Towards a Socially Inclusive Circular Economy: Evidence From Social Enterprises in Low‐ and Middle‐Income Countries

ABSTRACT Circular economy ( CE ) and social entrepreneurship (SE) are increasingly recognised as critical pathways for sustainable development, yet CE research often underplays social inclusion, particularly in low‐ and middle‐income countries (LMICs). This paper examines how organisations engaged in circular practices achieve social inclusion in practice. Drawing on a qualitative multiple case study of waste management organisations in Lagos (Nigeria) and Bogotá and Cali (Colombia), we analyse how empowerment is embedded within circular activities. Our findings show that organisations integrate agency‐building processes and opportunity structures into recycling, reducing and rethinking strategies, enabling marginalised actors to access services, gain recognition and participate in economic and civic life. We propose a socially inclusive circular economy (SICE) framework, which conceptualises social inclusion as an outcome of circular practices mediated by empowerment. The study contributes an empirically grounded understanding of how CE can support more inclusive and socially just sustainability transitions in LMIC contexts.