BUSINESS MODELS OF CIRCULAR ECONOMY IN ENSURING SUSTAINABLE DEVELOPMENT OF AGRICULTURAL ENTERPRISES OF UKRAINE

Abstract

In the context of growing demand for food, environmental pollution and the need to save resources, the circular economy model is becoming relevant to support Ukraine’s agriculture. However, the concept is not yet fully adapted to the needs of the agricultural sector of the economy. The aim of the study is to structure information on existing agricultural business models based on the principles of sustainable development, followed by the identification of circular business models and to identify the most likely cross-links between micromodel units and macromechanism elements. Achieving of the realization of Sustainable Development Goals is based on a balanced combination of the introduction of advanced technologies, interest in investing in sustainable practices and encouraging economic patriotism. Based on the best practices of the business models implementation both in Ukraine and abroad, the study reviews approaches to model classification, establishes the relationship between elements of the state and market mechanisms of sustainable development of agricultural enterprises with individual blocks of the circular business model and identifies expected benefits associated with the implementation of the principles of a circular economy based on the triple bottom line of sustainability (ie economic, environmental and social). Cases of using sustainable practices in the activities of Ukrainian agricultural enterprises in the areas of production of organic products, feed, production of alternative energy sources – biogas, bioethanol, etc. are analyzed, together with the opportunities for digitization and organization of work on the principle of joint use. The advantages of the circular business model, as opposed to linear, are a combination of three dimensions of sustainability, value creation for all stakeholders, not just owners, and the formation of a systemic perspective through the development of economic, social and environmental relationships to form a new sustainable environment.