Circular business models: challenges and opportunities

Abstract

The linear economy based on depletable resources, with a negative impact on the environment, can no longer be accepted. Awareness of thisissue has led to changes in the international policy that entrepreneurs and consumers must comply with. As the European Union has set itself the goal of moving to a fully circular economy over the next three decades, entrepreneurs in the EU and in associated countries have to find ways toadopt circular business models. In this study we aimed to describe the challenges that arise in the process of transition to the circular economy and to present the opportunities of this transition. The mechanisms and tools to support circular business were analyzed on the basis of data from the Republic of Moldova in order to encourage local entrepreneurs to conduct circular business. The research was based on the analysis of policy papers, scientific articles, studies and reports prepared by international organizations specializing in the circular economy. As a result of the research, we have shown that through the joint effort of society and the authorities, mechanisms can be created to support the circular business that will drive the transition to a circular economy. This study was developed within the State Program 20.80009.0807.22 Development of the mechanism of formation of the circular economy in the Republic of Moldova.