IDEAS home Printed from https://ideas.repec.org/a/spr/circec/v4y2024i3d10.1007_s43615-024-00348-8.html
   My bibliography  Save this article

Financing and Business Models for Scaling Up Sustainable Business Networks—Building a Circular Economy

Author

Listed:
  • Tawanda Collins Muzamwese

    (University of Twente)

  • Michiel A. Heldeweg

    (University of Twente)

  • Laura Franco-Garcia

    (University of Twente)

Abstract

Transition towards a circular economy (CE) requires collaboration amongst stakeholders. Sustainable Business Networks bring together different organisations to learn and disseminate CE innovations. However, without proper financing models, networks struggle to survive and attain financial independence. In this paper, we explore the different models which are used by African networks to finance their activities. The methodological approach involved nine case studies from three African countries (Zimbabwe, Kenya and South Africa) and selected regional networks. Semi-structured interviews were undertaken with key informants of the networks, and a questionnaire was sent to each network. Content analysis of networks was undertaken, and documents were assessed for each network in order to evaluate network activities under different funding regimes. The main funding models that were observed include membership subscriptions, donor funding, conference fees for network events, consultancy services, crowdfunding and selling knowledge products. The challenge of low payments of subscriptions is common in all countries, and networks devised innovative ways of generating funds such as consultancy fees for services rendered by the network. We conclude that there is still a high level of involvement of donor agencies in financing Sustainable Business Networks. However, this donor-funded approach is failing to steer networks to sustainability beyond projects and programmes which involve networking. Based on the existing literature and the information collected during the interviews, it was possible to recommend a hybrid financing model that is based in two crucial elements, (i) on country specific actors and (ii) on ownership of the network at national level.

Suggested Citation

  • Tawanda Collins Muzamwese & Michiel A. Heldeweg & Laura Franco-Garcia, 2024. "Financing and Business Models for Scaling Up Sustainable Business Networks—Building a Circular Economy," Circular Economy and Sustainability, Springer, vol. 4(3), pages 1655-1667, September.
    • Handle: RePEc:spr:circec:v:4:y:2024:i:3:d:10.1007_s43615-024-00348-8
    DOI: 10.1007/s43615-024-00348-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43615-024-00348-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43615-024-00348-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Charles Mbohwa & Peter Rwakatiwana & Stanley Fore, 2010. "The impact of industrial clusters in greening manufacturing industry practices in small and medium scale enterprises: the case of the Old Ardbennie Industrial Cluster in Harare, Zimbabwe," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 2(1), pages 91-108.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tawanda Collins Muzamwese, 2024. "Effects of Sustainable Business Networks on the Environmentally Sound Management of Chemicals in Zimbabwe," Circular Economy and Sustainability, Springer, vol. 4(2), pages 1047-1067, June.
    2. Tawanda Collins Muzamwese, 2024. "Thirty (30) years of circular economy (CE) collaboration in Zimbabwe: success factors and barriers of networks in the Business Council for Sustainable Development Zimbabwe (BCSDZ)," Sustainability Nexus Forum, Springer, vol. 32(1), pages 1-16, December.
    3. Wei Li & Yingying Wang, 2024. "Producer services agglomeration and green growth: evidence from China," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-35, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:circec:v:4:y:2024:i:3:d:10.1007_s43615-024-00348-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.