Purpose. The purpose of the research is to analyze Ukraine and its enterprise’s methods of implementation of circular principles and business models to ensure their sustainable development.
Design/methodology/approach. The study examines the hypothesis of the global need and high efficiency of changing the economic model from linear to circular at different levels, including the adaptation of circular business models at Ukrainian enterprises. To assess the essence, advantages, practical approaches, and examples of transformation by enterprises of the circular principles and business models, general scientific theoretical methods of scientific research (formalization, analysis, and synthesis, systematization, and explanation) are used.
Findings. The hypothesis of the global need and high efficiency of changing the economic model from linear to circular at different levels, including the adaptation of circular business models at Ukrainian enterprises, is proven. The world experience and practice, first of all, European, are analyzed, and successful examples of their introduction by the leading enterprises are given. They confirmed that circular principles are helpful not only for ecology and the environment but also for enterprises and states’ economic efficiency.
Practical implications. The results of this research show that taking into account the world experience and provided recommendations, in particular on “green procurement”, it is expedient for domestic enterprises to implement promptly circular business models for sustainable development and international competitiveness boosting, and for the state – to develop a clear strategy for transition to a circular economic model. For its effective implementation, it is necessary to consider three aspects: economic, environmental, and social, as well as possible risks.
Originality/value. Considering current environmental and economic problems, the circular model was recognized as especially relevant for Ukraine today on its way to the E.U. This study highlights the essence, principles, prerequisites, and world experience of transition from a linear to a circular model of the economy and ways of sustainable development and competitiveness of domestic enterprises by adapting circular business models. The results are valuable for enterprises and countries in their transition to circularity, providing waste recovery and recycling, using renewable materials and reuse of products, prevention of pollution and depletion of resources, ensuring profitability and sustainable development.
1.Avraamidou S., Baratsas S. G., Tian Y., Pistikopoulos E. N. (2020). Circular Economy - A challenge and an opportunity for Process Systems Engineering. Computers & Chemical Engineering, 133, 106629.
2.Circular economy update. Overview of circular economy in Europe 2019. Final report. Ecopreneur.eu. Retrieved from: https://circulareconomy.europa.eu/platform/sites/default/files/ecopreneu....
3.Damen M.A. (2018). A Resources Passport for a Circular Economy: Master Thesis. Utrecht University. Retrieved from: http://dspace.library.uu.nl/handle/1874/257741.
4.EESC (2019). Towards a Sustainable Europe by 2030. Reflection Paper, European Economic and Social Committee, Brussels.
5.Ellen MacArthur Foundation. What isthe circular economy? Retrieved from: https://www.ellenmacarthurfoundation. org/circular-economy/what-is-the-circulareconomy.
6.EU Green Public Procurement (2008). Retrieved from: https://www.switchtogreen.eu/?p=1527.
7.European Commission (2015). Circular Economy Action Plan. For a cleaner and more competitive Europe. Retrieved from: https://ec.europa.eu/environment/circular-economy/pdf/new_circular_econo....
8.European Commission (2019). Employment and Social Developments in Europe: 2019 review highlights that tackling climate change can be a driver for growth and jobs, Brussels.
9.European Commission (2020). Europe 2020: A strategy for smart, sustainable and inclusive growth. Brussels: EC.
10. Horbal N.I., Adamiv M.Ye., Chumak A. S. (2020). Adaptation of circular economy principles to waste management in Ukraine. Visnyk Natsionalnoho universytetu "Lvivska politekhnika". Seriia "Problemy ekonomiky ta upravlinnia", T. 4, No. 1, рр. 159-166.
11. Geissdoerfer M. and Savaget P. and Bocken N. M. P. and Hultink E. J. (2017). The circular economy a new sustainability paradigm? Journal of cleaner production, 143, рр. 757-768.
12. Kalmykova Y., Sadagopan M., Rosado L. (2018). Circular economy - from review of theories and practices to development of implementation tools. Resources, Conservation and Recycling, 135, рр. 190-201.
13. Oghazi P., Mostaghel R. (2017). What are Circular Business Models (CBM). URL: https://innovationmanagement.se/2017/11/16/what-are-circular-business-mo....
14. Melnyk O., Horbal N., Zaliska L., Tiagnyriadko I. (2020). Circular economy model adoption for waste management in Ukraine: European experience / Strategies, models and technologies of economic systems management in the context of international economic integration: collective monograph. Riga, Latvia: Institute of Economics of the Latvian Academy of Sciences, 296 p.
15. Shahbazi K. (2020). 10 circular business model examples. Retrieved from: https://www.boardofinnovation. com/blog/circular-business-model-examples/.
16. Shpak N., Kuzmin O., Melnyk O., Ruda M., Sroka W. (2020). Implementation of a Circular Economy in Ukraine: The Context of European Integration. Resources, 9(8):96. https://doi.org/10.3390/resources9080096.
17. Sunniva A., Bucker Ch., Desguin S., Vaage N., and Saebi T. (2017). Taking Part in the Circular Economy: Four Ways to Designing Circular Business Models (January 30, 2017). Retrieved from: https://ssrn.com/abstract=2908107.
18. Teece D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43, рр. 172-194.
19. The circularity gap report 2021. Retrieved from: https://www.circularity-gap.world/2021.
20. Thornton A. (2019). These 11 companies are leading the way to a circular economy. WEF. Retrieved from: https://www.weforum.org/agenda/2019/02/companies-leading-way-to-circular....
21. Waste statistics 2018. Statistical Office of the European Communities / EUROSTAT: Regional statistics: Reference guide. Retrieved from: https://ec.europa.eu/eurostat/statistics-explained/index.php/Waste_stati....
22. Wirtz B.W., Pistoia A., Ullrich S., Göttel, V. (2016). Business Models: Origin, Development and Future Research. Long Range Planning, vol. 49, issue 1, рр. 36-54.
23. Vorfolomieiev M.O. (2020). Tsyrkuliarna ekonomika yak nevidiemnyi shliakh ukrainskoho maibutnoho v aspekti hlobalizatsii [Circular economy as an integral way of Ukraine's future in the aspect of globalization]. Efektyvna ekonomika, No. 5, рр. 1-7. (in Ukrainian).
24. Harmonizatsiia systemy zakupivel v Ukraini za standartamy YeS [Harmonization of the procurement system in Ukraine according to EU standards]. Retrieved from: https://infobox.prozorro.org/upload/files/main/662/227/yak-bratiuchast-u.... (in Ukrainian).
25. Zalunin M. M. (2019). Tsyrkuliarna ekonomika, yak peredumova zabezpechennia staloho rozvytku [Circular economy as a prerequisite for sustainable development]. Prychornomorski ekonomichni studii, 47 (1), рр. 196-201. (in Ukrainian).
26. Zvarych I. Ya. (2019). Implementatsiia planu dii YeS u sferi tsyrkuliarnoi ekonomiky [Implementation of the EU Action Plan in the field of circular economy]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu: Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo, 25 (1), рр. 93-98. (in Ukrainian).
27. Zvarych R., Zvarych I. (2019). Rozshyrena vidpovidalnist vyrobnyka v kontseptsii rozvytku tsyrkuliarnoi ekonomiky [Expanded producer responsibility in the concept of circular economy development]. Svit finansiv, No. 3, рр. 76-86. (in Ukrainian).
28. Zeleni publichni zakupivli: peredacha dosvidu zi Slovachchyny v Ukrainu [Green public procurement: transfer of experience from Slovakia to Ukraine]. (2018). Retrieved from: https://golocal-ukraine.com/ projects/zeleni-publichni-zakupivli-peredacha-dosvidu-zi-slovachchini-v-ukrayinu/. (in Ukrainian).
29. Kliuchovi fakty po YeZK vid Minekonomiky. KMU. [Key facts on EGC from the Ministry of Economy. CMU] (2021). Retrieved from: https://www.kmu.gov.ua/storage/app/sites/1/18%20-%20Department/18%20- %20PDF/01.2021%20PMnarada%203/minekonomiki.pdf. (in Ukrainian).
30. Malolitneva V. (2019). Vidpovidalne derzhavne spozhyvannia [Responsible government consumption]. Retrieved from: https://voxukraine.org/uk/vidpovidalne-derzhavne-spozhivannya-yak-tsirku.... (in Ukrainian).
31. Melnyk O. H., Zlotnik M. L. (2020). Analizuvannia stanu ta tendentsii rozvytku tsyrkuliarnoi ekonomiky u Lvivskii oblasti [Analysis of the state and trends of the circular economy in Lviv region]. BiznesInform, No. 2, рр. 125-133. (in Ukrainian).
32. Nechytailo D. (2020). Z chystoho arkusha: yak pratsiuie i chym vyhidna tsyrkuliarna ekonomika [From a blank slate: how it works and how profitable circular economy]. Ekonomichna pravda. Retrieved from: https://www.epravda.com.ua/columns/2020/09/2/664626/. (in Ukrainian).
33. Serhiienko L. V. (2017). Vprovadzhennia tsyrkuliarnoi ekonomiky v Ukraini: derzhavno-upravlinskyi aspect [Introduction of circular economy in Ukraine: public administration aspect]: dys... kand. nauk z derzh. upravl.: 25.00.02. Zhytomyr, 265 s. (in Ukrainian).
34. Stalyi rozvytok i dovkillia [Sustainable development and the environment]. UNDP Ukraina. URL: https://www.ua.undp.org/content/ukraine/uk/home/sustainable-development-.... (in Ukrainian).
35. Starchuk R. (2016). Zeleni zakupivli: realii ta praktyka YeS [Green procurement: realities and practices of the EU]. URL: https://edz.mcfr.ua/501488. (in Ukrainian).