Social Entrepreneurship at the Base of the Pyramid: A Local Governance Model for Sustainable Empowerment

Purpose: This research aims to elucidate the operational mechanisms of socio-economic empowerment for local communities residing at the Base of the Pyramid (BOP) through social entrepreneurship anchored in robust local governance. The BOP, representing a vast segment of the global low-income population, has consistently been recognized as both a significant challenge and a substantial opportunity within development discourse. Despite the inherent potentials within these communities, barriers such as inadequate infrastructure, limited access to resources and capital, and weak governance structures frequently impede their flourishing. In this context, social entrepreneurship has emerged as an increasingly vital, innovative, and sustainable approach to addressing pressing social and economic issues within these vulnerable populations. Understanding the dynamics of effective interventions in BOP contexts is crucial for achieving inclusive and sustainable development goals.



Methodology: The present study adopts a qualitative research approach, employing an in-depth single-case study design. It meticulously examines the systematic and interconnected actions undertaken by a local governor in a rural area of Iran. This governor successfully leveraged principles of institutional entrepreneurship and revitalized social capital to instigate profound and sustainable institutional, economic, and cultural transformations within the target community. Data were collected through semi-structured interviews with key stakeholders, including community members, local leaders, and officials, alongside a comprehensive analysis of relevant local documents, such as development plans, project reports, and community records. This multi-faceted data collection strategy ensured a rich and nuanced understanding of the phenomenon. The collected data were subsequently analyzed using thematic analysis and theoretical coding, allowing for the identification of recurring patterns, emergent themes, and underlying theoretical constructs that explain the observed empowerment processes. This rigorous analytical approach facilitated the development of a grounded understanding of the local governance model.



Findings: The research findings emphatically demonstrate that the activation and strategic utilization of often-overlooked local resources, coupled with the pivotal role of dynamic and empowering local governance, and the deliberate fostering of social innovations and institutional entrepreneurship, are indispensable factors for achieving sustainable empowerment in BOP communities. The results clearly illustrate that the governor's targeted and integrated interventions led to significant positive transformations, including improved livelihoods, enhanced social and cultural capacities, and the establishment of resilient economic structures capable of withstanding fluctuations. These actions, extending beyond episodic interventions, actively contributed to the creation of a self-sustaining local entrepreneurial ecosystem with inherent capacity for continuity and replication. The study highlights how a proactive local authority can serve as a catalyst for community-led development by fostering an environment conducive to social innovation and entrepreneurial endeavors. This research posits the local governance model as an effective framework for facilitating social entrepreneurship and fostering sustainable empowerment within BOP communities.



Implications and Originality: This research contributes significantly to the existing literature on social entrepreneurship and local development by presenting an empirically grounded operational model of local governance. This model uniquely emphasizes the entrepreneurial role of local government officials in activating and harnessing the intrinsic capacities of local communities. The study's focus on institutional entrepreneurship and the revitalization of social capital as primary drivers of change is a notable strength, offering fresh perspectives on how systemic transformations can be initiated and sustained from the grassroots level. This model serves as a practical guide for policymakers, development practitioners, and local administrators in similar contexts, enabling them to design and implement sustainable and inclusive empowerment programs that resonate with local realities. Furthermore, this research enriches our understanding of how the inherent challenges within BOP communities can be transmuted into opportunities for profound growth and development through innovative governance approaches and strategic social entrepreneurship initiatives. The findings underscore the critical importance of a collaborative approach between local authorities and community members to unlock the full potential of marginalized populations.