Green Entrepreneurship and Circular Economy: Drivers of Sustainable Business Models

Abstract

This paper aims to explore the key drivers of green entrepreneurship within the context of the circular economy and to highlight how this synergy fosters sustainable business models. The study synthesizes existing literature to identify critical factors that facilitate or hinder the adoption of these practices. The research employs a systematic literature review methodology. A comprehensive search of academic databases yielded relevant peer-reviewed articles published within the last five years. Thematic coding was used to analyze the collected data, identifying key themes related to drivers, barriers, and stakeholder involvement in green entrepreneurial ventures. The review reveals that a strong entrepreneurial orientation toward environmental values is a significant driver of innovation in circular economy initiatives. Furthermore, supportive regulatory frameworks, including government incentives and grants, are pivotal in promoting green entrepreneurship. The study also highlights that multi-stakeholder engagement is crucial for fostering a collaborative environment that enables resource and knowledge sharing. A major barrier identified is the lack of access to financing for early-stage green ventures. This paper provides a timely and comprehensive synthesis of the drivers and barriers at the intersection of green entrepreneurship and the circular economy. It offers valuable insights for both entrepreneurs seeking to develop sustainable business models and policymakers aiming to create a supportive environment for eco-friendly innovation.