Considering the frequently changing business environment, staying competitive on the current markets takes more efforts from companies in the 21st century. Conducting only incremental product innovation does not meet the market criteria anymore. The successful entrepreneurs of the future must focus more on the design of their business models to gain superior economic performance. Besides the market, society has also raised a major requirement towards companies, which is being socially responsible. The word ‘sustainability’ regarding businesses might confuse a lot of people as several aspects of the term reach beyond its traditional economic interpretation. The present study provides a clear explanation and furthermore examines its application at a corporate level. This paper aims to present how business model innovation does not simply lead to economic success but its generated value can be extended to social and environmental aspects as well.
In recent years, there was an increase in economic concepts which defined various concepts for the European Union to leave the economic depression behind. The idea of circular economy boomed into the sight of European Union policy makers in the beginning of 2015. The notion introduced a holistic system planning approach for EU development initiatives. This paper introduces the essential background for the interpretation of circular economy and presents the main priorities throughout its implementation. The size of the European Community leaves many opportunities for the reconsideration of circular processes. The study focuses on circular applications in Hungary which substantially differ from the Western-European practice. The different wage and development levels of the member states in some cases might appear as a possibility to extend product life cycles which otherwise would end sooner. The analysis aims to find the reasons for the variant operations and examines how the extended spatial perspective from national levels to the EU level influences the transition to circular economy.