What are circular business models?
In a circular economy, your business focuses on strategies that preserve the functionality and value of your product for as long as possible.
Circular business models are different for every business, typically comprising a mixture of different strategies that can be sorted into three main categories:
- sustainable material management strategies: strategies that directly affect material and product resources within the business model
- business strategies: strategies that help deliver circular value to the customer
- value network strategies: strategies that encourage businesses to engage with outside stakeholders to create circular value networks
Want to explore the possibilities for yourself? And find the circular business model that fits? Visit the Circulator.
What are the benefits of focussing on a circular business model?
Sustainable products and brands are becoming increasingly appealing to consumers.
A circular business model can be less sensitive to price fluctuations of raw materials.
As a business, you become less dependent on primary raw materials, which often have to be imported, as you are using fewer basic raw materials and/or making use of recycled raw materials as part of production.
Case study: The Sociaal-Circulaire Hub Kempen
The Sociaal-Circulaire Hub Kempen+ is a network of businesses, local authorities and experts, serving to identify the opportunities and needs of a circular economy.
It pays particular attention to the added value that the social economy can achieve via circular channels. The Hub translates this into new, sustainable business opportunities that boost employment within the wider Campine region.
The Hub works on practical issues, creating new, sustainable business opportunities that boost employment within the Campine region. As a knowledge partner, VITO acts as a key contributor to the Hub, inspiring and informing companies to begin implementing circular activities, while also applying their expertise to entrepreneurs' questions.
How do we achieve this?
1) Detecting and compiling circular ideas, opportunities and needs
To create tangible social-circular business models, the Hub initially requires input from the wider sector.
- Is your company committed to circular entrepreneurship?
- Want to reduce company waste, but don't know how?
- Already working on a circular business model, but are missing some crucial pieces of the puzzle?
- Curious as to what role a specialised company can play as part of this process?
- Is your business active in the social economy and can you envisage opportunities in collaborating on matters of circular economy?
- Have you got any other needs or ideas?
2) Realisation of tangible case studies and development projects
For each case, the partnerships and financing needed to set up profitable circular business models with a social component are examined.
3) Inspire and connect through activities
The Hub regularly organises activities ranging from inspiring talks and hands-on workshops to matchmaking events. Where necessary, we focus specifically on specific aspects of circular channels, such as the possibility of a learning network on circular packaging.
4) Sectors of interest
While the Hub remains open to multi-sectoral opportunities, it focuses primarily on five sectors: waste & recovery, metals, construction, food and wood & furniture.
5) Inspirational partners
Our partners within the Sociaal-Circulaire Hub Kempen+ include Blenders, Thomas More, the Open Manufacturing Campus, UNIZO Provincie Antwerpen, Lidwina and City District Turnhout.
More information about the circular economy
The circular and biobased economy in practice
The circular and biobased economy in practice
VITO helps governments and companies to make the transition to circular thinking and develops circular business models. We also support innovation that transforms waste streams into raw materials and basic materials for new or existing products.
