Frugal Entrepreneurship: Profiting With Inclusive Growth

Frugal entrepreneurship (FE) is increasingly considered an important change-maker in emerging markets, serving the unmet market needs of poor. However, we lack understanding who protagonists FE are, their constraints, drivers, and outcomes. Using inductive research approach with multiple cases, build a framework that explains outcomes FE. We identify three types constraints—resource, institutional, scale-up constraints. FEs’ creation process involves innovative institutional support as drivers. Unlike conventional firms, study points out duality FEs—business growth inclusive growth. Despite many FEs demonstrate proven success providing affordable products for low-income customers show way profiting Our article makes several contributions along both theoretical practical implications.