Strategic aspects of business development under the conditions of circular economy

Abstract

Nowadays, the transition of business to the principles of circular economy is not only relevant, but also inevitable. The world is changing very quickly, there are transformations and customer requests that respond to the threats and harmfulness of any irresponsible economic activity to the environment. The circular approach will make it possible to find effective ways to reduce costs and enter new markets, including foreign ones. The purpose of the study is to determine the current state and strategic aspects of business development in Ukraine under the conditions of the circular economy. Attention is focused on a significant increase in the future use of natural resources, which is connected with the post-war recovery of business, housing stock and lost things. Therefore, businesses should already take into account such costs due to the need to restore the national economy and ensure an acceptable standard of living of the population. The situation in Ukraine with the generation and management of waste from economic activity is analyzed. Although the state of affairs differs significantly by region. The main difficulties are related to the unsatisfactory condition of the MSW storage facilities and the high costs of new technologies. It was found that the largest amount of waste is generated in the processing industry, the mining industry takes the second place, and the third place is taken by agriculture, forestry, and mining. Therefore, it is assumed that, taking into account such a distribution, the implementation of the circular economy should start with these industries, especially the processing industry. Such a context actualizes the manufacturer's qualitative assessment of its potential for the transition to closed cycles of resource use in modern conditions. It has been established that increasing the effective use of raw materials and energy is achieved by: established control of raw materials and all stages of their use; replacement of raw material components with alternative and less toxic ones; a comprehensive approach to product quality management. The strategic aspects of business that should be planned by the manager under the conditions of the circular economy (choice of business location, production technology, choice of stakeholders, competitive policy and tax planning) are substantiated and analyzed. Keywords: circular economy, business, development, waste management, potential.