BRIDGING INNOVATION AND ENTERPRISE: A FRAMEWORK FOR SUSTAINABLE BUSINESS PERFORMANCE

Innovation remains a fundamental pillar of enterprise performance, efficiency, and sustainability, especially within entrepreneurial ecosystems. This study explores the interrelationship between innovation, performance, and entrepreneurship, with a particular focus on frugal innovation and its application in emerging markets. Innovation in entrepreneurship is not merely about new ideas but is deeply tied to tangible outcomes such as improved performance, financial returns, and organizational resilience. Previous studies (Ovharhe, 2022a,b; 2023a,b; 2024a,b) emphasize the role of creativity and innovation as essential anchors for business sustainability, while other scholars assert that performance involves the effective mobilization of human, financial, and material resources toward goal achievement.Within this framework, social and serial entrepreneurs—especially in resource-constrained environments—face the dual challenge of addressing societal issues while contending with limited institutional and community support. Despite these constraints, social entrepreneurship continues to serve as a powerful tool for tackling global challenges. A significant aspect of this innovative approach is the integration of frugal innovation, a people-centered, low-cost, and sustainable model of product and service development. Frugal innovation emphasizes simplicity, durability, affordability, and adaptability in addressing unmet needs, particularly in underserved and economically constrained environments.The paper argues that frugal innovation is not only a cost-effective strategy but also a compassionate and emotionally driven approach that aligns entrepreneurial initiatives with the real-life challenges of the communities they aim to serve. Entrepreneurs who embrace frugal innovation are more likely to engage meaningfully with their stakeholders, leading to more sustainable outcomes.Furthermore, the paper highlights the relevance of frugal innovation in management sciences—particularly in fields like accounting, marketing, actuarial science, and corporate management—where socially driven entrepreneurship can enhance performance outcomes and contribute to national development. The study concludes that aligning innovation with compassion, problem-solving, and community engagement is essential for fostering sustainable entrepreneurship in emerging economies