Stable material supply

A circular economy ensures that the company uses fewer new raw materials and more recycled raw materials, and that the value of these raw materials is maximised over their entire life cycle. As a result, an entrepreneur will incur relatively lower material costs than labour costs, which means that the costs and availability of materials have less influence on the stability of the business model. With more stability, a company can make more favourable and targeted long-term investments (Vermunt et al., 2019). A good example is the company Vanderlande, which installs baggage and parcel transport systems worldwide. Vanderlande developed a conveyor belt that can be disassembled and reassembled quickly. In this way, the company spends less on material costs (Vanderlande, 2019).