Enabling Circular Economy in African Economies: Identifying Skills for Circular Business Models in Start-Ups

Abstract

The Circular Economy (CE) offers a sustainable approach to resource management, but its implementation in African economies faces challenges. This study explores the skills required by circular start-ups (CSUs) in Africa to operate Circular Business Models (CBMs). While existing literature identifies the importance of skills in CE, there is a gap in empirical studies focusing on skill development for CBMs in Africa. Using an abductive research approach, this study employed qualitative methods through interviews with 30 CSUs across nine African countries. The research develops a skill taxonomy specific to CSUs operating across African economies by identifying needed skills and understanding external factors influencing them. Findings show that all skills from the baseline taxonomy are essential, with added emphasis on circular literacy and adaptability. Skills like material analysis and value chain collaboration, traditionally seen as general, are reclassified as circular skills crucial for CSUs. Significant skill gaps are noted due to educational misalignment, economic factors, and the novelty of CE in Africa. CSUs address these gaps through in-house training, educational collaborations and role flexibility. This research highlights the importance of internal capabilities and adaptability in CSUs, offering practical insights for entrepreneurs, policymakers, and scholars to support the growth of CSUs in Africa. Further research is encouraged to advance CE practices in diverse contexts.