Abstract

Abstract

Abstract
The Circular Economy, an alternative to the linear make-use-dispose system, promotes sustainable development through novel business models. Thus, Circular Business Models emerge as systems that minimize resource input and waste by slowing, closing, and narrowing material and energy loops. Circular Startups play a crucial role in the transition to a Circular Economy. Despite their significance, there is a research gap in how these companies scale. Moreover, the slow transition is attributed to the limited scalability of Circular Business Models, which leads to the need to scale current practices. The present study aims to fill this gap by defining a typology of scalability strategies employed by circular startups. A qualitative case studies methodology is adopted, using document analysis and semi-structured interviews conducted in the context of the European project SoTecIn Factory. This research identifies five scalability strategies used by Circular Startups-impact, commercial, ecosystem, institutional and cultural-with the commercial strategy being the main focus in terms of growth approach. The findings underline a strong commitment across the observed value chains to minimize environmental impact, enhance social welfare, and foster economic growth. Other key findings reveal the presence of R-imperatives across different value chains, leading to industry-specific approaches. In addition to the theoretical contribution, this research can support sustainable growth by practitioners in their scaling efforts, thus, accelerating the circular transformation. © 2025 The Authors.

Abstract