Crafting Sustainable Development Solutions: Frugal Innovations of Grassroots Entrepreneurs

Abstract

Abstract:A shift in the entrepreneurial landscape is taking place brought about by grassroots innovators with little formal education and technological knowhow, living and working in penurious environments. This research represents an emerging third wave of literature on Bottom of the Pyramid innovation, where products are offered for and by the underserved. Using primary and secondary data derived from four cases of grassroots entrepreneurs in the Indian Subcontinent, the study explores the phenomenon where resource scarce entrepreneurs craft solutions that are environmental friendly, with low overall ownership costs, and use locally available material. We argue that the grassroots phenomenon can be fruitfully exploited to achieve the new Sustainable Development Goals proposed by the UN as a post-2015 strategy for the future of global governance. These innovations might have a tremendous impact not only in terms of serving unmet and ignored consumer needs, but also longer term impacts through enhanced productivity, sustainability, poverty reduction and inclusion promotion.

How Frugal Innovation Promotes Social Sustainability

“…These four billion micro consumers constitute a significant market and represent an engine of innovation, vitality, and growth [42]. By seeing poor as producers [49], co-producers of innovation [50,51], entrepreneurs or innovators [52,53] and not mere receivers, the firms can be successful in the BOP markets. Employing strategies like building local capacity and co-inventing custom solutions with non-traditional partners, these companies and their sustainable innovations can enter the BOP markets with ease [51,54].…”

Untitled

“…Hareem Arshad, Marija Radi , and Dubravko Radi ducted case studies that discuss the relationship between frugal innovation and sustainability (Kahle et al, 2013;Pansera & Sarkar, 2016;Rosca et al, 2016; or the importance of frugal innovation for the competitiveness of multinational corporations (Agarwal & Brem, 2012;Anderson & Markides, 2007;. Only a limited number of studies have focused on the potential of frugal innovation to improve global health and primarily conduct case studies on singular frugal innovations (e.g., Ramdorai & Herstatt, 2015).…”

Frugal innovation beyond emerging countries: the key role of developed countries

“…In the first analysis, the assumptions made by Cavusgil (2012) and Meyer et al In the context of Frugal Innovation, according to the literature consulted (Agarwal & Brem, 2012;Brem & Ivens, 2013;Leliveld & Knorringa, 2017;Pansera & Sarkar, 2016;Tiwari & Herstatt, 2014), adversity and extreme need led to the emergence of frugal innovation. What we want to consider in this current study is that institutional constraints and voids, notably influential in the quality of life and the development of market conditions in emerging countries can appear as adversities.…”