Individual entrepreneurial factors affecting adoption of circular business models: An empirical study on small businesses in a highly resource-constrained economy

The adoption of a circular business model by entrepreneurs is an alternative and innovative way of minimizing wastage and increasing operational efficiency. While existing literature focuses on the suitability of the circular economy to the business models of large organizations, there is a dearth of empirical and quantitative research on the adoption of the circular business model by small and medium-sized enterprises in poor and resource -constrained economies. This study addresses these gaps by quantitatively examining the role of individual entrepreneurial factors that determine the adoption of circular business models. Using self-administered ques-tionnaires distributed to 361 small business owners, we use the Logistic regression model to test the relationship between individual entrepreneurial factors and the adoption of circular business models. We find that while risk -taking and innovativeness significantly affect the adoption of circular business models, self-efficacy and proac-tiveness show insignificant effects. By examining the individual entrepreneurial factors affecting the adoption of the models, we offer both theoretical and practical implications for researchers and practitioners. We recommend the implementation of new policies to promote circular business models as a less risky form of investment, including higher investment in emerging technologies such as internet-of-things (IoT) and digitalization to create a circular supply chain, reduction in entrepreneurial risk, improvement in the entrepreneurs' self-efficacy; and creating pull-enforcement demand by boosting awareness about the importance of circular business models among customers. This would encourage entrepreneurs to create more innovative circular products and services.