The Circular Shift to a Sustainable Economy

A circular economy turns waste into opportunity, building a sustainable future through innovation, conscious choices, and women’s leadership.

When purchasing a decorative object, article of clothing, or beauty product, how often do you consider the origin of its composite materials and where they will end up? This question has become increasingly urgent as climate challenges such as air pollution, water contamination, and soil degradation put immense pressure on global ecosystems. Long-standing linear economic models, which extract, use, and discard resources, have pushed planetary boundaries beyond sustainable limits. The consequences are clear: escalating heatwaves, severe water scarcity, and prolonged droughts threaten ecosystems and human livelihoods.

As the European Union generates more than 2.2 billion tonnes of waste annually, immediate action is crucial. Circular economic models present a viable solution – they can mitigate environmental harm and allow us to establish more sustainable relationships with our planet’s resources. As the Ellen MacArthur Foundation explains, circularity involves two key material flows: biological nutrients that safely return to the environment and technical resources continuously cycled within the economy. [AT1] This system seeks to redefine economic growth by minimising waste and pollution, keeping materials in use for as long as possible, and regenerating natural ecosystems.

The Mediterranean region faces sustainability challenges that make adopting circular economy principles particularly urgent, but the transition is far from straightforward. According to the Union for the Mediterranean Secretariat, moving toward a green circular economy in the region is “a complex process requiring the concerted efforts of all stakeholders,” which includes the public and private sectors, academia, and civil society.

From developing public infrastructure to implementing bottom-up initiatives encouraging more environmentally friendly interactions across various sectors, green entrepreneurship is gaining momentum. Although the path is challenging, with many sustainable business pioneers, particularly women, encountering significant barriers and systemic biases, the work is beginning to pay off with important milestones offering hope for the future.

The challenge of market entry

Securing financial support remains one of the most significant obstacles. Traditional investors prioritise short-term gains while circular economy ventures require patience and a long-term perspective. Many entrepreneurs rely on grants or personal savings, resources often insufficient to scale their businesses effectively. Initiatives like The Switchers Community seek to bridge this gap by connecting entrepreneurs with impact investors and financial institutions recognising the value of sustainable business models.

Led by MEDWAVES, this project highlights green entrepreneurs in the Mediterranean by telling their stories, increasing visibility and equipping them with the necessary tools to access financing. The Switchers Community provides capacity-building, facilitates investor matchmaking, and supports market access by linking entrepreneurs with retailers and increasing demand for green products and services. Despite significant milestones, Switchers around the Mediterranean still face challenges complicating the landscape.

Remember the question at the beginning of this article? A critical factor in achieving the shift toward sustainability is ensuring consumers become more conscious of their daily purchasing decisions. While the demand for sustainable products is growing, it remains far from mainstream. Many consumers prioritise affordability over sustainability, making it difficult for green businesses to compete with well-established, non-sustainable alternatives. Entrepreneurs must invest heavily in educational campaigns to shift consumer perceptions and emphasise the long-term benefits of sustainable products.

Marta Plana, industrial designer and founder of Punto Ciego – a company established in 2023 manufacturing notebooks in a small, semi-industrial workshop – said in a Switchers interview   that working with sustainable materials often comes at a higher cost. She emphasised the importance of telling compelling stories to educate customers about the value of these materials, fostering a deeper connection with them. According to Plana, building a community of like-minded collaborators and consumers is crucial for overcoming challenges and ensuring the sustainability of her production model.

However, the Mediterranean region presents unique challenges with stark differences between countries. Some nations, such as Lebanon, are dogged by armed conflict, placing additional pressure on green entrepreneurs and consumers. Paul Samaha, a Switcher and founder of Lebanese startup OyaWay – producing clay pots (oyas) designed for burial underground next to plants to provide efficient irrigation – said in another Switchers interview: “It was hard to keep going when everything around us was in pain and destruction. It often felt futile – and at times insensitive – to carry on ‘business as usual’ while people were losing their lives and livelihoods.”

Thus, beyond environmental benefits, promoting a circular economy can also contribute to social justice. According to the European Parliament, the circular economy could create 700,000 jobs by 2030 and unlock €1 trillion in investments by 2050.

The circular economy could create 700,000 jobs by 2030 and unlock €1 trillion in investments by 2050.

European Parliament

The Role of Women in Green Entrepreneurship

While green entrepreneurs face considerable challenges, women in the sector encounter systemic inequalities across the Mediterranean. In the agri-food industry, for instance, women often struggle to access training and tools that remain male-dominated. According to the UN Food and Agriculture Organisation report, The Status of Women in Agrifood Systems, “if not combined with efforts to ensure equity and social inclusion, the green transition of Mediterranean food systems bears the risk of exacerbating existing gender gaps, thus creating further marginalisation and inequality.”

Women-owned businesses are typically smaller and less profitable, growing slower than male-owned enterprises. According to the World Bank Group report, “Female Entrepreneurs: How and Why Are They Different?” , they also have higher closure rates and use less external financing. These disparities are largely influenced by the industries in which women operate – typically service, retail, and hospitality – which are often overcrowded and have lower profit margins. This sectoral sorting is shaped by restrictive social norms, limited access to capital, and differences in risk tolerance, all contributing to the economic underperformance of female-led businesses.

The World Bank Group report explains that aside from financial metrics, success for many women entrepreneurs extends beyond revenue and profit growth. Women often value control over their destinies, meaningful client relationships, and achieving a better work-life balance. Entrepreneurship can also be a pathway for empowerment, offering women increased status in their households, markets, and communities. Thus, evaluating female entrepreneurship solely through economic outcomes overlooks the broader impact it has on women’s lives and societies.

The Switchers community has identified some women leading the most transformative green initiatives in the Mediterranean. CompoRoll, a start-up founded by Ghalia Dhamak in Tunisia, offers a sustainable and cost-effective solution by transforming organic waste into compost. And it is revolutionising waste management in the Middle East and North Africa region.

“Sometimes I feel challenges are scaling up more than the business; in my opinion, the biggest one is a social barrier ,” Ghalia said in an online Switchers interview.  Despite these challenges, the Switchers initiative explains that CompoRoll has unlocked notable achievements. By 2024, the company reclaimed more than 500 tonnes of organic waste, prevented the emission of over 40 metric tonnes of carbon dioxide, and enhanced soil quality across more than 30 hectares. Additionally, the growing adoption of CompoRoll’s composters – surpassing 600 domestic units and two industrial installations – highlights the impact of its initiatives and advocacy efforts.

“Sometimes I feel challenges are scaling up more than the business; in my opinion, the biggest one is a social barrier.”

Ghalia Damak, founder of startup CompoRoll

Similarly, Up-Fuse, a sustainable fashion brand in Egypt, has navigated financial and logistical hurdles while pioneering eco-friendly products. “Before joining Up-Fuse, I struggled to make ends meet and provide for my children,” Aisha, a single mother from Sudan said in a Switchers interview. “But here, I’ve learned new skills, found a sense of community, and most importantly, I can finally support my family.”

This reflects the broader impact of social enterprises in driving the transition to a circular economy. As highlighted by the Green Economy Coalition, social enterprises are key players in delivering social and environmental benefits on a global scale. The RREUSE network highlights social enterprises playing a key role in job creation, with approximately 70 jobs generated per 1000 tonnes of materials collected for reuse, often employing a high percentage (45–80%) of individuals from disadvantaged backgrounds. By creating employment opportunities for low-skilled workers and those at risk of social exclusion, enterprises like Up-Fuse promote sustainability and foster inclusivity and economic empowerment.

Our turn for help

Despite considerable challenges, green entrepreneurs forge ahead, driven by resilience, innovation, and commitment to sustainability. Initiatives such as the Switchers Community are crucial in addressing financial, regulatory, and social barriers, ensuring that these pioneers have the support they need. Women are proving to be key players in this transformation, breaking down barriers and redefining leadership in the sustainability sector.

So, if the next time we buy something we ask ourselves where it came from, who made it, or where it will go once discarded, we are making the necessary shift for the planet and accelerating the transition to a circular economy for the benefit of future generations.