Evaluating the Role of Business Incubators in Promoting Circular Economy Models among Startups

Abstract

The circular economy (CE) concept is increasingly recognized globally as a paradigm for sustainable development. Startups play a crucial role in developing and implementing circular solutions, yet they often face significant challenges due to limited financial resources, expertise, and infrastructure. Business incubators have emerged as key facilitators in supporting the adoption of circular economy practices by providing early-stage resources and support. This study examines the role of business incubators in promoting circular economy models among startups, focusing on the incubation techniques and resources that are most effective in fostering circular entrepreneurship. Utilizing a mixed-methods approach, the research combines quantitative data from surveys of startups within various incubators and qualitative insights from semi-structured interviews with incubator managers. The findings reveal that incubators significantly impact the adoption of CE practices in startups, with those offering CE-specific mentorship, partnerships with sustainable resource providers, and access to industry networks having a greater influence on startup success in circular innovation. Additionally, targeted financial support and grants for CE initiatives enable startups to overcome funding challenges associated with sustainable innovation. Despite this, challenges persist, including limited financial resources and variability in CE knowledge across incubators. Policy interventions, such as targeted funding and regulatory support, could further enhance the ability of incubators to promote circular entrepreneurship effectively.