Entrepreneurs in Circular Economy: On Motivations, Regulations, Markets and Funding

Abstract This paper contributes to the research about the pushers and inhibitors of circular economy (CE) entrepreneurs and their startups. Its purpose is deepening into the personal and social motivations of the entrepreneurs, as well as providing a critical overview on operational, day-to-day questions such as product design, funding or communication. Market issues and regulations are also taken into consideration. Five entrepreneurs in Sweden are interviewed in-depth. Thematic analysis is subsequently applied and the most relevant results are laid out and pitched against the extant literature. The selection of entrepreneurs is from the Ellen McArthur Foundation list and they represent different sectors in the Swedish economy. This country has been selected for its high promotion of sustainable values and for disseminating a circular lifestyle among its population. The research finds that motivations for CE entrepreneurship are rooted in the personal and professional experiences of each entrepreneur, though in different ways. CE companies possess a superior communication ability as well as a superior ability to get funding though, like all companies, these Swedish circular businesses are also under pressure because of demands for short-term profits. Consumer education (both industrial and final) is also needed for CE to come to its full deployment. The stringent EU regulations seen as a challenge but mainly as a chance. In general, study finds common practices with other countries but also specific practices related to Sweden or the sector in which companies operate. This study is the first comparative one among CE entrepreneurs in Sweden cutting across sectors. Therefore, it adds to the research about the motivations and operations of CE startups which has been done in other countries. Moreover, it uncovers innovative sectoral or local practices in CE which might be of interest to academics and practitioners worldwide. Overall, this article draws up a realistic picture of today's CE entrepreneurs in a northern European context.