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Abstract The concept of circular economy (CE) has emerged as a viable way to achieving sustainable development. Small businesses and start‐ups play a significant role in economic progress, but they also contribute substantially to environmental degradation. In this inductive qualitative study, we conducted multiple interviews with 18 founders of circular start‐ups (CSUs) in Australia to explore and understand the challenges they encountered at different stages of their development and growth. Employing grounded theory, this study unveils barriers associated with distinct phases of the CSU development and growth, categorizing them into antecedent, beginner and growth barriers. The empirical analysis paints a detailed picture of both unique and common obstacles related to the distinctive and novel positioning of CSUs in promoting CE. This research also serves as a valuable foundation for aspiring CE entrepreneurs, practitioners, scholars and policymakers.
Kasana et al. (Fri,) studied this question.