Circular economy and ecological economics as paradigms of modern entrepreneurship development

Abstract

The article examines theoretical foundations of the concept of a circular economy, the directions of its formation in the process of production and consumption of resources, presents the basic principles of the formation of a circular economy and ecological economics. The principles of a circular economy orientate business structures to provide appropriate conditions for redesigning their products at the system level, which, after use, will be ready for reuse or recycling. It has been substantiated that the implementation of the principles of the circular economy makes it possible to identify new sources of value creation and the possibility of obtaining additional profit for business structures: the level of consumption of materials compared to the linear production system is significantly lower; savings by increasing the maximum number of consecutive cycles and saving time for each of these cycles; diversifying the reuse of resources throughout the value chain; the use of environmentally friendly raw materials increases the efficiency of business structures, increases product durability and material productivity. All of this will ensure a high level of environmental protection and reduce the primary need of manufacturing enterprises for external resources. Consequently, the concept of a circular economy constitutes a reliable basis for rethinking business processes in entrepreneurship, contributes to the improvement of the environmental situation, and therefore, the search and implementation of appropriate business models.