Consumers’ values and behaviour in the Brazilian coffee-in-capsules market: promoting circular economy," International Journal of Production Research, Taylor & Francis Journals, vol. 57(23), pages 7269-7288, December.
    17. Joep P. Cornelissen, 2017. "Preserving Theoretical Divergence in Management Research: Why the Explanatory Potential of Qualitative Research Should Be Harnessed Rather than Suppressed," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 368-383, May.
    18. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    19. Nathalia Suchek & João J. Ferreira & Paula O. Fernandes, 2022. "A review of entrepreneurship and circular economy research: State of the art and future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2256-2283, July.
    20. Willi Haas & Fridolin Krausmann & Dominik Wiedenhofer & Markus Heinz, 2015. "How Circular is the Global Economy?: An Assessment of Material Flows, Waste Production, and Recycling in the European Union and the World in 2005," Journal of Industrial Ecology, Yale University, vol. 19(5), pages 765-777, October.
    21. Hellen Lillian Atieno Dawo & Thomas B. Long & Gjalt de Jong, 2023. "Sustainable entrepreneurship and legitimacy building in protected areas: Overcoming distinctive barriers through activism," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 72-95, January.
    22. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    23. Phil Brown & Nancy Bocken & Ruud Balkenende, 2018. "Towards Understanding Collaboration Within Circular Business Models," CSR, Sustainability, Ethics & Governance, in: Lars Moratis & Frans Melissen & Samuel O. Idowu (ed.), Sustainable Business Models, chapter 0, pages 169-201, Springer.
    24. Islam, Syrus M., 2020. "Towards an integrative definition of scaling social impact in social enterprises," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    25. Patricia van Loon & Charles Delagarde & Luk N. Van Wassenhove & Aleš Mihelič, 2020. "Leasing or buying white goods: comparing manufacturer profitability versus cost to consumer," International Journal of Production Research, Taylor & Francis Journals, vol. 58(4), pages 1092-1106, February.
    26. Chen, Xiaoyun & Zou, Huan & Wang, Danny T., 2009. "How do new ventures grow? Firm capabilities, growth strategies and performance," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 294-303.
    27. Geoffrey Desa, 2012. "Resource Mobilization in International Social Entrepreneurship: Bricolage as a Mechanism of Institutional Transformation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 727-751, July.
    28. Matthew P. Johnson & Stefan Schaltegger, 2020. "Entrepreneurship for Sustainable Development: A Review and Multilevel Causal Mechanism Framework," Entrepreneurship Theory and Practice, , vol. 44(6), pages 1141-1173, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yamoah, Fred A. & Sivarajah, Uthayasankar & Mahroof, Kamran & Peña, Iker González, 2022. "Demystifying corporate inertia towards transition to circular economy: A management frame of reference," International Journal of Production Economics, Elsevier, vol. 244(C).
    2. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    3. Damini Sundar & Kaliyan Mathiyazhagan & Vernika Agarwal & Mukund Janardhanan & Andrea Appolloni, 2023. "From linear to a circular economy in the e‐waste management sector: Experience from the transition barriers in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4282-4298, November.
    4. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    5. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    6. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    7. Gabi Försterling & Ronald Orth & Benjamin Gellert, 2023. "Transition to a Circular Economy in Europe through New Business Models: Barriers, Drivers, and Policy Making," Sustainability, MDPI, vol. 15(10), pages 1-40, May.
    8. Patrick Grüning & Justina Banionienė & Lina Dagilienė & Michael Donadelli & Marcus Jüppner & Renatas Kizys & Kai Lessmann, 2021. "The Quadrilemma of a Small Open Circular Economy Through a Prism of the 9R Strategies," Bank of Lithuania Working Paper Series 96, Bank of Lithuania.
    9. Hervé Corvellec & Alison F. Stowell & Nils Johansson, 2022. "Critiques of the circular economy," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 421-432, April.
    10. Animesh Ghosh & Prabha Bhola & Uthayasankar Sivarajah, 2022. "Emerging Associates of the Circular Economy: Analysing Interactions and Trends by a Mixed Methods Systematic Review," Sustainability, MDPI, vol. 14(16), pages 1-41, August.
    11. Daniel A. Salas & Paulina Criollo & Angel D. Ramirez, 2021. "The Role of Higher Education Institutions in the Implementation of Circular Economy in Latin America," Sustainability, MDPI, vol. 13(17), pages 1-27, August.
    12. Aro, Joerabell Lourdes & Selerio, Egberto & Evangelista, Samantha Shane & Maturan, Fatima & Atibing, Nadine May & Ocampo, Lanndon, 2022. "Fermatean fuzzy CRITIC-CODAS-SORT for characterizing the challenges of circular public sector supply chains," Operations Research Perspectives, Elsevier, vol. 9(C).
    13. Nudurupati, Sai Sudhakar & Budhwar, Pawan & Pappu, Raja Phani & Chowdhury, Soumyadeb & Kondala, Mukesh & Chakraborty, Ayon & Ghosh, Sadhan Kumar, 2022. "Transforming sustainability of Indian small and medium-sized enterprises through circular economy adoption," Journal of Business Research, Elsevier, vol. 149(C), pages 250-269.
    14. Paweł Nowicki & Marek Ćwiklicki & Piotr Kafel & Janusz Niezgoda & Magdalena Wojnarowska, 2023. "The circular economy and its benefits for pro‐environmental companies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4584-4599, November.
    15. Moritz Böhmecke‐Schwafert & Marie Wehinger & Robin Teigland, 2022. "Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3786-3801, December.
    16. Lusine H. Aramyan & Gonne Beekman & Joris Galama & Sandra van der Haar & Maarten Visscher & Gertrude G. Zeinstra, 2021. "Moving from Niche to Norm: Lessons from Food Waste Initiatives," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    17. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    18. Antonella Zucchella & Pietro Previtali & Roger Strange, 2022. "Proactive and reactive views in the transition towards circular business models. A grounded study in the plastic packaging industry," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1073-1102, September.
    19. Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Inés Suárez-Perales & Dante I. Leyva-de la Hiz, 2019. "Is It Possible to Change from a Linear to a Circular Economy? An Overview of Opportunities and Barriers for European Small and Medium-Sized Enterprise Companies," IJERPH, MDPI, vol. 16(5), pages 1-15, March.
    20. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:3:p:2546-2577. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.