Perspectives on Energy, Environmental and Economic benefits from collaborative interactions of Circular Start-Ups and large companies. A case study in the textile district of Prato

This study investigates the transition to the circular economy (CE) model and its increasing application in industrial companies. The research context is the textile district of Prato, Tuscany region, that relies on a long historical tradition of CE application. Some industrial companies have been contacted, and their Administrators and CEOs have been interviewed, focusing on their understanding of the role of circular start-ups (CSUs) in the collaboration and relationships with large companies. The results show that this collaboration started for commercial purposes, since the companies interviewed in this study are producers of recycled yarns used by their customers, including CSUs, for the manufacturing of their garments. Over time, the collaboration further advanced, adding new types of interactions, characterized by environmentally and socially positive outcomes. This study shows that the collaboration between the small CSU Rifò and two of the largest companies of the Prato district as well as the outcomes in terms of environmental, energy and social benefits well extend over the micro, meso and macro levels of the CE model and reveal that the circular and sustainability performances of the selected CSU and its large partners are aligned with the goals of the district and the city of Prato towards consolidating themselves as a reference center of a CE and a circular city, respectively. This is an important result compared to the previous literature that encourages further future research to provide more generalizable results. Further, the case study of the Rifò regenerative circular business model shows the current “limits” of recycling and the need to thoroughly consider the CE model by implementing all CE principles and promoting a timeless and responsible fashion, conveying the emotional, environmental and social values behind garments.