Implementing circular business models in uncertainty: challenges and opportunities

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№ 2, 2026

Authors: Olha MELNYK, Mariana RUDA

Issue: № 2, 2026

Doi: https://doi.org/10.37634/efp.2026.2.7

The paper examines the features of the implementation of circular business models by Ukrainian manufacturing enterprises in conditions of economic and geopolitical uncertainty. The key principles of the circular economy are analyzed, the main challenges and opportunities for the transformation of traditional linear production models are identified. Particular attention is paid to the adaptation of international experience to the specifics of the Ukrainian business environment, taking into account the state of war, the energy crisis and the processes of European integration. Practical recommendations are proposed for stakeholders regarding the phased transition to a circular economy, taking into account limited resources and a high level of uncertainty. The implementation of circular business models in a stable environment is a rather complex challenge, requiring significant investments, organizational changes and the transformation of established practices. In conditions of uncertainty, these challenges multiply, but at the same time unique opportunities appear. The crisis creates "windows of opportunity" for radical innovations. The destruction of existing structures reduces inertia and opens up space for alternative models. Resource scarcity and disruption of traditional supply chains force the search for local circular solutions. The growth of environmental awareness and the prioritization of sustainability in post-war reconstruction create a favorable context for circular initiatives. At the same time, uncertainty generates specific barriers: limited access to capital, short-term planning horizons, a focus on survival instead of innovation, insufficient institutional support, and a breakdown in coordination in value chains. Understanding the dialectic of challenges and opportunities is critical for a successful circular transformation. Circularity can be not only a response to sustainability, but also a strategy for increasing resilience and competitiveness in a turbulent environment. Diversification of resource sources, localization of production, and extension of asset lifecycles reduce vulnerability to external shocks. The Ukrainian context creates a unique combination of challenges and opportunities for circularity. War damage generates huge amounts of materials for secondary use in reconstruction. Resource scarcity and limited imports highlight the value of local circular cycles.

Keywords : circular economy, circular business models, sustainable development, management under uncertainty, ecological transformation, resource efficiency

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