What is a circular economy?

Of all items made in the Netherlands, less than 10 per cent are made from materials that have been used before. More than 90 per cent of raw materials come from mines, wells and springs, and are therefore not available indefinitely. So in the short or long term, alternatives must be found for them.

Much value is lost in the clink

At the other end of the chain, waste continues to grow steadily. Raw materials that have been painstakingly extracted from the ground, then processed, transported, packaged, sold and briefly used, are soon after in the dustbin again. Some of that waste goes straight into the furnace.

The raw materials that do get recycled are not always of the same quality as 'vrgin' materials anymore, and sometimes they cannot match the bulk imported at rock-bottom prices in terms of price either.

It is not difficult to see that a huge amount of value is lost in this economic process. Companies that manage to make improvements in this will achieve success in a new, circular economy.

Waste processors are resource experts today

Initially, one thinks of companies dedicated to processing other companies' waste streams. Not for nothing do former waste processors nowadays call themselves raw materials experts. And they are right: there is more gold in discarded mobile phones than in gold ore. The same goes for other materials, such as silver. There is quite a bit to be gained from efficiently purifying those streams of 'waste'.

Less raw materials is even better

Recycling of raw materials springs to mind, but that is only one part of a circular economy. Those who really want to save raw materials naturally try to use them as little as possible. This is often possible: why wrap bananas in a plastic bag? They are already in a fine peel. By giving up all kinds of superfluous packaging or parts, you can save a lot.

In the circular economy, extend the life of appliances

Another, often underestimated, aspect of a circular economy is extending the lifespan of appliances. Many industries and companies grew up in the days of the linear economy, and these benefit -simply put- from making their products as bad as possible. After all, the sooner a mobile phone, washing machine, bicycle light or fridge breaks down, the faster they can sell a new one. This 'planned obsolescence' is still not banned, but the EU has now tightened its consumer product quality guidelines.

Repairing broken stuff is another thing: many electronic components are glued together, so they cannot be fixed if one part breaks. For a circular economy, the reparability of stuff needs to become much better than it is now.

Other business models in the circular economy

There are opportunities for entrepreneurs in every step of the circular production process. Repair shops will flourish if items that can still be patched up are not immediately thrown away, but enter the market as vintage or refurbished. Companies that make rock-solid products may be able to adjust their business model by leasing their stuff instead of selling it. And residual flows from one company are raw material flows for another: marketplaces and brokers jump on this.

All in all, then, the circular economy offers plenty of opportunities for inventive entrepreneurs. The throwaway society is still quite ingrained in our economy, but the cracks are clearly visible. What shall we do with these outdated, polluting, linear economic systems? A little patching up is insufficient. Into the dustbin with it? Reuse a few parts and reinvent the rest? Circular entrepreneurs, you tell us.