Challenges of the introduction of circular business models within rural SMEs of EU

Recently the circular economy has got a lot of attention within discussions of policy makers, academics and practitioners. The circular economy proposes the treatment of environmental and climate change problems, simultaneously promising benefits for the business. The circular economy promotes the reduction of the consumption and reuse or recycling of the resources that in various aspects contradicts traditional business models that stream to linear growth of sales of their products. Yet the circular economy concept has been more discussed regarding its global scale, but there is a lack of scientific discussions about the approaches of the adoption of circular economy principles on the business level. This paper conceptualises multi-level dimensions of the circular economy and highlights challenges related to the perception of the circular economy principles in the micro business level. The conducted research shows that rural SMEs of six EU countries have rarely heard about the circular economy and even less about circular business models. While rural SMEs are more familiar with the bio and green economies forming good base for developing circular business models, they are reluctant towards introducing new business models. This paper aims to assess the level of the advancement in introduction of the circular business models among rural SMEs of EU countries. This article emphasizes the circular economy as an inseparable part of the business models of rural SMEs and rural economies of EU countries. This study has a policy implication as we suggest that the government should play an important role in promotion of circular business models in rural SMEs. The existing public support system is fragmented, and in most cases just incidentally encourage rural SMEs to adopt new circular business models. Also, the circular economy on a local level, especially in rural areas, has an important role in ensuring social wellbeing of local inhabitants. The methodological approach and research results presented in the paper can be used further developing EU support system and priorities beyond 2020.publishersversionPeer reviewe

FINANCIAL VIABILITY OF CIRCULAR BUSINESS MODELS IN TYRE RECYCLING INDUSTRY IN LATVIA

The end-of-life (EOL) tyre recycling industry in Latvia is encountering economic and sustainability challenges, which require solutions by various stakeholders. Improvement of tyre waste management and recycling is important within the context of sustainability and the new streamlining of circular business models. Its importance is also recognized at the European Union level in relation to the further strategic goals and the European Green Deal. In addition, the tyre recycling industry in Latvia demonstrates a relatively unfavourable financial situation, which is one of the most significant factors hindering the introduction of new circular business models. The aim of this research is to clarify the challenges related to the financial viability of tyre recycling companies adopting the new circular business models. The main research methods are literature review, semistructured in-depth interviews, case studies and financial analyses. There are large stocks of EOL tyres and on average just 50 % of them are recycled. The tyre waste management companies are not motivated to supply EOL tyres to recycling companies. On the other hand, due to various reasons, most of the tyre recycling companies are not working with their maximum production capacity. The research results reveal that the tyre recycling companies mostly run traditional and inefficient business models that require large operating costs and ensure comparatively low profitability. In order to enable more efficient and environmentally friendly tyre recycling process, the companies should implement new, investment intensive technologies. Yet, they face critical issues of liquidity and financial returns. Major conclusions are related to the necessity to develop several business models interlinked within one portfolio thus ensuring the manufacturing of various products with higher added value and quality. This may maximise the profits and improve the financial viability of tyre recycling business modelspublishersversionPeer reviewe

End-of-life tyre recycling : Going beyond to new circular business models in Latvia

Funding Information: Many thanks for the opportunity to conduct and publish this research to BA School of Business and Finance (Latvia) with the research project ?Management of Circular Business Models and Projects within Economy of Latvia?, and Liepaja University (Latvia) with the project ?Promotion of research, innovation and international cooperation in science at Liepaja University (No 1.1.1.5/18/1/018)?. Publisher Copyright: © 2020 Latvia University of Life Sciences and Technologies. All rights reserved. Copyright: Copyright 2020 Elsevier B.V., All rights reserved.The end-of-life tyre recycling industry in Latvia faces significant issues on a national level and on a micro business level. The aim of the research is the clarification of opportunities for new circular business models within the tyre recycling industry in Latvia. The main research methods are literature review, semi-structured in-depth interviews, case studies, content analyses, and quantitative statistical analyses, qualitative and descriptive analyses, allowing providing integrative interdisciplinary assessment. In addition, design-thinking methods contributed to conclusions on future opportunities of new tyre recycling business models. The research shows that the system is insufficiently supervised, and it does not facilitate the development of new environmentally friendly technologies and circular business models. A large share of tyres ends up in waste landfills, are incinerated or illegally stored, whereas only a small number of them are recycled. The traditional tyre incineration methods are ineffective and create adverse effects on the environment. Tyre recycling companies in Latvia are not active in adoption of new technologies and business models. This justifies the topicality of the research problem. The research results reveal that globally new opportunities are being actively explored on how to produce higher added value products from materials obtained in the tyre recycling process. In Latvia, it is possible to develop new financially viable circular business models in tyre recycling industry, for instance, by producing tyre-derived aggregates for construction materials or pavement subbases. Besides the need for dynamic innovation capabilities of entrepreneurs, development of new business models in tyre recycling requires collaboration among various stakeholders. In addition, the government has a significant role in implementing the Green Public Procurement for the industries utilizing products gained as a result of tyre recycling.publishersversionPeer reviewe

COLLABORATION COMPETENCIES AND GREEN BUSINESS MINDSET

INTRODUCTION There is increased international pressure to develop sustainable and circular businesses. This raises the question of entrepreneurs’ green awareness and the ability to adopt green values ​​in their business and management practices. While this has become a hot topic on the agenda of policymakers and researchers, there is a critically low level of green awareness among entrepreneurs. This highlights the need to explore how to better foster the development of a green business mindset among entrepreneurs. Collaboration with multiple stakeholders is currently promoted as an essential resource for companies to create a positive environmental impact and circular value. However, entrepreneurs do not recognise the advantages of collaboration, but instead face growing stakeholder green pressure. Collaboration competence has been recognised as one of the essential elements of the green business mindset. The awareness of green values ​​and the importance of collaboration in this context needs to be developed at school to provide theoretical knowledge and promote green skills. This study aimed to investigate the understanding of teachers and academic staff about the green business mindset and to assess their perception of the importance of collaboration competencies within the green business mindset. Research questions: 1) What are the main competencies comprising the green business mindset model and the status quo of the collaboration within this model; 2) How do teachers and academic staff perceive the importance of collaboration in developing the green business mindset? MATERIALS AND METHODS The systematic literature analysis, content analysis and clustering of the co-occurrence of keywords and concepts were used for the research. The empirical study reflects the situation in Latvia, and accordingly, the academic staff as well as teachers from Latvia were surveyed. Interviews of experts were conducted. The descriptive analyses synthesised the research results and described the main implications and further research gaps. RESULTS The green business model encounters the development of critical thinking, creativity, initiative and leadership, reflection, sharing and collaboration, environmental concerns and the attitude towards green values. The research results reveal the increased necessity to promote green awareness among youth, entrepreneurs, families and teachers. The academic staff rather have an overall understanding of green business, but they lack detailed green knowledge. Changing the behaviour and attitudes towards environmentally friendly business is considered most important, but collaboration is less critical. DISCUSSION Latvian entrepreneurs do not recognise the benefits and positive impact of green business practices. Changing customer values and global trends of sustainable transition will foster green business practices. Therefore, it is essential to develop knowledge of the circular and green business and stimulate behavioural changes of entrepreneurs to accept and follow environmentally friendly values. Previous studies prove the vital and integral role of collaboration with and for multiple stakeholders in creating positive environmental impacts. Such stakeholder collaboration includes various managerial tasks - the establishment of the relationship, value mapping and standard value orientation, regular communication, involvement and engagement, sharing and co-creation, and requiring appropriate competencies. Collaboration with multiple stakeholders is a cross-cutting issue that should be reflected horizontally in different study courses, not just in a specific environmental or ecological curriculum. However, the entrepreneurship and management study programmes should include stakeholder collaboration topics as one of the managerial practices. CONCLUSION This study describes the green business mindset model and its multi-dimensional nature, including knowledge and skills related to entrepreneurship, sustainability, ecology, and green education on the one hand, and emotional intelligence, green values and attitudes on the other. This research reveals the shorthand situation of Latvia. The green business mindset model envisages several levels of development and assessment – raising awareness, acquiring knowledge, changing attitudes and values, changing behaviour, and initiating green actions. The academic staff and teachers consider that, in Latvia, besides green business knowledge, the emotional, intuitive and spiritual intelligence, self-awareness and self-confidence encompassing green values ​​are essential, and should be developed.publishersversionPeer reviewe

DEVELOPMENT OF FAMILY-FRIENDLY WORKPLACES IN LATVIA:EXPLORATION OF OBSTRUCTIVE AND FACILITATIVE FACTORS

Development of family-friendly workplaces is an important aspect within thecontext of social inclusion and sustainability of society. Its importance is alsorecognized at European Union level in relation to European Union strategic aims.In order to promote development of family-friendlyworking environment it isimportant to identify and evaluate obstructive andfacilitative factors.The aim ofthe paper is the clarification of what hinders andwhat facilitates formation offamily-friendly workplaces in Latvia. The researchis based on 20 semi-structuredin-depth interviews with experts and 36 semi-structured interviews withemployers of different business organizations in Latvia.The research results reveal that development of family-friendly workingenvironment is a multidimensional process and the several participants (socialagents) must get involved. During the research process acquired data discoverproblematic issues related to allocation of responsibility between state, localmunicipalities and private sector in the context ofempowerment of the requiredinfrastructure for work-family reconciliation. Theresearch shows that at presentthere is a lack of information, knowledge and studies of the real benefits gainedby all the parties involved, when organizations implement different initiatives,provisions, programs or strategies with the goal ofpromoting workers’ work andfamily reconciliation possibilities

Work-Family Reconciliation in the Organizations of Private Sector

ANOTĀCIJA Promocijas darbā analizēta darba un ģimenes saskaņošana Latvijā saistībā ar ģimenei draudzīgu darbavietu veidošanu, izvērtējot privātā sektora organizāciju pieredzi, praktiskās rīcības stratēģijas un iespējas ģimenei draudzīgas darba vides veidošanā. Teorētiskais ietvars balstīts teorijās, kas atklāj darba un ģimenes attiecību kompleksitāti, un teorijās, kas palīdz interpretēt organizāciju kā darbavietu lomu darba un ģimenes saskaņošanā un skaidro ģimenei draudzīgu darbavietu veidošanu. Izmantojot multidimensionālu pētījuma dizainu: (1) sniegts darba un ģimenes saskaņošanas iespēju un pamatproblēmu raksturojums; (2) interpretētas organizāciju prakses un pieredze darba un ģimenes saskaņošanā; (3) risināta diskusija par ģimenei draudzīgu iniciatīvu ieviešanas un izmantošanas kontekstualitāti, saturu un norisi; (4) kā arī sniegta ģimenei draudzīgu darbavietu veidošanu kavējošo un motivējošo faktoru analīze. Atslēgvārdi: darba un ģimenes saskaņošana, ģimenei draudzīga darbavieta, organizācija kā darbavieta.ANNOTATION The promotional work presents an analysis of work-family reconciliation in Latvia in relation to forming of family-friendly workplaces while assessing the experience, practices and possibilities of the organizations of private sector in the creation of family-friendly work environment. Theoretical framework is based on the theories that reveal complexity of work-family interface and the theories that help to interpret the role of organizations as workplaces in the work-family reconciliation. The author applies multi-dimensional research design in order to: (1) present the description of possibilities and difficulties to reconcile work and family life; (2) interpret the practices and experience of the organizations; (3) discuss the context, content and process of implementation of family-friendly initiatives; (4) give an analysis of obstructive and facilitative factors of formation of family-friendly workplaces. Key-words: work-family reconciliation, family-friendly workplace, organization as a workplace

Current Status of the Equine Sector in the Central Baltic Region (Finland, Latvia and Sweden)

This report covers basic descriptions and characteristics of the equine sector, including statistics on number of horses, horse farms, employment, current structure and recent dynamics in the horse sector in Finland, Latvia and Sweden and also the mobility (e.g. trade, import, export and tourism) within the Central Baltic Region. The information was gathered through literature reviews, round table discussions and interviews with equine organisations and stakeholders, and through visits to farms with equine business activities in each of the three countries. Horses in Finland, Latvia and Sweden At the moment the horse population in Finland is growing steadily. In 2010 there were about 75 000 horses. Most of these are warm-blooded trotting horses, but riding horses are becoming increasingly popular as riding as a hobby increases in popularity. Approximately 35 000 people own at least one horse and co-ownership is becoming a common way of owning a horse with relatively small costs and responsibilities, especially among trotting sports. There are approximately 16 000 stables, of which over 3 000 are business orientated. These numbers are still only estimates, because Finland is lacking a comprehensive register of stables and stable enterprises. Although statistical data on the number of horses, breeds, herds, stables etc. are being collected and are available in Latvia, there is still a lack of statistical data that characterise the sector in relation to employment, provide an idea of the financial results, and characterise horse uses for tourism or therapy purposes. For example, there are no data on the number of people working with horses. This is perhaps related to the perception of the sector as being located within the context of horse breeding. Statistical data show that the number of horses in Latvia in general has decreased, from 15 250 in 2005 to 11 476 in 2012, and the current trends indicate that it could decrease even more. The number of livestock has decreased correspondingly, from 9814 in 2005 to 5577 in 2012. More than 84% of all farms have 1 to 5 horses, and only a few farms have more than 100 horses. The number of horses in Sweden decreased in the early 1920s from about 700 000 to about 70 000 in the 1970s. During the past 30 years the number of horses has increased tremendously, but the trend seems to be stagnated the last few years. Today there are approximately 362 700 horses and about 20% of all horses in Sweden are within business establishments. The number of horses per 1 000 habitants is 39 for the whole country and Sweden is now estimated to have the second highest density of horses per capita in Europe. There are approximately 77 800 establishments involving horses in Sweden. The equine businesses have on average 4.7 horses and provide full-time or part-time work for a total of 25 000 people. About two-thirds of those working with horses are women. Horse related legislation in Finland, Latvia and Sweden Environmental legislation is one of the broadest judicial systems in Finland. It consists of a number of different laws and regulations, relating to waste disposal, water protection, environmental protection, land use and construction. After EU membership, environmental legislation in Finland was harmonised with EC (European Community) legislation, especially in the case of environmental protection and conservation. The main environmental legislation concerning the horse sector in Finland consists of following laws, directives and regulations: 1) Environmental protection law and regulation, 2) Waste law and regulation, 3) EU waste incineration directive, 4) By-product regulation, 5) Nitrate regulation, 6) Law concerning dead animals in remote areas, 7) The law on processing household water in remote areas, 8) Health protection law and regulation, 9) Fertilizer law, 10) Conservation law, 11) Land use and construction law and 12) Law about neighbourliness. According to the requirements of the Ministry of Agriculture, the policy of the horse breeding sector in Latvia is based on: a) Horse breeding is performed according to the targets stated in the breeding programme, which are based on production of high quality animals, preservation and improvement of the genotype through purposeful use of the breeding stock and improvement of horse monitoring, b) The importance of the development of horses and equestrian sports within the framework of the common agricultural policy is emphasised in order to encourage development of the rural environment, and c) Horse breeding is compliant with welfare regulations. National and European Union aid for the development of the agricultural sector is allocated to horse breeding too. Most of it consists of aid for breeding measures in the equine sector. Currently there are no specific regulations in Latvia which define requirements for keeping horses. Horse breeding is not distinguished separately within the field of animal welfare in Latvia and therefore the main document is the Animal Protection Law. Its norms are general, while Cabinet Regulation No 959 ´Welfare Requirements for the Keeping and Training of Sport, Work and Exhibition Animals and Use Thereof in Competitions, Work or Exhibitions´ does not specify actions with horses and can easily be interpreted in different ways. There is no measurable evaluation system to assess fulfilment of the requirements in the Cabinet Regulations. The law stipulates the actions and activities which may be undertaken with an animal and those which are strictly forbidden and lists the institutions that should supervise compliance with the law and the welfare requirements. Latvia lacks the basis of normative documents that would specifically regulate personal safety in the horse breeding sector and in businesses related to horse use. Therefore the common normative basis has to be considered, the foundation of which is the ´Labour Protection Law´. The foundation of Swedish environmental legislation is the Swedish Environmental Code. The purpose of the Swedish Environmental Code is to promote sustainable development which will assure a healthy and sound environment for present and future generations. The Code is a legislative framework based on a number of fundamental principles permeating international environmental protection and resource management. These include the "precautionary" principle, the "polluter pays" principle, the "product choice" principle and principles governing resource management, natural cycles and appropriate siting of industrial (and other) operations and remedial measures. The main environmental legislation in Sweden concerning the horse sector consists of the following laws, directives, ordinances and regulations: 1) Environmental Code, 2) Ordinance concerning environmentally hazardous activities and the protection of public health, 3) Ordinance on environmental consideration in agriculture, 4) Nitrate directive, 5) Water directive, 6) Swedish guidance on storage and spreading of manure, 7) Regulation on environmental consideration in agriculture as regards plant nutrients, 8) Ordinance on inspection and enforcement according to the Environmental Code, 9) Ordinance on self-inspection by operators, 10) Ordinance on animal by-products, 11) Ordinance on fees for examination and supervision under the Environmental Code and the fees ordinance, 12) Regulations on the protection of the environment, in particular the soil, when sewage sludge is used in agriculture, 13) Regulations on consideration for natural and cultural values in agriculture, 14) Ordinance on environmental penalty charge, 15) The Planning and Building Ordinance, 16) The Land Code. In Sweden the occupational safety and health issues in general are regulated in the Work Environmental Act (SFS 1977:1160), in the Work Environmental Ordinance (SFS 1977:1166) and in several provisions. There is no specific legislation regarding occupational health and safety in the horse sector. However, these issues are included in the provision Working with animals (SFS 2008:17). Some results of the round table discussions in Finland, Latvia and Sweden In general, the participants in round table discussions in Finland were hoping for concrete solutions and examples of low-cost and easy help for everyday businesses. Entrepreneurs with lower profitability need more support, but the challenge is to get them involved in education or advisory events. The riding sector at least is much divided, with some businesses having as many customers as they can serve, and others who are constantly on the edge of bankruptcy. To help those small and medium-sized enterprises that need help the most, the project should produce advice that can immediately be used in practice, and concrete results and solutions. The problem with small and medium-sized businesses is the lack of capital and the related impossibility of investing large amounts of money in new technologies or large-scale facilities. In this sector the profitability and competitiveness are often low, but small changes in operations could improve these. Many business owners are still lacking business skills and they may not see what they could use as a competitive advantage. The current understanding of the equine sector in Latvia has to be reconsidered or a better understanding has to be created. Therefore the policy guidelines and the aid to the sector will have to be reviewed. For example, according to the view of the Ministry of Agriculture of the Republic of Latvia, the equine sector only concerns breeding and accordingly state aid is predominantly provided for this purpose. The Latvian Horse Breeding Association also considers breeding to be its priority, but several representatives of the tourism industry expressed the opinion that horse breeding should be reconsidered, paying special attention to the Latvian horse breed, which could be interesting for foreign and local tourists as a special feature of Latvia. Latvian breed horses possess a nature and traits that make them suitable for tourism and also therapeutic riding purposes. The equine sector in Latvia in general lacks a clear direction for orientation, what should be bred, what might be a profitable product or an exportable product. Since this is not clear on a national scale, it is difficult to discuss aid instruments. The people working in the sector often lack skills in project preparation, they do not have time to learn and study it all, and therefore it is difficult to apply for and to receive the aid. In order to solve this, it is usual practice to involve companies that prepare the project application. Other entrepreneurs try to master these skills themselves. The horse sector in Sweden is now on a downward trend, pointing out the decreased number of served mares. The horse businesses need to streamline their business ideas, look for better locations (closer to customers) and the activities offered must be more adapted to customer needs and demands, such as different types of activities and livery stables with more specialist services or diversified food production. In general, horse stables will have a lot of opportunities in the sector if they can keep up with the changes in the sector. The interest in Sweden regarding keeping horses and attending riding sports was perceived to be decreasing and it was thought that there is a system change underway. The way to keep horses in the future may not be the same as it used to be. People are not willing to sacrifice time and efforts to keep on with horses any more, people are getting older and there is limited recruitment of young people into the sector. The horse activities mainly take place in urban and periurban areas