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Circular economy (CE) has emerged as a sustainable alternative to the current "take, make, waste" linear approach. Although prior studies have highlighted the salience of collaborative efforts between start‐ups and incumbents, little is known about the mechanisms behind collaboration in a CE context. This study enhances our understanding of the topic by drawing on six cases of circular start‐ups (CSUs) operating in the United Kingdom's business‐to‐business market and investigating the mechanisms by which start‐ups collaborate with incumbents. Using the Context, Intervention, Mechanism, Outcome framework, the paper's findings demonstrate that CE does not necessitate high‐risk and expensive changes and show that CSUs can collaborate with incumbents in low‐risk ways by outsourcing and developing service contracts. [ABSTRACT FROM AUTHOR]

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