Enhancement of the market attractiveness and success of startups on the circular economy and sustainability principles

Abstract

Purpose. The purpose of this study is to develop the methodology and the framework for assessing the level of environmental friendliness of startups in the agricultural sector and their compliance with the circular economy and sustainable development principles using T. L. Saaty’s analytic hierarchy process (AHP) to enhance their market attractiveness and success. Methodology / approach. The author’s methodology was created based on the AHP approach which is a comprehensive decision-making framework used to divide complex problems into a clear hierarchical structure. This approach enables the evaluation and comparison of multiple criteria facilitating informed decision-making. Calculations have been made in the RStudio. Results. The authors’ methodology and the framework for assessing the startups’ environmental friendliness and compliance with the circular economy and sustainability principles were created. The unique program was developed and executed in the RStudio using R programming language. The created methodology is based on the hierarchical criteria system consisting of three main criteria – “Compliance with the EU environmental standards and sustainability principles promotion”, “Compliance of the startups’ business model to the circular economy and sustainability principles”, and “Resource usage rationality” with the corresponding sub-criteria. It was determined that the first criterion has the highest impact on the startup eco-friendliness with a weight of 49.2 %, the second one has a weight of 28.7 %, and the third one – 22.1 %. The system of requirements for the AHP experts was also developed. Originality / scientific novelty. It was substantiated that the application of the original authors’ methodology and program enhance the startups’ market attractiveness and success by strengthening their brand image. The proposed solution facilitates the implementation of the circular economy and sustainability principles for innovative businesses, leading to improvements in environmental protection and waste management. Practical value / implications. The methodology has been tested on the example of the authors’ bioenergy startup for producing eco-friendly biofuels using agricultural and food industry wastes and minimising the usage of toxic substances. Based on the experts’ opinion and using the authors’ unique program it was calculated that the startup complies with the circular economy and sustainability principles and has an eco-friendly brand image with a 78.6 % probability.