Circular Models of Business Development Management: Problems and Prospects in Ukraine

Abstract

The purpose of the article is to study circular models of business development management, in particular, problems and prospects in Ukraine. Based on a research of scientific papers of domestic and foreign scholars, the essence of the circular economy and business model was defined. The article analyzes the basic principles of the closed-circle economy of 3R (reduction, reuse, processing) and the principles of its functioning, presents the detailed analysis of 5 basic circular business models (goods as a service; circular supply chain; the processing of resources; prolongation of the life cycle (LC) of goods; design without waste) and provides a graphic interaction of them. In addition, the main aspects of their functioning are substantiated, which include three levels: level of doing business and costs, market value, and ecosystem level. Examples of enterprises operating on the EU territory and effectively implementing the presented business models in their activity thus proving the effectiveness and practicality of their implementation by domestic enterprises are given. Also, the main problems and risks during the implementation of circular management models such as ecological, social, and economic are determined. In order to neutralize and minimize the impact of identified problems and risks on the activities of economic entities, measures are proposed to ensure a smooth transition of domestic enterprises from a linear to a circular economy. It is found that due to the introduction of business models in the stages of production, companies manage to save a significant part of resources, increase their income and even create additional jobs. It should be noted that the article presents a small part of examples on the realization and use of business models of a closed cycle; therefore the prospects for further research can be outlined in the direction of studying other examples of their application and developing effective measures to simulate the transition to a circular economy at the State level.

Keywords

• circular economy
• business model
• principles
• waste