To develop a sustainable, low carbon, resource-efficient and competitive economy, transition to a circular economy is essential. The circular economy through eco-design, waste prevention and increased re-use and recycling of products, provides that the value of products, materials and resources is maintained in the economy for as long as possible, and tackles the current environmental problems. Circular economy is an industrial system that is restorative or regenerative by intention and design and calls for considerable change in the mindset of businesses and hence radical changes in business education. Circular economy and eco-design are a focus of EU policy, like the adopted Circular Economy Package that seems to be a crucial turning point for further implementation of the eco-design concept into various sectors of the economy and will contribute to “closing the loop” of product lifecycles. The aim of the current paper is to study what competencies students should acquire in business and economics education and to formulate guidelines for human resource development through higher education according to requirements of a circular economy. The authors use literature studies, semi-structured interviews and an analysis of the syllabuses of bachelor and master degree business and economics study programmes in three Latvian higher education establishments as the main methods for the study. The authors concluded that study programmes in higher business and economics education should review the key competences regarding circular economy issues. Proposed measures in the development of a circular economy require systems thinking, development of an approach to product lifecycle, transdisciplinary knowledge, long-term thinking, more flexible approaches to interdisciplinary studies, as well as creativity, consciousness and a proactive attitude. According to the framework of a circular economy, human resource development should be considered as a principal precondition for a sustainable and competitive economy.