Journal of Geography and Regional Development

Exploring the Impact of Circular Economy on Boosting the Economic Viability of Marginal Areas of Tabriz considering the Mediating Role of Social Entrepreneurship

Document Type : case study

Authors

Reza Norouzi Ajirloo 1
Moslem Soleymanpor 1
Seyed Mohammad Reza Movahed 2

1 Assistant Professor, Department of Business Management, Payame Noor University, Tehran, Iran

2 PhD Candidate, Department of Business Management, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

https://doi.org/10.22067/jgrd.2023.84462.1331
Abstract
Livability may include various factors depending on the dominant local socio-economic and cultural conditions. Since currently, livability is considered a prerequisite for a healthy life as well as economic and social survival, it would be so significant to improve the quality of life. Here, circular economy has been offered as an appropriate way to tackle lack of resources and a driver to have a sustainable economic system. The descriptive-survey study explored the impact of circular economy (recycling, production, and reuse) on economic viability through assessing the role of social entrepreneurship. The statistical population consisted of 80 managers and experts as supporting active social businesses in Tabriz. They were selected using random and snowball sampling methods. Moreover, standared and researcher-made questionnaires were applied for collecting the data. Hypothesis testing was done through SMART-PLS, using t-test and path coefficients (B). The results showed that there is a positive significant relationship between circular economy components (reuse, production, and recycling) and economic viability (employment and income, household expenses, and values of land and housing) at a significance level of 0.001. Moreover, the stody confirmed the positive impact of mediating variable “social entrepreneurship” on “economic viability” (B=0.681). So, it becomes clearly necessary to mitigate the use of natural resources through reusing and recycling products to achieve economic viability, considering the role of social entrepreneurs, positive social and environmental effects, and developing business models.
 
 

Keywords

Economic Viability
Circular Economy
Social Entrepreneurship
Subjects
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