Sababu and Contextual Transition Capacity: Social Capital as a Missing Barrier in Circular Economy Transitions among SMEs in Freetown, Sierra Leone
DOI:
https://doi.org/10.54536/ajebi.v5i2.6838Keywords:
Circular Economy, Consumer Perception, Freetown, Global South, Relational Legitimacy, Sababu, SMEs, Social Capital, Transition CapacityAbstract
Small and medium enterprises (SMEs) are often seen as key players in promoting circular economy (CE) transitions, but most studies on CE barriers focus mainly on wealthy areas. This article develops a context-sensitive explanation of SME CE transition capacity in Freetown, Sierra Leone, combining desktop analysis with qualitative field materials from 20 marketplace actors (12 semi-structured interviews and two focus group discussions) and complementary online ethnographic observation of market discourse around CE by-products. Iterative thematic analysis generated three interlocking clusters of contextual transition capacity barriers: (1) Market competition and affordability: “CE products are for rich people”; (2) Consumer understanding of CE and by-products: cost, symbolism, and socio-cultural drivers; and (3) Sababu as a contextual barrier/enabler: social capital and market reciprocity. Sababu is theorised as contextual social capital, relational legitimacy embedded in identity, networks, and reputational pathways that structure consumer reciprocity and market access under conditions of high uncertainty and weak formal assurance mechanisms. SMEs that lacked sababu faced ongoing challenges with demand and being seen as legitimate, even if they had the right skills, investments, or unique products, while some SMEs with fewer traditional advantages were able to succeed through trust and support built on sababu. The article adds to the study of circular economy transitions by broadening the idea of “transition capacity” to include relational legitimacy as an informal support system that influences circular economy results in low-income, post-conflict urban areas, and it suggests ways for small and medium-sized enterprises (SMEs) to develop strategies and policies that create fair and inclusive circular markets.
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