Abstract
Strong ecological values define the desire of individuals to exploit business opportunities in the circular economy. However, strong ecological values are unlikely to contribute to strong individual motivation when individuals sense that it is not feasible to exploit such opportunities. This chapter develops this argument conceptually using expectancy theory. Expectancy theory suggests that individuals derive their motivation from strong perceptions of both desirability and feasibility. Understanding an entrepreneur's motivation to participate in the circular economy is important for attempts at entrepreneurial development in this alternative economy. Policies as well as education and training programs must consider instilling the required ecological values in citizens as well as giving attention to technological, market, cultural, and regulatory constraints that render CE opportunities infeasible.
TopBackground
We have little understanding about how desires and abilities interact to form the entrepreneur’s motivation to participate in the CE. Thus far, motivation has been considered broadly in terms of sustainable entrepreneurship; and it is yet to be considered for specific CE opportunities (Bohnsack, & DiVito, 2018; Parrish, 2010; Schaltegger, & Wagner, 2011). However, CE entrepreneurship is a subset of sustainable entrepreneurship. Notably, it also shares characteristics of eco-preneurship and environmental entrepreneurship, which are all forms of sustainable entrepreneurship.
One has to bear in mind that entrepreneurs who exploit CE opportunities require specific knowledge because CE is an approach that focuses on increasing resource efficiency and resource productivity (D’Amato et al, 2017). This implies specific abilities amongst entrepreneurs or amongst the professionals employed by entrepreneurs. Yet research on entrepreneurial motivation in the sustainable economy has tended to focus on the desires or values of individuals (e.g. Kirkwood & Walton, 2010; York, O'Neil & Sarasvathy, 2016).
This research suggests that sustainable entrepreneurs share the economic desires of conventional entrepreneurs; but they have additional desires to preserve the environment: desires attributed to ecological values. Because meeting these desires serve the interests of people beyond the entrepreneur’s immediate social circle, ecological values also have a strong altruistic content (Fauchart & Gruber, 2011). Often times sustainable entrepreneurs’ ecological values serve as a stronger driver of their motivation than economic values; at other times, there can be a balanced blend of ecological and economic values; and yet other times a stronger economic than ecological values (York et al, 2016).
Key Terms in this Chapter
Economic Value: Value accorded to financial outcomes.
Perceived Feasibility: Similar to expectancy, this is the belief that one possesses the necessary skills and abilities required to be successful in a particular situation.
Perceived Desirability: The belief that the rewards associated with certain outcomes are personally attractive.
Ecological Value: Value accorded to preservation of our ecosystem.
Entrepreneurial Self-Efficacy: An individual's belief in his/her capability to perform tasks and roles aimed at entrepreneurial outcomes.
Value: Similar to valence, this is used to reflect what is important to an individual.
Ecosystem: The relationship between all living organisms, including humans, and their habitat (the environment). Thus, the ecosystem includes the environment, plants and animals (including humans).
Expectancy: The belief that if one works hard, one will be able to meet their performance targets. It is akin to self-efficacy.
Motivation: While some define motivation in terms of its content such as needs or desires, this Chapter takes a process perspective and defines it as the process that initiates, guides, and maintains goal-oriented behaviours.
Entrepreneurial Motivation: The drive of an entrepreneur that enables him/her to persist with the discovery, evaluation and exploitation of a future situation, which he/she perceives as desirable and feasible.