The Circular Economy Guide for Entrepreneurs: How the Circular Economy Will Revolutionize Your Business

Linear model – the standard economic model

The standard economic model is based on continuous extraction of resources, production, and consumption, which leads to massive waste and loss of resource value. This approach not only deepens the planetary crisis but also affects the conditions for doing business by increasing operational risks, causing problems with resource availability, raising prices, and complicating human resource issues—especially evident in the context of global migrations and conflicts.

Resource waste is not the result of wrong decisions or business mistakes but is linked to an inefficient economic system that requires fundamental change. Transforming the current model into a circular economy (CE) can bring many benefits to companies. Primarily, it allows diversification of resource access, increases resilience to socio-economic shocks, opens new markets, and helps meet growing requirements for sustainable business practices.

Circular economy model

The circular economy model is economically sensible—we use the value already present in the economy, reducing the need to extract new resources, increasing resource utility per unit, and minimizing waste generation.

For businesses, it’s an opportunity to increase production efficiency, generate new revenue streams (e.g., from selling refurbished products), reduce operating costs, and improve their image with customers. Additionally, acting in line with CE principles helps companies become independent of shrinking resource supplies, including critical raw materials, and adapt to increasingly stringent regulations.

What benefits does a company gain by implementing the circular economy model?

• Increased production efficiency through more effective use of resources.

• New revenue streams, e.g., through sales of refurbished products.

• Reduced operational costs.

• Better perception of the company and its products by customers.

• Independence from limited or scarce resource supplies, including critical materials.

• Early adaptation to ever-increasing regulatory requirements, reducing additional costs (e.g., fines).

  
  

It is important to remember that transforming business operations in the spirit of CE is not an end in itself but a tool for achieving long-term profit that accounts not only for financial results but also environmental and social costs. These costs are already impacting the economic condition of companies and their significance will only grow.

Achieving the mentioned benefits of implementing the circular economy model is not automatic. It requires going beyond standard economic relationships, taking on new roles and responsibilities, and entering a new level of economic cooperation. To fully realize the potential of CE, new business relationships and cooperation at all levels of the economy are essential.

Only together can we build a circular world characterized by more efficient resource use, sustainable development, resilience, and prosperity for all.

Collaboration for the Transition to a Circular Economy: A Guide for Entrepreneurs

Project co-financed by the European Regional Development Fund under the European Funds for Eastern Poland (FEPW) 2021–2027 program.

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Report authors: Hubert Bukowski, Zofia Koch, Marianna Rytlewska, Agnieszka Sznyk

Executor: Institute of Innovation and Responsible Development INNOWO

Substantive cooperation with PARP: Izabela Banaś, Maja Wasilewska, Agnieszka Katowicz