The research presented in this paper explored multiple objectives. First, what are the requirements for establishing a new composting business that embraces the principles of circular economy? Second, how can employment opportunities for at-risk youths from the most impoverished neighborhood in Guatemala City be created, while adhering to the tenets of social sustainability, of which human rights is the corner stone? Third, what were the requirements involved in making compost in the challenging climatic conditions of Guatemala City? And finally, from an educational perspective, how can this be taught to university students incorporating community service learning in its pedagogy, coupled with the model of action research? What are the obstacles to overcome when initiating a startup business, balancing what appeared to be a mix of complex economic, environmental, and social elements? These three elements are the recognized pillars of sustainability, and as such, there existed a great opportunity to meld the principles of circular economy, community service learning, and action research within the context of putting theories into practice. This applied research attempted to explore how effectively this could be accomplished in Guatemala while overcoming complex cultural, environmental, and economic barriers.