The purpose of new business models is to ensure the company’s profit, through the integration of up-to-date strategies. Business models apply to companies, whether they are newly founded or already established. However, on the occasion of the latter status, the company ensures its presence in the entrepreneurial world.
The Role of Circular Economy in the New Business Models
An example of business models that is in line with sustainable entrepreneurship principles, is the circular economy paradigm. In fact, it is a model that deploys non-linear business opportunities, through the adoption of environmentally friendly strategies, with the element of sustainability.
The overall idea behind this economic model is the circular administration of resources. Namely, we refer to administration under the principles of zero-waste and recycling. In particular, among the benefits of this economy type are:
- This business model encourages a management cycle, that integrates usage systems of renewable supply consumption.
- Obviously, we refer to a model founded on principles with environmental respect. For example, it promotes administration practices with the potential of toxic emissions decrease.
- Circular economy encourages processes that enrich natural resources, such as farming systems and so on.
- The zero-waste principle safeguards natural supply reserve. Therefore, this model encourages innovative practices development that promote supply re-use.
- As a business model, its configurations maintain profit levels and products’ high quality.
- Moreover, this model’s configurations extend to the job market demands, with circular economy bringing out new needs that influence the job description’s demands. Therefore, it fortifies employment growth.
- Finally, this model’s innovation influences companies’ business courses. For example, supply changes to renewable ones may lead to more affordable solutions, with the delivery of high standard products and the adoption of eco-friendly approaches. And, most importantly, without compromising customers’ satisfaction.
Apparently, circular economy abides by the pillars of the sustainable development goals (SDGs) formulations, that promote sustainability and innovative strategies that prioritize social, economic, and environmental positive impact, on a global scale.
New business models reinforce entrepreneurial activities, including ventures oriented towards women entrepreneurship. The FIT initiative advocates women entrepreneurship, as the partnership acknowledges their contribution and the significance of equitable societies. In particular, the FIT partners teamed up to empower women’s entrepreneurial activities, using circular economy business models. The initiative’s full title is “FIT: Financial literacy and new business models to boost women entrepreneurship possibilities”.