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Frugal Innovation at the Intersection of Formal and Informal Sectors: Insights from Moroccan Entrepreneurial Practices

Author

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  • Issam Ourrai

    (Laboratoire GRANEM - Université d’Angers)

  • Mohamed Rahmou

Abstract

Frugal innovation has become a vital approach to fostering sustainable entrepreneurship and societal transformation in resource-constrained environments. This paper investigates how Moroccan entrepreneurs navigate the intersection of formal and informal sectors to drive business growth, social impact, and digital transformation. Through three qualitative case studies—MadNess (a social innovation incubator), NexTronix (a tech firm that adapted to crises like COVID-19 and the Al Haouz earthquake), and Aboulfeth Hamza (a digital entrepreneur)—we explore how frugal innovation strategies emerge from grassroots realities. Guided by sensemaking theory (Weick 1995) and frugal innovation principles (Radjou & Prabhu 2012), we combine ethnographic methods with NLP and machine learning techniques to analyze entrepreneurial resilience. Findings reveal the strategic use of informal networks, digital tools, and lean models to overcome institutional and financial constraints. The study contributes to the discourse on frugal innovation by showing how hybrid ecosystems fuel inclusive entrepreneurship in the Global South.

Suggested Citation

  • Issam Ourrai & Mohamed Rahmou, 2026. "Frugal Innovation at the Intersection of Formal and Informal Sectors: Insights from Moroccan Entrepreneurial Practices," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-23124-6_54
    DOI: 10.1007/978-3-032-23124-6_54
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