Author(s):
Farrukh Bashir, Areej Fatima*, Mannan Saif, Zeeshan Afzal
Corresponding Author: areejfatima8033@gmail.com

Abstract:

Growing environmental pressures, resource scarcity and increasing waste generation have made the search for economic models that could support sustainable development without compromising sustainable economic productivity more intense. Within this context, various concepts such as circular economy approaches as well as sustainable entrepreneurship have developed as complementary approaches to reduce environmental impacts and increase efficiency of resources. This study analyzes how circular business models developed by sustainable entrepreneurs in emerging economies have the potential to scale to a larger economic and environmental impact. The study has used a theory-driven systematic literature review using exclusively peer-reviewed studies and policy reports related to circular economy, sustainable entrepreneurship, digital transformation and sustainability governance. Relevant sources have been analyzed through thematic synthesis to consider the reoccurring constructs, mechanisms, and contextual factors that influence the scale of circular ventures. The analysis combined insights from circular business model theory, dynamic capability perspectives and ecosystem governance literature and digital transformation research. The findings suggest that circular scaling is influenced by the interplay of four main factors, entrepreneurial and organizational capabilities, circular business model architecture, ecosystem and institutional enablers, and digital and technological infrastructure. Dynamic capabilities and frugal orientation to innovation help entrepreneurs to design adaptive circular models and supportive policy environments, coordinated supply chain relationships and participation of social economy actors enhance the ecosystem conditions for expansion. Digital technologies such as artificial intelligence, blockchain or Internet of Things systems further increase scalability by improving traceability, coordination of operations and lifecycle management.

Keywords:
Sustainable entrepreneurship, Circular economy, Circular business models, Emerging economies, Digital transformation, Circular scaling, Sustainability governance, Frugal innovation

Acceptance Date:
January 12, 2026

Copyright (c) 2026 Farrukh Bashir, Areej Fatima, Mannan Saif, Zeeshan Afzal. Published by Falcons Journal of Advanced Research (FJAR).

This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0) .