Scaling Circular Business Models: A Mixed-methods Study of European Waste Management Startups

Scaling circular business models (CBMs) are critical for advancing the circular economy (CE), yet waste management startups face persistent challenges in achieving scalability. This study examines how European Union (EU) waste management startups design and scale CBMs, addressing a key gap in empirical research on CBM innovation. A mixed-methods approach is applied, combining case studies of 12 European startups with 5 semi-structured interviews conducted with industry experts across multiple EU countries. The findings identify key enablers of scalability, including modular technological design, digital platforms and strategic partnerships, while also highlighting significant barriers such as high capital intensity, regulatory fragmentation and organizational immaturity. Results show that digital and platform-based models scale more rapidly due to lower infrastructure requirements, whereas deep-tech solutions face constraints despite their higher direct environmental impact. The study further emphasizes the dual role of EU policies as both drivers and obstacles to scaling. These insights contribute to the literature on CBMs and provide actionable implications for entrepreneurs and policymakers seeking to accelerate scalable CE solutions in the EU waste management sector.