Adoption Of Circular Economy Requires Shift In Entrepreneurial Values, AURAK Research Shows
A groundbreaking investigation conducted by the American University of Ras Al Khaimah (AURAK) has unveiled that the transition to a Circular Economy (CE) goes beyond altering business operations; it requires a deep-seated shift in entrepreneurs' fundamental values.
Dr. Tahseen Anwer Arshi, leading the study alongside Joseph Wallis, uncovered the intricate relationship between entrepreneurial values and the implementation of CE initiatives. The CE model emphasizes maximizing the reuse, repair, recycling, and refurbishing of materials to extend their lifecycle, a strategy supported by the United Nations for achieving Sustainable Development Goals (SDGs).
Shifting towards CE not only holds the promise of addressing critical environmental challenges like climate change and biodiversity loss but is also seen as an economic opportunity. Reports by Deloitte suggest that embracing CE could cut emissions by 40%, create up to 2 million jobs, and forge a market worth $2 to $3 billion in the foreseeable future. This underscores the significant role CE plays in sustainable development and job creation, positioning it as a pivotal factor in global economic and environmental strategies.
The study takes a unique stance by focusing on how certain entrepreneurial values, particularly those centered around self-interest, such as hedonism and egoism, can actually impede the adoption of CE principles. These findings are crucial as they highlight the importance of overcoming personal gain tendencies to embrace a business ethos that benefits the broader community and environment.
The research identifies self-advancing values as potential barriers to CE, suggesting a need for entrepreneurs to adopt a more altruistic and environmentally conscious approach to truly drive the shift towards sustainability.
Prof. Stephen Wilhite, from AURAK, emphasized the significance of CE in combating global issues like climate change and expressed confidence that the study's insights would inspire businesses to integrate CE into their growth strategies more earnestly. "Circular economy is a key driver of sustainability. Its adoption can mitigate many of the ills that are plaguing the world today, including climate change," Prof. Wilhite remarked, highlighting the university's commitment to advancing sustainability.
Dr. Tahseen Anwer Arshi pointed out the novelty of the research in demonstrating empirically how value-oriented obstacles can hinder CE practices' spread within the entrepreneurial ecosystem. "This study is groundbreaking because it is one of the first to empirically demonstrate how entrepreneurial value-oriented barriers can derail the diffusion of CE practices within the broader entrepreneurial ecosystem," Dr. Arshi explained.
He further noted the potential for a positive shift when entrepreneurs acknowledge the wider impact of their business practices, suggesting a path towards greater adoption of CE strategies despite initial resistance.
To facilitate this transition, the study advocates for a blend of policy instruments and societal interventions. By encouraging a culture that values self-transcendence, including altruism, environmental consciousness, and social responsibility, policymakers can play a pivotal role in fostering CE principles among entrepreneurs. These efforts could range from targeted educational programs and awareness campaigns to comprehensive policy reforms, all aimed at aligning entrepreneurial values with CE's sustainable principles.
By addressing the challenges posed by self-advancing values and offering practical recommendations, the study provides a roadmap for entrepreneurs and policymakers alike. It underscores the importance of collective efforts in promoting sustainability and resilience in the global economy, marking a significant step towards achieving a more sustainable future.
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