What’s the difference between a linear economy and a circular economy? And why does that matter to a small business? What can a small business owner do to make their company more circular? Let’s find out.
A liner economy vs a circular economy
The main difference between a linear economy vs a circular economy is handling of materials and waste.
In a linear economy, raw materials are sourced from virgin materials, manufactured into products, used and then disposed of. This is cheaper than worrying about how sustainable materials are and what happens to the waste products.
In a circular economy, the focus is on reusing materials, longevity and recycling. Here the focus is on buying sustainably produced and recyclable materials. This can mean paying a premium for fairly traded produce or FSC-certified wood. It can also mean exchanging one material for another that is biodegradable or recyclable.
In a circular economy, the product can be designed for longevity. It can be designed so that it is easy to repair, refurbish or reuse in some way. At the end of the product life cycle, the materials can either be recycled or safely disposed of. Examples of this are compostable packaging, furniture that can be upcycled or using aluminium cans which can be recycled instead of plastic containers.
Small business and the circular economy
All businesses of all sizes should be mindful of the way that they produce products. A small business has advantages and disadvantages. It does not have the financial pull of a large corporate buyer when buying materials. On the other hand, a small business owner has more control over the manufacturing process and can make ethical choices without answering to shareholders.
What can a small business do to be more circular?
Think about your supply chain – where do you buy materials from and are there any sustainable alternatives that are affordable. For example, Blue Patch members upcycle waste materials from other members (and other businesses). An example is Kapdaa who use fabric offcuts to make totes and notebook covers.
Establish closed loop systems – can you send containers back to the supplier for them to refill, rather than binning the container and it ending up in landfill. This works for consumers as well as business-to-business. At the Bio-D company businesses can send back 20 litre plastic containers to be cleaned and refilled in a ‘no brainer container’ initiative.
Design durable products – build longevity into the product design by making them strong, recyclable or repairable so that their lifespan can be extended. A number of our furniture makers design furniture that is built to last. It is beautiful and contemporary in style so it can be handed down through the generations.
Educate your customers – there will inevitably be questions from the consumers about why a product is made the way that it is. This is an opportunity for you to educate your customers about the choices you have made to be circular and why it is important for the environment. Provide incentives for customers to return items. Pip & Henry who make children’s shoes from natural and sustainable materials like pineapple offer a voucher to every parent who returns shoes.
Why a linear economy vs a circular economy matters
We cannot afford to continue with a linear economy. It uses too many of our natural resources and produces too much waste. It might be cheap, but it costs us our future. By implementing a circular economy in our businesses, we can reduce carbon emissions, reduce waste and save our natural resources. Join our net zero journey today.
