New Industrial Business Models: From Linear to Circular Economy Approach

In the growth of the Industry 4.0 transformation the economy has become to changed. Thus, not just the economy regulations are fostered but a new business approach has been arisen: the circular / regenerative economy approach. The EC already reacted as it introduced not just updated Sustainable development indices but a new set of indices: circular economy indices. According to this change of the economic model, the business organizations are fostered to change their business models, especially for the industry. Thus, not just the new regulations have to be introduced to the industrial business model but the total change of the added value of the business as introduction of green technologies or innovations for non-waste production value chains. Aim of the paper: to identify and to analyze the requirements to the business that foster them to change their linear business model to circular one. Methods: descriptive analysis of the Bulgarian economy according to circular economy indices; comparative analyses for identification of main differences between linear and circular economies; induction and deduction of the elements of business models. Results: analysis of the indices of circularity of the Bulgarian economy; analysis of requirements for transition from linear to circular economy; identifying requirements to the business model of a circular economy; systematizing rules / guidelines for transforming the business model of a linear economy into the business model of a circular economy. Conclusions: The indicators of the circular economy can be considered as a part of the harmonization process in the EU. Avoiding from the responsibilities of the circular economy approach by Bulgarian industry leads to moving away from the EU economies. This requires relevant national policies, measures and instruments to promote the transformation of the business model to circular one. The paper aims to present the need of industrial business model change as to analyze the starting position of the Bulgarian industry. Thus, the structure of the paper is following: 1. Introduction to Circular economy indices. 2. Definition of Circular economy approach. 3. Analysis of the Circular economy indices change for Bulgaria. 4. Introduction to business model change from linear to circular one. Conclusions.