CIRCULAR ECONOMY – THE BASIS OF SUSTAINABLE ENTERPRISE DEVELOPMENT

2022;
: 9-24
1
Lviv Polytechnic National University
2
Lviv Polytechnic National University

Purpose. Today, global issues such as population growth, depletion of natural resources, deforestation, greenhouse gas emissions, and climate change show that existing methods of managing the economy are no longer effective and harm the environment. The solution to this problem is the transition to balanced sustainable development, in particular through the circular economy model, which is attracting more and more attention from scientists and practitioners. Thus, the purpose of the study is to develop proposals for enterprises as to adaptation of circular principles for sustainable development, in particular through adapting of EU countries’ experience.

Design/methodology/approach. Design of the study includes: clarification of the "circular economy" concept, its significance for enterprises in the context of sustainable development; analysis of implementation of circular principles by the EU countries, in particular in terms of the Covid-19 pandemic; providing recommendations to enterprises on the implementation of zero-waste technologies; formation of SWOT-analysis of the implementation of circular principles by Ukrainian enterprises; development of proposals to enterprises for adapting circular business models. The following research methods are used: analysis, synthesis, generalization, analogy, comparison, systematization, graphical methods of data display.

Findings. The countries of the European Union are global leaders in adapting the circular model, as they are not only intensively developing the legal framework for the transition to it, but also successfully applying its principles in practice. The given examples of the most successful EU companies can motivate the rest of the world, including Ukraine, on the way to circularity. Such results are quite obvious, because the EU countries have clear strategic priorities in this area, and accordingly, today the circular economy in the EU creates added value, jobs, investment inflows.

Thus, the authors clarified the essence and principles of the "circular economy" and its importance in the context of sustainable development, analyzed the implementation of circular principles and business models by EU countries, provided recommendations to enterprises on the implementation of waste-free (low-waste) technologies, performed a SWOT-analysis of the implementation of the principles of the circular economy by Ukrainian enterprises, as well as developed proposals for the development of circular business models.

Practical implications. The model of circular economy is useful for the environment, ecology, economic efficiency of companies and countries. Given the world experience, Ukrainian companies in the context of European integration and increasing uncertainty and complexity of the global environment must take into account and adopt the experience of EU companies in the field of circular economy, actively implement such principles and models for sustainable development. Adaptation of circular business models by enterprises is the basis for increasing the competitiveness and sustainable development not only of them, but also of industries, regions and countries as a whole. At the same time, both enterprises and the state in general need to focus their policies not on reducing costs, but on supporting strategic goals, in particular the goals of sustainable development.

Originality/value. The provided recommendations can be used by Ukrainian enterprises of various industries and sizes on the way to their sustainable development. It is worth noting that despite the described probable threats that may arise during the implementation of circular principles, Ukrainian enterprises and the country will receive a significant positive effect in the long run.

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