Social circular economy: an exploratory Colombian case study through the capability approach

Purpose The purpose of this study is to present a social circular economy (SCE) as a hybrid business model that combines elements from the circular economy and social business to promote sustainable development and illustrates how, through the capability approach’s conversion factors, recyclers’ capabilities are driven. Design/methodology/approach This study used a qualitative, in-depth case study approach. Data collection techniques included semi-structured interviews, participant observation and document analysis to assess the economic, social and environmental impacts in a recycler’s association based in Colombia. Findings The results of this study show that the SCE model, as evidenced within the recyclers’ association, integrates Yunus’s seven social business principles and incorporates circular strategies that extend beyond recycling, including the use of organic feedstock, circular supply, reuse, repair, refurbishment and cascading. For its part, the SDGs to which it contributes are 1, 8, 10, 11, 12, 13 and 17. Additionally, the evidenced capabilities relate to access to dignified work in a discrimination-free environment, the opportunity to be healthy, access to education and training, freedom of speech, participation in decision-making processes and being part of a community. Practical implications This study presents a potential, replicable business model for policymakers, social entrepreneurs and businesses seeking to integrate economic development with environmental and social impact. Originality/value This research advances the theoretical and practical understanding of the SCE using the capability approach, filling gaps in the literature on its implementation in emerging economies. This study provides structured insights into how SCE can inspire new business models and policy frameworks to drive sustainability, inclusion and economic growth in developing regions.