Industry remains one of the fundamental pillars of the European economy: it generates high-quality employment, drives innovation, and underpins territorial competitiveness. At the same time, it is also one of the sectors with the greatest environmental impact, due to intensive resource consumption and emissions associated with production processes. In this context, the circular economy emerges as a necessary alternative to the traditional linear model based on take–make–dispose. Nevertheless, its actual implementation in industry remains limited.
One of the main reasons is that the transition towards circular models does not depend solely on technology or regulation. Above all, it requires entrepreneurship: new business initiatives, innovation in business models, and the capacity to transform mature industrial sectors from within. Without companies and individuals willing to drive this change, the circular economy is unlikely to move beyond discourse and into practice.
Against this background, a recent study conducted by the University of the Basque Country analyses how the entrepreneurial environment can facilitate -or hinder- circular entrepreneurship in industry, using the machine tool industry in the Basque Country as a reference case. This region represents a territory with a strong industrial tradition. The aim of the study is not to evaluate specific firms, but to identify which ecosystem conditions foster the emergence and consolidation of entrepreneurial initiatives aligned with the circular economy.
The analysis is based on the views of experts from the business, institutional, financial, and academic spheres, using a methodology widely applied at the international level to assess entrepreneurial ecosystems. Based on these assessments, it is possible to distinguish between conditions that facilitate industrial circular entrepreneurship and others that act as structural barriers to its development.
Among the enabling factors, the importance of a strong corporate commitment to circularity stands out. For the transition to be effective, the circular economy must be understood as a strategic priority rather than merely a regulatory response. When companies integrate circularity into their long-term vision, genuine incentives emerge to innovate in processes, products, and business models.
Industrial infrastructure and the productive fabric also play a key role. The presence of consolidated industrial environments, with networks of suppliers and specialised agents, facilitates the implementation of circular practices such as reuse, repair, or remanufacturing, thereby lowering barriers to entrepreneurial activity. In addition, social and cultural norms are highly relevant, as greater social acceptance of sustainability helps to legitimise these initiatives and reduce resistance to change.
Nevertheless, the study also identifies significant constraints, particularly in the areas of education and training in the circular economy. Although technical knowledge exists, there is often a lack of competencies related to designing circular business models or integrating environmental criteria into business strategy. Difficulties in access to finance also persist, since circular projects frequently require high initial investments and involve medium to long term returns.
Beyond the specific case analysed, the conclusions are applicable to other European industrial regions. The circular economy is not implemented solely through regulation or technology, but by creating ecosystems that facilitate sustainable entrepreneurship. Ultimately, this study highlights that circular entrepreneurship must be placed at the centre of industrial strategy, not as an exception, but as a standard pathway for innovation.
Reference
- Martín-Díez, R., Saiz-Santos, M., & Araujo, A. (2025). Industrial circular entrepreneurship: supporting sustainability in the machine tool industry of the Basque Country, Spain. Management Research: Journal of the Iberoamerican Academy of Management, 23(4), 405-425. https://doi.org/10.1108/MRJIAM-06-2024-1557
PhD in Business Administration, Knowledge and Innovation from the University of the Basque Country and assistant professor at Universitat Rovira i Virgili, with research focused on sustainable entrepreneurship and the circular economy.