WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 16, 2019
Assessment of an Enterprise Circular Economy Development
Authors: Vladimir Koksharov, Natalia Starodubets, Maria Ponomareva
Abstract: Currently, much attention is paid to a circular economy development at the level of economic sectors. In this regard, the implementation of the circular economy business model within an enterprise becomes a key factor for a country competitiveness increase and a guarantee of a sustainable economic growth. There has been drawn a hypothesis that energy efficiency and energy savings of an enterprise have a significant influence on the circular economy development. In the paper authors propose a representative set of economic and energy indicators, which allows to assess a circular economy formation of an industrial enterprise. Authors suggest an approach according to which the resulting vector of a circular economy of an enterprise may be assessed by the growth rates of the indicators mentioned above. Based on this, it may be possible to make an integral assessment of an enterprise circular economy development through the ratio of the optimal growth rate of the closed cycle indicators characterizing a circular economy ( n opt ) to the total number of growth rates indicators required for the identifying of a circular economy of an enterprise (n total). In the paper authors also present theoretical model of closed large enterprise cycle. Authors also propose different types of investment projects aimed to implement a circular economy model on an enterprise. For this reason, additional criteria for investment project, based on the above-mentioned indicators of a circular economy, were suggested. The proposed approach makes it possible to conduct an assessment of innovative business model formation of an industrial enterprise in order to determine its sustainable development towards a circular economy.
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Keywords: circular economy, small cycles, business models, growth rates, criteria, investment projects
Pages: 559-567
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #63