Empowering Circular Startups: Unveiling the Blueprint for Circular Business Models

Circular startups are increasingly recognized as key drivers in the transition toward a circular economy. Yet the business models
(BMs) through which these startups operationalize circularity remain poorly understood, limiting the ability of entrepreneurial
ecosystem actors to offer effective support. This study addresses this gap by developing a taxonomy that captures how startups
embed circularity into their BMs, across value proposition, value creation, and value network. Drawing on a dataset of 125
startups and grounded in BM theory, it combines conceptual synthesis, empirical coding, and expert evaluation. The resulting
taxonomy comprises 10 dimensions and 48 characteristics. Our findings show how circular startups integrate environmental
and social value creation, adopt ownership and sales models aligned with circular goals, and rely on cross-sector collaboration to
compensate for limited infrastructures. The taxonomy offers entrepreneurial ecosystem actors a practical tool to assess startup
needs, identify circularity gaps, and design targeted support strategies.