Success factors for scaling urban circular businesses in the food sector

Abstract

This article investigates success factors for niche circular food businesses to scale up. We first translate Circular Economy thinking to a food systems context by creating a comprehensive overview of circular food activities and measurements. Using Toronto, Canada as a case study, we analyze eleven niche circular food solutions to find success and barrier factors to scale up. Data was collected via questionnaires and interviews, resulting in five categories of factors that either help or hinder circular food business growth. A statistical correlation analysis is performed. The most successful businesses were those that operated in more than one stage of the food chain, had at least 2–3 years to stabilize their performance, and had financial investors. We explore that circular businesses strongly prioritize social and environmental goals and the impact of this when seeking (or avoiding) grants and other traditional business supports. Government and industry partners have a larger role to play in supporting circular businesses but must expand definitions of growth beyond economic metrics to effectively support the transition to a circular food system.