What is a circular entrepreneur? Understanding entrepreneurs’ experiences in order to support the circular economy

The circular economy proposes a model of economic development decoupled from environmental pressure, which aims to achieve a better balance between economy, environment and society, and which contributes to achieving sustainable development. Several research lines contribute to deepening this model, otherwise, the circular entrepreneurship is not sufficiently explored in the debate, yet it seems to be an interesting study perspective for the development of circular practices. This study aims to explore circular entrepreneurship in order to identify the enabling factors of the birth of these firms, and then to elicit information that feeds the development of circular enterprises. The study is based on a qualitative methodology with an exploratory multiple-case study, involving 11 Italian enterprises that are testing circular economy practices, selected mainly from the Italian Atlas of Circular Economy platform. Italy appears an interesting research context due to its excellent position in Europe in circularity performance; this context can provide a useful contribution to the study of circular entrepreneurship. The data collection uses direct interviews and secondary data for collecting useful information about the experiences of selected companies; the research design uses theoretical, methodological and data triangulation. The analysis demonstrates that three factors, which are strongly interconnected, can significantly influence the birth and development of circular enterprises: cross-fertilization of founders’ expertise, an open innovation approach for the development of the innovation processes, and social capital for the strategic importance of links to the local system. In addition, the study suggests that a circular firm could play a multiplier role in the development of a circular practices within local economy. By bridging existing gaps, the study suggests academic implications advancing theoretical knowledge in the enabling factors of circular entrepreneurship and highlights practical implications for policymakers in stimulating the implementation of the circular firms, supporting cross-fertilization, open innovation and social capital, and, prompts a more general political implications for a framework to facilitate the implementation of the circular economy.