Towards a new framework of circular economy

Abstract

Although governmental institutions are talking loudly about the importance of businesses moving towards sustainability and adopting a circular economy (CE) approach, moving towards CE can take time for business companies. Business entities must review their business ideas and the possible implementation and adoption of their business processes towards more sustainable business activities. Adapting various sectors' business models towards the circular economy is not easy, and in many cases, there is a lack of motivation from business entities, as well as the knowledge and lack of confidence in starting changes, which can question the profitability of changing businesses. The difficulty of transition can be seen in various discussions in scientific publications. This article uses the literature review approach, comparison, synthesis, and analysis methods to collect and analyse CE principles and processes. The main goal of this article is to systematize all possible processes approaching CE in businesses and suggest a framework for CE, attributing processes into creative and technological categories. This created framework can better help business entities moving towards CE to plan the implementation of various business activities, reviewing and improving business ideas while preparing to move towards the CE approach. After analysing, systematizing, and comparing scientific literature about CE, a framework was developed that embraces a variety of processes that can ease changing business actions moving towards CE. The developed framework identifies two creative CE processes, six technological processes and one combined process containing creative and technological features.