Circular business models for social enterprises and recycling centers in northern Finland

Abstract

The aim of the thesis was to explore the applicability of circular business models (CBMs) for social enterprises and recycling centers in Northern Finland, specifically in the regions of Lapland, North Ostrobothnia, and Kainuu. Commissioned by the THREADs project under the Interreg Northern Periphery and Arctic Programme, the work was closely tied to efforts in promoting textile circularity and enhancing social inclusion. The thesis employed a constructive research approach with an abductive methodology, integrating theoretical insights with practical solutions. Data collection involved semi-structured interviews with Nordic experts and a stakeholder development workshop using the Six Thinking Hats method. A conventional content analysis was applied to analyze the qualitative data. The research investigated CBMs currently implemented in the region and evaluated the benefits and limitations of CBMs for social enterprises and recycling centers. Findings revealed that resale is the most established model, while repair services are projected to grow due to their alignment with inclusive employment goals and changing consumer behavior. However, adoption of CBMs is hindered by factors such as consumer stigma, low awareness, high operational costs, insufficient marketing, lack of funding/tax incentives, and rural infrastructure limitations. The thesis concluded that circular business models such as remake/repurpose, rental, repair, and re-use—implemented through initiatives like repair cafés, textile upcycling with prints, community dye baths, and targeted rental services—demonstrate strong potential for further development. Key success factors include legislative support, improved infrastructure, creative marketing, consumer engagement, and enhanced collaboration across textile value chain. The study emphasizes the vital role of social enterprises and recycling centers in fostering sustainable textile practices and proposes practical strategies for scaling CBMs within the local context.