Who is aware of circularity? Firm-level survey evidence from Uganda

This paper presents an analysis of the distribution of knowledge about the circular economy as a business concept. Knowledge is a prerequisite for the diffusion of innovation and, consequently, the incorporation of a higher degree of circularity into economic processes. The study examines the economic factors influencing the distribution of knowledge across firms. Using novel survey data from Ugandan enterprises, we present empirical evidence of circularity in a developing country context. In line with the resource-based view of the firm, the findings indicate that larger and more economically productive firms, as well as firms with proactive business strategies, are more likely to be informed about circularity. Exposure to environmental barriers, such as adverse climate change impacts or high energy intensity, does not affect awareness. Policy makers should improve environmental regulation, inform entrepreneurs about opportunities in circular business models, and facilitate the establishment of a waste sector.