Proliferating circular start-ups: barriers, policy & future

<p dir="ltr">Circular Economy has emerged as a modern paradigm to achieve sustainable development, which aims to utilize resources to their maximum potential. The concept is based on the pillars of 4Rs – reduce, reuse, recycle, recover, which helps to save used material in order to gain its maximum potential. Start-ups that utilize circular economy in the core of their businesses are called circular start-ups. These modern start-ups are the pioneers to a business model that has the capacity to generate zero waste, while also being environmentally friendly. However, despite the benefits offered by circular economy, its adoption rate is very low; in particular, circular start-ups face immense challenges in the current business environment. Therefore, this research focuses on identifying the challenges circular start-ups face in businesses and finding solutions for those challenges, so that circular start-ups can proliferate and pave the way for a futuristic and more circular future.</p><p dir="ltr">The first study is an extensive literature review, comparing government policies related to circular economy and regular start-ups (non-circular start-ups) through a systematic qualitative analysis of 113 research papers. Utilising systems theory and paradigm interplay, this literature review finds 13 different policy elements directly or indirectly affecting circular start-ups. A futuristic policy execution model for circular start-ups along a timeline including different business phases – ideation, establishment and development – is proposed. Finally, it proposes a model for an effective circular economy policy in future, placing circular start-ups as pioneers for sustainable development.</p><p dir="ltr">The second study is an empirical qualitative study of circular start-ups in Australia, exploring barriers that they encounter in each phase of their business – antecedent, beginner, and growth. It identifies certain unique barriers faced only by circular start-ups, along with some common barriers that circular start-ups share with all other start-ups. Through in-depth interviews with 18 Australian circular start-up founders, this research finds a total of 14 different barriers and develops a model with interconnection between the barriers of different phases.</p><p dir="ltr">The third study is a qualitative document analysis of eight Australian government policy documents related to a circular economy. By comparing and critically examining policy documents at both state and national levels, this research study highlights major discrepancies and inconsistencies between the policies and how they affect different types of circular start-ups. By highlighting how these misalignments hinder the growth and scalability of circular start-ups, this research aims to support the growth of circular start-ups in future through policy improvements.</p><p dir="ltr">This thesis contributes to the literature in multiple ways. First, in a pioneer study, it fills the gap in understandings of circular start-ups, their business phases, and barriers faced by them in each phase. Second, it highlights the temporal aspect of circular start-ups, which is a feature of different types of barriers and is affected by different types of policies. By projecting a future timeline and suggesting future policy hurdles that circular start-ups might face, this research proactively informs the government in how to design modern, updated policies for encouraging circular start-ups. In addition to this, the extensive literature review, through paradigm interplay, improves the understanding of circular start-ups, and their different positioning to other types of start-ups.</p>