Circular Business Models Rooted in Grassroots Innovation: Insights From India’s Frugal and Regenerative Enterprises

Abstract

The concept of circular economy has elicited attention since the past decade. The rise of the pandemic has just added to it. Academicians, policymakers, and industrialists have been coming up with strategies to implement circular business practices in their activities. However, reorientation to a circular economy would require the adoption of circular business models (CBMs) that sustain the value of resources and mitigate waste generation, along with fostering social well-being in the society. Pertaining to this, grassroots innovation in the Global South offers a unique prospect for circular economy transition by incorporating circular business practices such as conceptualizing solutions for the marginalized populations prevailing in resource-constrained environments driven by local resources and indigenous knowledge. Grassroots innovations, prevailing outside the realm of formal innovation ecosystems, tend to incorporate circularity practices in their approach. The aim of this chapter is to explore how grassroots enterprises adopt CBM practices in their innovation approach. The study adopted a qualitative case study approach by considering four grassroots enterprise cases from India. The findings illustrate how the grassroots cases underpin the limited resources and create affordable and accessible solutions that lead to socio-ecological development at the community level. Further, the shared patterns and distinct variations illuminate how each case differs in its aspect to the adoption of a CBM. This chapter adds to the discourse on circular economy and grassroots innovation domains along with recommendations for policymakers to influence policy reform for promoting grassroots innovations by adopting such practices.