Overcoming business hurdles to circularity
28 August 2025
Katie Reid, Consultant at Resource Futures
Across the UK, momentum is building around the circular economy – not just as a way to reduce environmental impact, but also as a practical business strategy that delivers clear economic and societal benefits. Circular business models can increase revenue, reduce costs, improve supply chain resilience and provide a competitive advantage (see for example recent evidence from Green Alliance, PwC, WRAP and Zero Waste Scotland).
Yet many businesses – particularly SMEs – still face real and perceived barriers to adopting circular practices. The current economic landscape is turbulent, marked by inflation, supply chain disruptions and investor caution.
With the Scottish Government’s Circular Economy Route Map to 2030 and the UK Government’s Circular Economy Taskforce, which is informing England’s strategy, there is now a critical window of opportunity to guide and empower businesses through this transition.
The cultural shift
A significant cultural shift, supported by education, is needed to embed the circular economy within the mindset of businesses, customers and society more broadly. Many people still do not understand the concept of circularity, which poses a major barrier to its widespread adoption – both in terms of practical implementation by businesses and customer acceptance.
Unlike recycling, which is familiar and mainstream, circular economy practices often remain ambiguous, with negative perceptions around quality and safety. Businesses and customers alike may view circular practices as inconvenient or risky, especially when they require behaviour change. Until circularity is better understood as economically viable and compatible with high-quality products and services – through education, training and industry standards – many companies will hesitate.
At Resource Futures, we offer tailored training to help businesses bring out about this shift internally, as well as support developing and communicating new products and services.
The investment gap
While some businesses recognise the urgency of reducing carbon emissions and transitioning to circular models, the upfront costs associated with infrastructure, staffing, and product development can be a significant barrier. Compounding this challenge is a lack of accessible finance for both innovative circular start-ups and existing businesses looking to change how they operate.
In today’s economic climate, investors often shy away from unfamiliar business models or products that appear unconventional or slower to scale. Public funding, while available, often requires match funding – excluding businesses that lack that initial capital – or involves meeting other requirements that are a stretch for SMEs.
However, funding alone is not a silver bullet. Our experience working with businesses looking to adopt circular practices highlights the need for tailored support, including market research, circular opportunity assessments and business model development.
We hope to see further policy support after England and Scotland publish their new circular economy strategies, perhaps tipping financial and fiscal incentives more in favour of circular business. Large businesses could also do more to embed circular economy standards within procurement policies, stimulating demand for circular products and services.
At Resource Futures, we support businesses in accessing funding – whether through help with applications, crafting strong business cases, or navigating the funding landscape.
Fragmented support landscape
Where support is available, it can be difficult for businesses to navigate. Our research for Zero Waste Scotland revealed that the support ecosystem is often fragmented and inconsistent. There is also a notable lack of dedicated support for circular businesses, particularly outside of Scotland and London, where programmes are typically framed around the broader net zero transition rather than circularity specifically.
Despite this, there are strong examples of effective support. Zero Waste Scotland’s Circular Economy Business Support programme – delivered with partial support from Resource Futures – has helped more than 200 businesses embed circular practices. Our work with West Yorkshire Combined Authority, through the Resource Efficient Business Fund, has also enabled many businesses to adopt circular approaches. In both instances, businesses were able to benefit from specific circular economy expertise that is often missing from incubators, chambers of commerce and enterprise agencies.
Role of networking and peer support
Peer-to-peer learning and collaboration are vital for circular start-ups, SMEs and even larger businesses trialling new models. Networking enables businesses to share challenges, co-develop solutions and uncover partnership opportunities – while respecting the need for confidentiality on certain commercial aspects.
Initiatives and organisations such as Circular Glasgow, Circular Edinburgh and ReLondon are fostering inclusive spaces where businesses, researchers, and policymakers can collaborate safely and productively. At Resource Futures, our business support services play a key role in this ecosystem by helping businesses identify and connect with potential partners and suppliers through targeted market research and facilitated introductions.
Moving forwards
Adopting circular economy practices isn’t always straightforward and many companies are still struggling to find the right support. At Resource Futures, we understand the challenges circular businesses face and can provide support that’s practical and relevant.
Our team helps businesses build strong, sustainable models by offering tailored market insights and training, guidance on business development, and support to access funding. We help companies to clearly communicate their circular value to customers in a way that aligns with their sustainability goals.
If you’re curious about how we can help your business take the next step, get in touch with one of our circular economy experts.
