Transitioning to a Circular Economy: Exploring the Roles of Green Financing, Sustainable Entrepreneurship, State Policy and Environmental Awareness

Abstract

Transitioning to the circular economy is one of the biggest changes toward sustainable practice. The four major enablers of circular economy adoption are green financing, sustainable entrepreneurship, environmental awareness, and government policy. Green financing channels resources into environmentally beneficial projects. Innovation and resource efficiency are promoted through green bonds and sustainability-linked loans. Sustainable entrepreneurship encourages innovative business models that follow the principles of circular economy. These include closed-loop systems and waste minimization. Environmental awareness forms consumer demand for green products while reinforcing sustainable dynamics in the marketplace. Government policies amplify the potential of financial and entrepreneurial efforts to be effective and efficient through regulatory frameworks, fiscal incentives, and public information campaigns. Indeed, a report based on surveys from 375 respondents in developing economies showed that strategic integration across technological, financial, and behavioral barriers is very much needed. The actionable recommendations suggest enhancing mechanisms of green financing, entrepreneurial innovation, and resource efficiency models. While the frameworks should be strengthened with incentive targeting. This is necessary on the part of governments, business entities, and financial institutions. Further research opportunities might be exploring the role technologies like blockchain or artificial intelligence take in optimizing transitions and looking into longitudinal analyses of circular economy adoptions across contexts.  

Keywords: Circular Economy, Green Financing, Sustainable Entrepreneurship, Environmental Awareness, Government Policy, Green Products