A COMPREHENSIVE STUDY AND ANALYSIS OF CIRCULAR BUSINESS MODEL INNOVATION FRAMEWORKS FROM A START-UP PERSPECTIVE An assessment of multiple circular start-ups in the Netherlands

Abstract

The circular economy (CE) concept remains the most discussed topic among scholars, policy-makers, and industry professionals as an augmented pathway towards sustainability. It is a strategised shift from the existing dominant linear system where products become waste at the end of their lifecycle. Business models are considered as a key enabler for the shift from a linear to a circular economy. Most of the researches in the area seems to focus on establishes firms, and very little research is available on start-up organisations. Currently there are some frameworks suggested by scholars to enable and guide the implementation of circular business model innovation in an organisations. This study considers the BECE framework as a base, and scrutinises the business models of nine start-up firms to create an insight for start-up businesses, entrepreneurs as well as entrepreneurial programs in implementing circular business model innovation process. The method chosen for the same is, semi-structured interviews of the founders and ‘C’ level employees of start-up organisations. The interviewees were analysed to determine (i) whether the process followed by them in their circularity shift matches with the steps given in BECE framework (ii) the challenges encountered by businesses in implementing circular business model innovation process for their company (ii) their entrepreneurial motivation through the multi-dimensional typologies and opportunity-necessity framework and (iii) a practical solution to address the challenges and guide start-up businesses, entrepreneurs as well as entrepreneurial programs in structuring CBMI process.. The findings indicate that circular entrepreneurs had not followed any theoretical framework while implementing circularity concepts in their organisations, but if they look back, the process they followed matches with the steps given in BECE framework, with a few additions. Also, they repeatedly enhanced on ‘continuous evaluation of the process’ as an important part to be focused upon. Lastly, they believed that all the stakeholders are very much important while shifting your business model from linear to circular form. Recommendations are given for future research and policy guidance to further support the concept of circular start-up.