The working future: An analysis of skills needed by circular startups

Aside from potential environmental benefits, the implementation of circular economy principles in businesses can have merits for the labour market. The current unemployment in several regions of Europe and the qualitative mismatch between supply and demand could be countered by reskilling the labour force to adjust supply and demand to one another for increased reuse, repair, or recycling, among others. This study uses interviews to increase the focus of the research question and uses survey data to perform an ordered probit regression analysis to sketch the current and future landscape of startups' skills in Flanders (Belgium), and to analyse the relationship between circular strategies and different types of skills. The results show that design to lower material use increases the need for transport and logistics skills, digitalisation increases the need for R&D and IT skills, and the recuperation of waste requires technical knowledge. Furthermore, gender, age, and experience of the entrepreneur influence the needed skills. The paper probed for policy recommendations for the uptake of circular strategies and recommendations for future research. The most asked policy measures by the respondents are innovation and collaboration support (subsidies), fiscal measures that support circular goods and services, and public procurement for circular goods and services. This research is of relevance for several stakeholders, such as startup ecosystems, sector organisations, policy makers in innovation policy and labour market policy, and educational institutions.

Automated summary

In addition to environmental benefits, implementing circular economy principles in businesses can have advantages for the labour market. Reskilling the workforce to align supply and demand for increased reuse, repair, or recycling can address unemployment and qualitative mismatch. This study analyzes startups' skills in Flanders and their relationship with circular strategies. The results show that different types of skills are needed for design, digitalization, and waste recovery, influenced by gender, age, and experience of the entrepreneur. Policy recommendations include innovation support, fiscal measures, and public procurement. This research is relevant for startup ecosystems, policy makers, and educational institutions.