The Role of Social Entrepreneurship in Building a Circular Economy Ecosystem in the Western Balkans

Abstract

The circular economy(CE) is a key player in transforming production systems and consumption habits in Western Balkans (WB) countries to tackle the challenges of climate change in a region that includes some of the most polluted capital cities in the world, such as Skopje and Pristina. The circular economy roadmap is one of the main priorities of the Green Transition in the region. Although circular economy practices in the WB countries are still in the early stages of development, there is potential for growth, primarily through the 5Rs (Reduce, Reuse, Repair, Refurbish, Recycle). The contributions of the circular economy and social entrepreneurship to achieving the Sustainable Development Goals (SDGs) are well recognised, as they provide solutions to social, environmental, and economic challenges. However, there is a need to pair these two concepts more effectively and integrate them. While the circular economy focuses on financial and environmental solutions, social entrepreneurship compensates by offering social solutions. Social enterprises create an inclusive approach to the circular economy. On the other hand, social enterprises that adopt the principles of the circular economy can reduce their operational costs, add value, and create further opportunities for jobs and training. Social enterprises also offer more inclusive business models that prioritise the needs of local communities. Additionally, the transition to a circular economy presents opportunities for social entrepreneurship and social enterprises, including upskilling and reskilling the workforce, developing collaborative business models that target consumers, fostering innovative partnerships, and promoting advocacy opportunities. In the context of WB countries, social entrepreneurship and the circular economy are often studied separately, although research interest in both fields is increasing. Social entrepreneurship has been a crucial driver of social and economic development in these countries. However, the circular economy ecosystem in the WB region remains fragmented. This paper aims to investigate how social entrepreneurship can contribute to building a circular economy ecosystem in the WB region. The approach of this study is qualitative, based on case study methodology, focusing on one particular WB country, Albania. Eight semi-structured interviews were conducted with various stakeholders, including government representatives, academics, NGOs, and social entrepreneurs, between October and November 2024. The study presents a conceptual framework for the circular economy ecosystem, integrating aspects of social entrepreneurship, including social orientation, market orientation, innovation, opportunity recognition, and community orientation. The main contribution of this study is in linking social entrepreneurship with the circular economy.

Received: 20 June 2025 / Accepted: 20 July 2025 / Published: 01 August 2025