Book tip: Circular entrepreneurial ecosystems

As the EU’s Green Deal and other regulations put pressure on companies to shift to more sustainable business models, interest in the circular economy is growing. But how can businesses take advantage of circular economy opportunities to achieve sustainability goals?

This question is explored in the new book Circular Entrepreneurship Ecosystems, in which a number of international researchers examine the challenges and successes of developing circular entrepreneurship ecosystems in different parts of the world. Magnus Klofsten, Professor of Entrepreneurship at Linköping University, is one of the co-editors:

– Ten years ago, Swedish incubators barely had any focus on sustainability. Today, we see more and more support systems starting to integrate circular business models.

At the same time, he says we still have a long way to go before circularity becomes a natural part of business support and innovation programs.

– We see funders starting to set sustainability requirements, but there are still no clear incentives for companies to become fully circular. This is reminiscent of the development of gender equality requirements in innovation systems, which took time to implement but are now a natural part of the ecosystem.

Specific challenges for circular startups

Magnus Klofsten and his Linköping colleagues Wisdom Kanda and Dzamila Bienkowska have written a chapter in the book about the conditions for circular startups. Like all start-ups, there are challenges in accessing capital and growing. But there is an extra dimension.

– They cannot operate in a vacuum but must become part of a larger ecosystem,” he says, taking an example from the food industry:

– If you are developing a new product based on residual waste, say avocado pits, there needs to be an established chain of actors that can receive and process these raw materials. Without a functioning infrastructure, it will be difficult to scale up operations. And unfortunately, there is a lack of developed systems that fully support these processes, says Magnus Klofsten.

Circularity in entrepreneurship education

He also sees a role for academia to contribute to this development through research and education. In a book chapter, researchers at Lund University describe how entrepreneurship education can be designed to support circular and sustainable entrepreneurship.

– Universities are a very important player in the system, which is why Lund University has now received a grant from the Kamprad Family Foundation to work more with sustainability issues in entrepreneurship education in the future, says Magnus Klofsten.

Practical and academic perspective

The book is primarily aimed at academics and policy makers, but also has practical insights for entrepreneurs. And it is clear that interest is high from both academic and practitioner quarters.

– The book seems timely and has already attracted international interest. There are even discussions about translating it into Chinese. Sustainability and circularity are becoming an increasingly important part of international business development, says Magnus Klofsten.

Contact magnus.klofsten@liu.se

Title: Circular Entrepreneurship Ecosystems: Challenges, Opportunities and Future Trends
Author: João J. Ferreira, Magnus Klofsten and David Urbano (editors)
Publisher: Edward Elgar Publishing
Year of publication: 2025
ISBN: 978 1 03531 823 0