Circular economy as a basis for sustainable development of the entrepreneurial environment

Abstract

The transformation of economic systems is driving the need to shift from linear business models to resource-efficient approaches that ensure long-term economic stability and minimise negative impacts on the natural environment. One of the key instruments of such transformation is the circular economy, which promotes closed material cycles, increased product reuse, and reduced waste volumes. The relevance of this topic is determined by rising resource risks, ecological constraints, and the need to develop a competitive model for entrepreneurial sector development.

The study aims to comprehensively substantiate the impact of circular principles on the formation of sustainable business models and to identify institutional prerequisites that ensure systematic implementation of resource-saving practices in the entrepreneurial environment.

To achieve the aim, methods of structural-functional analysis, systematisation, economic modelling, and comparative assessment were used. The methodological basis consists of the principles of sustainable development theory, concepts of resource efficiency, and approaches aimed at integrating ecological criteria into the economic planning of enterprise activities.

The article substantiates the role of circular practices in enhancing the business sector’s adaptability to external challenges and strengthening enterprises’ economic resilience. Key mechanisms for improving resource circulation efficiency include optimising material flows, developing service-oriented business models, and implementing innovative recycling and reuse technologies. Institutional barriers hindering the spread of circular models are analysed, and tools to overcome them are proposed through improving regulatory frameworks, expanding financial incentives, and forming partnership ecosystems among enterprises.

It is demonstrated that integrating circular approaches provides the basis for developing a sustainable entrepreneurial environment, reduces resource dependence, and enhances enterprises’ competitive advantage. Systematic implementation of circular solutions requires coordinated actions by the state, businesses, and the scientific community, the development of innovative infrastructure, and support for investment in environmentally oriented technologies. The obtained results can be applied to the development of enterprise sustainable development strategies and to improving operational efficiency under resource constraints.