Economy has long operated through a linear business model, and in response to the economic crisis and the generally accepted consumerist behavior, new business models are being developed, the usage of which affects not only the environment and its sustainability, but also the economic and social aspects of economy. The first step in achieving sustainable development and circular economy is ultimately to encourage the development of social innovations and to encourage people to change, because they are, being the greatest drivers of change, also its biggest obstacle. This paper deals with the theoretical background describing business models and the importance of each model as well as with the way they affect the economy. The adaptation of the circular model as a logical and multidirectionally useful strategy in relation to the linear business model is emphasized and explained. This paper also encompasses the legislative framework adopted by the Republic of Croatia upon its accession to the European Union. A package of Directives containing ways to implement the principles of circular economy into the economy of the European Union is presented and described in a descriptive manner. The paper deals with and analyzes the implementation of activities of the circular economy based on companies from the European Union, neighboring Member States (Italy, Hungary and Slovenia) and the Republic of Croatia which have been undertaken by them in the last three years. The analysis of the research will show the companies’ average investments in the activities stimulating the transition to the circular economy. According to the above results, funding available to micro, small and medium-sized enterprises will be examined together with the way in which they finance their activities. The level of awareness in the segment of the allocation of government subsidies and the availability of alternative resources for enterprises in the field of stimulating activities for the development of circular economy were comparatively researched.