Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 511 Trakia Journal of Sciences, Vol. 17, Suppl. 1, pp 511-523, 2019 Copyright © 2019 Trakia University Available online at: http://www.uni-sz.bg ISSN 1313-7069 (print) ISSN 1313-3551 (online) doi:10.15547/tjs.2019.s.01.082 NEW INDUSTRIAL BUSINESS MODELS: FROM LINEAR TO CIRCULAR ECONOMY APPROACH N. Sterev* UNWE-Sofia, Bulgaria ABSTRACT In the growth of the Industry 4.0 transformation the economy has become to changed. Thus, not just the economy regulations are fostered but a new business approach has been arisen: the circular / regenerative economy approach. The EC already reacted as it introduced not just updated Sustainable development indices but a new set of indices: circular economy indices. According to this change of the economic model, the business organizations are fostered to change their business models, especially for the industry. Thus, not just the new regulations have to be introduced to the industrial business model but the total change of the added value of the business as introduction of green technologies or innovations for non-waste production value chains. Aim of the paper: to identify and to analyze the requirements to the business that foster them to change their linear business model to circular one. Methods: descriptive analysis of the Bulgarian economy according to circular economy indices; comparative analyses for identification of main differences between linear and circular economies; induction and deduction of the elements of business models. Results: analysis of the indices of circularity of the Bulgarian economy; analysis of requirements for transition from linear to circular economy; identifying requirements to the business model of a circular economy; systematizing rules / guidelines for transforming the business model of a linear economy into the business model of a circular economy. Conclusions: The indicators of the circular economy can be considered as a part of the harmonization process in the EU. Avoiding from the responsibilities of the circular economy approach by Bulgarian industry leads to moving away from the EU economies. This requires relevant national policies, measures and instruments to promote the transformation of the business model to circular one. The paper aims to present the need of industrial business model change as to analyze the starting position of the Bulgarian industry. Thus, the structure of the paper is following: 1. Introduction to Circular economy indices. 2. Definition of Circular economy approach. 3. Analysis of the Circular economy indices change for Bulgaria. 4. Introduction to business model change from linear to circular one. Conclusions. Key words: circular economy, business model, Bulgarian INTRODUCTION Circular economy is fast growing topic nowadays as there is found a desperate need of business and society transformation. According to the business economics’ development, the business model not just shifts from Industry 4.0 to Industry 5.0 but the shift is so fast as it has never been before. Just looking at the industrial changes (Figure 1) we could find how the shift from one technology era to another increases rapidly. _____________________________ *Correspondence to: Nikolay Sterev, UNWE- Sofia, Bulgaria, Sofia 1700, Studentski grad, 8-mi Decemvri, 0898481652, ind.business@unwe.bg There is a century period between any of first 3 stages of development, less than half century shift between Industry 3.0 and Industry 4.0, and may by a quarter of century for shift to Industry 5.0. So, the introduction of the social based technologies from the beginning of 2000s pushes up the change of the business model. Thus, the social impact of business activities as well as the group/mass type of thinking set that the individual prosperity is no longer accepted if the group has to survive.