University of Twente Student Theses
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CIRCLE Framework : Navigating the Trade-off Between Sustainability and Profitability in Circular Business Transitions
Grobben, B.A.J. (2025) CIRCLE Framework : Navigating the Trade-off Between Sustainability and Profitability in Circular Business Transitions.
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Abstract: | This thesis explores how companies manage financial trade-offs between sustainability and profitability when shifting from linear to circular business models (CBMs). While CBMs promise long-term benefits, like cost savings, new revenue, and risk reduction, they also involve short-term challenges, including high upfront costs and uncertain returns. These trade-offs depend on factors such as firm size, sector, and regulatory support. To help firms navigate this complexity, the study introduces the CIRCLE Framework: a six-phase model (Consider – Identify – Redesign – Calculate – Launch – Evaluate) designed to guide circular transitions. Grounded in a systematic literature review of 31 academic sources, the research identifies key financial barriers and drivers, showing that large firms often benefit from scale and resources, while SMEs can leverage flexibility and niche opportunities, if supported by appropriate policies and financing tools. The thesis concludes that balancing short-term financial strain with long-term strategic gains is essential. The CIRCLE Framework provides practical guidance for managers, financial planners, and policymakers to implement financially viable circular strategies. |
Item Type: | Essay (Bachelor) |
Faculty: | BMS: Behavioural, Management and Social Sciences |
Subject: | 85 business administration, organizational science |
Programme: | International Business Administration BSc (50952) |
Link to this item: | https://purl.utwente.nl/essays/106906 |
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