Circular Entrepreneurship in a Cradle to Cradle inspired start-up: an in-depth look at the motives and challenges associated with the implementation of a circular business model in Zambia

Abstract: This study examines the implementation of circular economy principles in a company operating in a developing country. Focus is put on the start-up phase of the company, where we seek to understand the entrepreneurial motive behind implementing circular, sustainable practices in the infant stage of the company. Furthermore, the methods used to construct a circular, sustainable business model are investigated and contrasted to the current literature on such practices. Relevant literature within the sphere of the circular economy and sustainability is introduced to enable for an in-depth understanding of these relatively new concepts. Current research on business model innovation and related sustainable and circular business model frameworks is discussed. Also, the novel research field of circular start-ups is presented. Up until now, current research is found to primarily focus on the implementation of circular economy principles in incumbents. Moreover, research is found to be lacking on the transition towards a circular economy in developing countries. We therefore conduct an in-depth, qualitative single-case study on clean energy company Emerging Cooking Solutions operating in Zambia to provide the field with knowledge about the implementation of circular practices in a developing context. Our findings show that these entrepreneurs adapt a holistic approach to the construction and purpose of the business model. Furthermore, we propose characteristics specific to circular start-ups. Lastly, the financial challenges connected to the implementation of circular business models in the developing context are discussed, and recommendations for future research into new financing methods are proposed.