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The parties concerned must agree on a joint business proposition.
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A A c i i r r c u l l a r r b u s s i i n e s s s s m o d e l l , , i i n e s s s s e n c e , , i i s s a d e s s c r r i i p t t i i o n o f f h o w v a l l u e g e n e r r a t t i i o n a n d
A circular business model, in essence, is a description of how value generation and
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and given the available resources). A circular business model demonstrates the logic of
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a a n d g i i v e n t t h e a v a i i l l a b l l e r r e s s o u r r c e s s ) ) . . A c i i r r c u l l a r r b u s s i i n e s s s s m o d e l l d e m o n s s t t r r a t t e s s t t h e l l o g i i c o f f
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v a l u e g e n e r a t i o n v i a t h e u s e o f a s e t o f b u i l d i n g b l o c k s .
value generation via the use of a set of building blocks.
Often, the above mentioned business models can be very well combined.
O f t e n , t h e a b o v e m e n t i o n e d b u s i n e s s m o d e l s c a n b e v e r y w e l l c o m b i n e d .
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A circular business model, however, consists of several other building blocks, and
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t t together with the contextual factors in which business models exists. The introduction to
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t t this model occurred during the Dutch national research on Business Models for the
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Circular Economy (BMCE) which took place in 2016 and 2017.
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It is worth mentioning the five building blocks:
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Cycles: the core concept of circular entrepreneurship is the organization of cycles in
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w h i c h p r o d u c t s , c o m p o n e n t s , o r ( r a w ) r e s o u r c e s m a y b e u s e d r e p e a t e d l y . T h e n a t u r e
which products, components, or (raw) resources may be used repeatedly. The nature
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of the cycle, as described above, determines how frequently it occurs and at what
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cost.
Value: Organizations that strive for numerous value creations, including social, Organizations that strive for numerous value creations, including social, Organizations that strive for numerous value creations, including social,
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t t term value cannot be described as a circular business model. They make no
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contribution to an economy that runs within the confines of the earth.
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Strategy: It is critical that the point of sale of a product is no longer the primary
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product's existence. This Creating implies a greater long-term engagement with one or
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Organisation: a CBM (Coordinated and cooperative organisation) requires the
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structures, but also pay-per-view, pay-per-print, and so on.
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