FROM CARBON TO CIRCULAR: INNOVATING A CIRCULAR ECONOMY-BASED STARTUP BUSINESS MODEL IN THE MIDST OF THE GLOBAL CLIMATE CRISIS

Abstract

The global climate crisis necessitates a paradigm shift in business practices, one of which is through the implementation of a circular economy. Startups in Southeast Asia have significant potential to become agents of change by developing sustainable business models. Objective: This study aims to explore the innovative circular economy-based business models implemented by startups in Southeast Asia and to understand the challenges and strategies faced in their implementation. Method: This research adopts a qualitative approach with a case study design. Data was collected through semi-structured interviews with startup founders and analysis of related documents. The sample consists of 10-15 startups that have applied the principles of circular economy. Results: Findings show that startups innovating in circular economy-based products and services not only reduce environmental impact but also create significant economic value. However, challenges such as low consumer awareness, limited access to resources, and regulatory complexities remain obstacles. Education and collaboration strategies with various stakeholders proved effective in overcoming these challenges. This study provides in-depth insights into innovative practices within the startup sector and offers strategic recommendations to accelerate the transition towards a circular economy in Southeast Asia