ABSTRACT
In order to contribute theoretical reflections to the broad inquiry about entrepreneurial development at the Base of the Pyramid—specifically, socio-economic contexts where communities’ livelihoods depend on the use of the rural commons—this chapter seeks to answer two questions. How can commons-based enterprises be characterised? What particular challenges do actors that engage in the development of these enterprises face? Drawing from a selective literature review and insights from data collected in the field, the chapter defines a commons-based enterprise as a special form of community enterprise whose primary goal is to commercialise products and services directly derived from the use of common-pool resources. From the analysis of the interaction between the extent of resource rights tenure and the predominant drivers for value generation—two key analytical dimensions for this type of enterprise—four key challenges are identified: expansion to wider markets, investment in organisational capacity, institutional innovation, and recombination of capital assets. The chapter also reflects on the political role played by commons enterprises and postulates the creation of focalised support systems, the piloting of interventions, and the promotion of peer learning as key action principles for helping develop commons-based enterprises.
