CIRCULAR ECONOMY DRIVEN INNOVATIONS WITHIN BUSINESS MODELS OF RURAL SMEs

Abstract

The competitiveness of rural SMEs is low due to economic inefficiency and the lack of innovations. The main challenges faced by rural SMEs are the limited scale, the distance form larger sales markets, R&D and business support institutions, and the lack of innovative spirit. The circular and bio-economies are shaping the rural SMEs towards the environmentally friendly and eco-efficient production, the minimization of the generation of waste and less use of natural resources. This potential of the adoption of new business models within rural SMEs is not fully observed.The aim of this research is to analyse the opportunities of rural SMEs in introducing the innovative business models driven by the circular economy. This research explores the innovative business models of rural SMEs that transform the environmental challenges in business opportunities and keep a balance with the growing consumption needs. The results of the research are of both theoretical and practical value, providing recommendations for facilitation of innovative business models within rural SMEs. The research methods: desk research, statistical analysis, a grounded theory approach, case study, primary data gathering through seven focus groups with more than 200 stakeholders from six European countries.

Out of Uzbekistan: The Barriers of Adopting Circular Business Practices in Rural SMEs

“…The purpose of the CE is to ensure that manufacturing and production make the best use of resources. This involves extending the economic life of goods, materials, and natural resources, which attempts to cut waste substantially (Uvarova et al, 2019;Kalmykova et al, 2018;Bocken et al, 2019).…”

“…In circling back to equitable economic growth through CE business model convergence, it aids in the reduction of waste in the industrial ecosystem by repurposing commodities at their obsolescence (Cudecka-Purina et al, 2019;Ritzen & Sandstrom, 2017;Stahel, 2016). In particular, the CE aims to maximize the reuse and recycling of products, materials, and natural resources during the manufacturing and production stages, hence decreasing excess waste generated (Uvarova et al, 2019;Bocken et al, 2019;Kalmykova et al, 2018). Sustainable development, environmental stewardship, and societal and economic success for present and subsequent generations are just some areas where research has highlighted CE's long-term benefits.…”

“…While numerous attempts have been made to define CE on a macro or meco dimension, the micro viewpoint has been less well described in past research. New business models can be developed on a micro-scale to aid in the advancement and encouragement of CE (Uvarova et al, 2019;Schroeder et al, 2019). The need to develop a business model has arisen due to this conversation.…”

Models Underlying the Success Development of Family Farms in Romania

“…Other obstacles faced by small farms are long supply chains and hygiene rules [14]. Moreover, little political support is available for small farms, with subsidies being directed towards large agricultural companies [15,16]. However, it is believed that small farms can become viable with good planning [17].…”