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Entrepreneurship at the base of the pyramid: effectual logics and sustainable development

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  • Gisely Catarina De Souza Rodrigues
  • Luisa Veras De Sandes-Guimarães
  • Raquel Da Silva Pereira
  • Patrik Darlan Ribeiro

Abstract

This study investigates the micro-foundations of entrepreneurship at the Base of the Pyramid (BoP) and its role in sustainable development. Despite the growing recognition of BoP entrepreneurs, the understanding of their individual-level decision-making remains limited. Adopting a qualitative, exploratory approach, this research analyses semi-structured interviews with 16 entrepreneurs in the food and beauty sectors of Santo André, Brazil. The findings, interpreted through Effectuation Theory, reveal that entrepreneurial motivations blend economic necessity with a strong desire for autonomy. Participants employ sophisticated effectual strategies, relying heavily on social capital and the principles of affordable loss to navigate severe resource constraints. The study contributes to theory by demonstrating how the extreme context of the BoP amplifies effectual logic, modifying how these principles are applied. Ultimately, it reframes BoP entrepreneurship not merely as a survival strategy, but as a dual mechanism for economic resilience and human emancipation. The results suggest that policymakers must move beyond financial inclusion to support the emancipatory potential of these ventures through targeted ecosystem building.

Suggested Citation

  • Gisely Catarina De Souza Rodrigues & Luisa Veras De Sandes-Guimarães & Raquel Da Silva Pereira & Patrik Darlan Ribeiro, 2026. "Entrepreneurship at the base of the pyramid: effectual logics and sustainable development," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 22(1), pages 1-21.
    • Handle: RePEc:ids:wremsd:v:22:y:2026:i:1:p:1-21
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