Decision making under constraints: designing sustainable business models in emerging markets

This study investigates the complex decision-making processes involved in designing sustainable business models (SBMs) within emerging markets. These environments are characterized by institutional gaps, infrastructural challenges, financial constraints, socio-cultural diversity, and environmental issues—all of which significantly impact strategic and operational choices. Through an integrative review of existing literature, the research synthesizes insights from empirical studies and practice-based sources to explore how entrepreneurs develop adaptive, inclusive, and resource-efficient business models that balance economic viability with social and environmental responsibility. The findings indicate that limited access to traditional financing sources remains a major obstacle, prompting many entrepreneurs to pursue alternative funding options such as microfinance, impact investments, and blended finance. Infrastructural shortcomings encourage frugal innovation and locally adapted operational strategies, while institutional weaknesses often lead businesses to rely on informal systems and social networks. Cultural factors and community engagement are vital for gaining market acceptance, and environmental pressures foster the adoption of circular economy principles and regenerative practices. Nonetheless, scaling these models continues to pose challenges due to market fragmentation and resource inequalities.