Work integration ambitions of startups in the circular economy

Abstract

An increasing number of studies illustrate and estimate the potential of the circular economy to create new jobs, most particularly for vulnerable groups at the labor market. This creates collaborating opportunities for Work Integration Social Enterprises (WISEs) and circular economy ventures. Since a shift to a circular economy requires new visions and strategies, startups are considered as powerful engines for the innovation processes needed to support a circular transition. Nevertheless, academic literature at the crossroads of the circular economy, work integration of target groups, and startups remains quasi non‐existent. In this paper we present results from survey‐data of startups with varying implementation levels of circular strategies, and assess their willingness to cooperate with WISEs, or to engage in other forms of target group employment. We find a strong positive relationship between the implementation of circular strategies and work integration ambitions among startups. Circular startups who need skills on production, transportation, and logistics seek collaboration with WISEs for both inner (repair and redesign) and outer circle (recycling) strategies. Our findings suggest that the circular social economy faces specific barriers that need tailor‐made enabling policies. We recommend WISEs to explicitly assess reskilling and upskilling opportunities while embracing the circular economy as a future‐proof economic activity.