Community-Based Enterprise Creation in Base of the Pyramid Environments: A Sharing Economy Perspective

Abstract

Community-based enterprises (CBEs) offer a pathway for communities at the base of the pyramid (BoP) to combat poverty and drive development by addressing local social issues. However, the creation of CBEs in resource-scarce settings remains underexplored. With the support of an action research intervention aimed at the sustainability of medicinal plants through empowering indigenous communities, we examined the processes and mechanisms that enable the creation of CBEs in resource-constrained settings. Using a qualitative case study method, we identified seven mechanisms—informalizing spaces, survival instincts, solidarity, upskilling, resourcefulness, reciprocity, and collective leadership—that enabled the successful creation of CBEs. Our study contributes to the literature by demonstrating the potential of CBEs as sharing economy organizations to address resource constraints and promote inclusivity among marginalized populations in BoP environments. The results emphasize the necessity for policymakers and CBEs to design platform structures grounded in sharing economy principles to integrate scattered production resources and enhance economic resilience.