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Austria is adopting the circular economy slowly: with a Circular Material Use Rate of 10.8 % in 2020, the country stayed behind the EU27 average of 11.7 %. One reason is the comparatively low uptake of circular business models in the Austrian economy.
Models in waste management and recycling are successful across Austria and internationally recognised. Models that keep resources at a higher functional level - through reuse, repair or refurbishment - and therefore cut material consumption in absolute terms are still rare.
Backed by an FFG grant, Thinkubator worked on exactly that gap: small and medium-sized enterprises lack an offer that helps them see the potential of circular business models and get over the hurdles to implementing them.
FROM THE PROJECT
Circular business models rarely fail on the idea - they fail on financing and planning certainty.
FINANCING CIRCULAR BUSINESS MODELS
The challenge for SMEs
Small and medium-sized enterprises face central hurdles when introducing circular business models: besides a lack of awareness of the benefits, missing financing and planning structures hold the transformation back.
Our research questions
We analysed these and further key questions together with experts and companies.
- How can we build a robust framework that demonstrates the financial viability of circular business models to financial stakeholders?
- How can we help banks and entrepreneurs identify and present bankable, taxonomy-compliant circular business models?
The solution: the Circ-Risk tool
To overcome the identified hurdles we developed the Circ-Risk tool. It makes the specific risks and opportunities of circular business models visible, helps prove their financial viability and builds trust with investors. Our aim is to improve the financing situation for circular business models and support SMEs in implementing sustainable strategies.
CBM+ report
The findings and solutions from the project are summarised in the report.
PDF, GermanFFG IMPACT INNOVATION
The project was made possible by a grant from the Austrian Research Promotion Agency (FFG).
Carried out by Thinkubator - Verein zur Forschung und Umsetzung nachhaltiger Lösungen.
QUESTIONS ABOUT CBM+?
The project is completed - we are happy to share the report, the methodology and the Circ-Risk tool.
Bastien Huber
Research and consortium projectsGet in touch if you want to make circular business models bankable or try out the tool.