Marine plastic entrepreneurship; Exploring drivers, barriers and value creation in the blue economy

Abstract

Entrepreneurs working to tackle marine challenges are contributing to the Blue Economy by developing new technologies, services and products that can simultaneously stimulate economic growth and deliver environmental benefits. We study a subset of these blue entrepreneurs focused on marine plastic pollution mitigation, since little is known about the business models deployed and their associated drivers and barriers in this emerging industry. We utilize a multiple case study approach to analyze the business models of 96 startups working to manage marine plastic and identify four business model categories: 1) consumer targeted solutions, 2) government and business solutions, 3) companies focused on value chain development, and 4) startups that generate revenue to fund plastic waste recovery. These four BMs differ in how they create environmental benefits, as well as their economic value capture or revenue models. We then conducted 19 interviews with entrepreneurs (20% of the sample) and six experts to understand the conditions that support or hinder business model development. We find that entrepreneurial challenges and motivations associated with starting a new business are experienced by all companies, regardless of the business model chosen. Other relevant drivers include the availability of financing early on in business development, a supportive culture and positive and constructive market response. Challenges include competition from less sustainable businesses that may negatively influence the legitimacy of the industry, as well as slow government responses. Finally, we propose recommendations for policy makers to encourage blue entrepreneurship and for practitioners to prepare for identified barriers and predict avenues of support.