Background: In recent decades, human activities have pushed the planet beyond several ecological thresholds, threatening Earth's environmental stability. The planetary boundaries framework highlights how key Earth systems - such as climate regulation and biogeochemical flows - are under increasing pressure, with recent findings showing that six out of nine boundaries have already been crossed. Among the major contributors to this disruption is waste generation, driven by the dominant 'take-make-waste' linear economic model. This unsustainable approach has led to environmental degradation, resource depletion, and health risks - particularly in emerging economies. These countries, while experiencing rapid economic growth and holding vast natural resources and biodiversity, face significant challenges from rising waste volumes. In this context, transitioning to circular economy offers a strategic path to reconcile development with environmental sustainability.

Research problem and purpose: Existing literature focuses on circular economy development in developed economies, often overlooking the distinctive factors influencing circular transformation in emerging economies. This thesis aims to address this gap by exploring the research question: “How do drivers and barriers influence the development of circular business models in companies operating in emerging economies?” The study investigates the case of Company Alfa to identify how internal motivations, external limitations, and local contexts shape the evolution of circular practices.

Method: A qualitative case study approach was used to examine Company Alfa, employing semi-structured interviews with company representatives alongside secondary data extracted from the company’s publications. The analysis followed a thematic approach, combining inductive and deductive coding processes to ensure flexibility and suitability in identifying, analyzing, and reporting patterns and themes within the data.

Conclusion: The study finds that circular business models in emerging economies can develop progressively, driven more by internal values, innovation, and long-term thinking than by formal policy frameworks. In the case of Company Alfa, early environmental awareness, strong sustainability values, and stakeholder engagement were important drivers, while limited infrastructure and regulatory ambiguity served as key barriers. The research highlights the importance of context-specific strategies and the role of internal stakeholders – especially shareholders - in advancing circular economy in regions with institutional and structural limitations.