The Difference Between Linear & Circular Economy

The world population is booming and at the same time it is draining out the Earth’s natural resources at an alarming rate. The growing human need for food, water, housing, clothing, and recreation takes a heavy toll on the environment. These are the reasons why many countries have decided to switch from linear to circular economy.

What is the linear economy?

It is not called linear because it has been around for a long-long time. It is a traditional model based on the ‘take-make-consume-waste’ approach to using resources. The raw material is transformed into a product and after it ends its life cycle is thrown to waste. What experts and non-experts know for sure is that if the model is not replaced, the world will approach a tipping point where it will lose the capacity to sustain itself.

The transition from linear to circular economy goes through the reuse economy approach.
The model adds a new link to the linear economy approach. The raw materials are transformed into a product that is recycled when it ends its life cycle into a new product, but after that stage, it is thrown away.

The purpose of a circular economy is to prevent waste. Manufacturers have designed reusable products and when a new product is needed, it has to be obtained sustainably.  Hence, when the raw material enters the cycle, it must follow the production-use-recycling-production cycle.
The circular economy is more profitable and less harmless to the environment and its main goals include sustainable economic growth, increased competitiveness, and new jobs.

The circular economy needs joint efforts by entrepreneurs, researchers, industries, users, government, civil society, and lawmakers, but most of all it needs innovation. You can promote much-needed change in your society if you learn how to think innovatively. Take our free online training to gain an entrepreneurial mindset and to understand better what sustainable entrepreneurship means.