Recently the circular economy has got a lot of attention within discussions of policy makers, academics and practitioners. The circular economy proposes the treatment of environmental and climate change problems, simultaneously promising benefits for the business. The circular economy promotes the reduction of the consumption and reuse or recycling of the resources that in various aspects contradicts traditional business models that stream to linear growth of sales of their products. Yet the circular economy concept has been more discussed regarding its global scale, but there is a lack of scientific discussions about the approaches of the adoption of circular economy principles on the business level. This paper conceptualises multi-level dimensions of the circular economy and highlights challenges related to the perception of the circular economy principles in the micro business level. The conducted research shows that rural SMEs of six EU countries have rarely heard about the circular economy and even less about circular business models. While rural SMEs are more familiar with the bio and green economies forming good base for developing circular business models, they are reluctant towards introducing new business models. This paper aims to assess the level of the advancement in introduction of the circular business models among rural SMEs of EU countries. This article emphasizes the circular economy as an inseparable part of the business models of rural SMEs and rural economies of EU countries. This study has a policy implication as we suggest that the government should play an important role in promotion of circular business models in rural SMEs. The existing public support system is fragmented, and in most cases just incidentally encourage rural SMEs to adopt new circular business models. Also, the circular economy on a local level, especially in rural areas, has an important role in ensuring social wellbeing of local inhabitants. The methodological approach and research results presented in the paper can be used further developing EU support system and priorities beyond 2020.

Adoption of innovation plays a crucial role in the transformation of the countryside towards a knowledge economy. However, rural SMEs experience various obstacles that hinder the adoption of innovation. The aim of this paper is to identify the main challenges and opportunities for the introduction of innovation in rural SMEs. The evidence is drawn from relevant literature and stakeholder discussions covering six European countries (Bulgaria Czech Republic, Hungary, Italy, Latvia and Slovenia). The main challenges in adopting innovation in rural SMEs are shortcomings in the environment for innovation, inappropriate innovation policies and support measures, lack of knowledge and skills within companies, difficulties to hire a new skilled work force and low competitiveness compared to urban counterparts. Consequently, policy recommendations are proposed for promoting innovation in rural SMEs by focusing on cooperation and networking, information and training, innovation support programmes, marketing and sales promotion and availability of workforce. DOI: http://dx.doi.org/10.5755/j01.ppaa.18.1.23134

No abstract

This article provides a practical example of the development of cross-border tourism and its link to achieving sustainable development goals. Greenways (GWs) are successful and recognized initiatives in Western Europe, but have recently also shown development trends in Eastern Europe, notably, in the Baltic Sea Region and Russia. These initiatives improve the quality of life and provide opportunities for sustainable economic activities for the local communities, especially in rural areas, adding value to their natural, cultural, historical and human heritage. The authors studied examples of best practice in scientific literature and practice, encouraging the development of cross-border tourism and GWs in Europe and Russia, in order to further adapt it to other continents. Analyzing the environmental, economic, social and institutional factors in the region and their role in sustainable development, the need for institutional regulation that would allow the development of a wider development of GWs is identified. Research results reveal sustainable development dilemmas of positive socioeconomic effects of GWs and negative environmental effects of increased flows of tourists. Focus groups and expert interviews allowed us to assess the level of various factors contributing to sustainable development and clarify the directions of the future research.

The COVID-19 pandemic has been one of the most unprecedented crises of recent decades with a global effect on society and the economy. It has triggered changes in the behavior and consumption patterns of both final consumer and industrial consumers. The consumption patterns of industrial consumers are also influenced by changes in consumer values, environmental regulations, and technological developments. One of the technological highlights of the last decade is biocomposite materials being increasingly used by the packaging industry. The pandemic has highlighted the problems and challenges of the development of biocomposites to adapt to new market conditions. This study aims to investigate the industrial consumption of biocomposite materials and the influence of the COVID-19 pandemic on the main stages of the value chain of sustainable industrial consumption of biocomposites. The research results reveal there is a growing interest in the use of biocomposites. Suppliers and processors of raw materials are being encouraged to optimize and adapt cleaner production processes in the sustainable transition pathway. The study highlights the positive impact of COVID-19 on the feedstock production, raw material processing, and packaging manufacturing stages of the value chain as well as the neutral impact on the product manufacturing stage and negative impact on the retail stage. The companies willing to move toward the sustainable industrial chain have to incorporate economic, environmental, social, stakeholder, volunteer, resilience, and long-term directions within their strategies.

The development of a sustainable economy and the efficient use of resources are now playing an increasingly important role in the circular economy. Unlike the linear economy, the economy contributes to keeping the value of products, materials, and resources in the economy as long as possible, while at the same time reducing both waste volume and raw material consumption and their environmental impact. The topicality of the research is illustrated by the limited amount of natural resources, climate change and sustainable economic growth, which is pursued by both countries and companies. It is in the economic interest of society as a whole to use existing resources in the best possible way. In addition, the introduction of the circular economy is expected to open up broad opportunities for economic growth for both businesses and consumers. The transition to a circular economic business model requires investment. Funding can be raised through different types of projects, but there is little or no information available in the public area about where and how to obtain financing for circular economy–related projects and what are the general benefits for the company from environmentally–friendly activities.

Nowadays cities face numerous challenges amplified to build necessary urban municipal and community capacity to ensure sustainability transformation to respond to the local and global challenges of climate change, inequality, and access to resources. This research combines the study fields of sustainability, economic development, governance of sustainability transformation, providing the multidisciplinary approach as a systemic-oriented view encompassing the social, technological and ecological aspects of urban transformation. The purpose of the paper is to explore how the concept of urban transformation could be operationalized for research of economic development under the economic strain assuming the emergency of Covid-19 grand challenge. The research methods used are a systematic literature review and the content analysis. The paper provides a detailed characterization of the urban transformation exploring this concept from the structure and system perspectives for the economic exit from the crisis.

Depleting natural resources and large amounts of waste increase the environmental pressure affecting the economy and humans. Emerging sustainability challenges require new behavioural patterns from both the business and consumers. Responding to these constraints, the circular economy is promoted as a new way towards a sustainable future. While the circular economy provides new principles for improving resource efficiency and reducing waste, most of companies run traditional business models with the perception that competitive advantages can be achieved by increasing production. Instead circular business models seek for increase of profitability and efficiency through adapting various business model innovations. However, their adoption process and results are unclear for many industries highlighting the topicality of this article. This research shows that milk processing companies lack an experience and understanding of benefits and challenges of circular business models. In milk processing, the whey is considered as problematic waste or the production leftover, which requires new treatment. The research provides analyses of the whey recycling circular business models that ensured new revenue streams, higher profitability, return on assets and competitive advantages for milk processing companies. The COVID19 pandemia increases the importance of this issue as the dairy industry due to livestock requirements shall ensure business continuity despite a crises or other risks that slowdown the business.