Exploring circular economy engagement amongst Scottish businesses
Our research has shown that Scottish businesses have a growing awareness of the Circular Economy, but many don’t know where to start.
As a part of our work to rewire the economy, it is essential to understand Scottish businesses’ awareness, needs and barriers around the circular economy. The overarching objective of this research was to understand businesses’ relationship with the circular economy. This meant exploring what they understand it to mean, how it relates to their business, their existing and future plans around circularity, and what support they need to adopt circular economy practices (CEPs) and circular business models (CBMs).
An insight into businesses’ understanding of circularity
The research found 77% of businesses favour circular economy practices but nearly half don’t understand the term.
Over three-quarters of Scottish businesses are in support of increasing sustainable practices in order to drive operational improvements, but may lack breadth of understanding, confidence, and guidance needed to embed circular changes.
Commercial drivers proved a strong motivator – with the desire to reduce costs and increase profits rating most highly. Businesses reported feeling confused however, and unsure where to begin, and having limited awareness of how circularity could deliver tangible benefits.
The research overall highlighs a need for clearer guidance, accessible support and practical tools for businesses. That’s where the Business Information Hub steps in.
Key research findings include:
- 65% of businesses had heard of the circular economy, but only 44% felt they understood it well.
- 75% felt knowledgeable about circular practices when given practical examples, highlighting confusion around terminology.
- Recycling (95%) and waste reduction (83%) are the most widely adopted actions, while fewer have redesigned products (52%) or implemented resource recovery (45%).
- Less than half (46%) plan to adopt additional circular practices in the next three years.
- Cost savings are the strongest motivator, rated highest among all drivers.
- Lack of funding is the most significant barrier, cited by two‑thirds of businesses.
- Only half of businesses have accessed any support, with smaller firms the least likely to do so.
- Zero Waste Scotland is the most used support provider among those who sought help.
- Circular supply‑chain or customer partnerships remain uncommon, despite strong perceived benefits.
- Businesses fall into four readiness groups: CE‑literate, CE‑curious, CE‑hesitant, and CE‑uninformed.