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Growth Strategy of Circular Startups

Author

Listed:
  • Gustavo Dalmarco
  • Ana Inês
  • Carolina de Sousa Resende
  • Ricardo Zimmermann

Abstract

Circular startups (CSUs) play a crucial role in the circular transition by developing circular business models (CBMs) that minimise resource use and narrow material and energy loops. However, empirical research on how CBMs shape growth strategies and how ecosystems enable or constrain scaling remains limited. This study aims to fill this gap by analysing the growth strategy of CSUs, addressing their circularity, business model and scalability strategies. It analysed 44 CSUs operating in packaging and plastics, textiles and food, water and nutrients value chains, using a qualitative multiple‐case design. Results show that CSUs predominantly adopt Commercial and ecosystem scalability strategies, linking replication and geographical expansion with access to partners, resources and markets, and implementing platform‐ or waste‐based CBMs. The study expands existing frameworks by conceptualising Ecosystem Strategy as a core scalability approach and clarifying its mechanisms, offering guidance for entrepreneurs and policymakers seeking to foster circular transformation.

Suggested Citation

  • Gustavo Dalmarco & Ana Inês & Carolina de Sousa Resende & Ricardo Zimmermann, 2026. "Growth Strategy of Circular Startups," Business Strategy and the Environment, Wiley Blackwell, vol. 35(6), pages 7902-7915, September.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:6:p:7902-7915
    DOI: 10.1002/bse.70567
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