CIRCULAR BUSINESS MODELS FOR SUSTAINABLE DEVELOPMENT OF UKRAINIAN ENTERPRISES

Abstract

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.