Exploring Challenges and Opportunities for Bio-based Business Models to Strengthen Ecuador's Rural Economy

Luzon Tandazo, Erika Yessenia and Ritter, Krisztián (2025) Exploring Challenges and Opportunities for Bio-based Business Models to Strengthen Ecuador's Rural Economy. STUDIA MUNDI - ECONOMICA, 12 (2). pp. 35-57. ISSN 2415-9395

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Abstract

The imperative transition from a linear to a circular business model is a critical factor in achieving sustainable development. Bioeconomy offers sustainable long-term economic growth by efficiently utilizing natural resources and integrating bio-based business model innovations alongside circularity principles. As the part of a long-term research searching for bio-based solutions for helping Ecuador’s rural economy, this paper aims to investigate bio-based business models in Ecuador to enhance the understanding of bioeconomy and help rural development within the country. The study employed two methodological approaches: a systematic literature review (SLR) of bio-based business models and graphical visualization. The findings encompass 22 relevant publications from 2020 to 2025. The study identified (1) the nexus between the circular economy and bioeconomy; (2) the framework of bioeconomy in Ecuador for implementing bio-based business models; (3) challenges and opportunities associated with bio-based business models in Ecuador; (4) network visualization of the bio-based models in Ecuador; and (5) top authors in the research field analyzed. This investigation underscores the connection between bioeconomy and bio-based business models for their implementation in rural Ecuador. The results indicate that despite Ecuador's abundant biodiversity, the country faces several challenges, including a lack of collaboration among stakeholders, insufficient public and private funding, limited research and innovation (R&I), inadequate technological resources, and undefined public policies for the implementation of the bioeconomy. The barriers are especially in rural areas, where infrastructural and technological gaps hinder the implementation of bio-based business models. Fostering sustainable models in Ecuador can drive national growth while revitalizing rural economies through employment generation, income diversification, and community resilience. Given that this study was conducted through an online review of diverse scientific articles and reports concerning Ecuador, it is recommended that future research incorporate comprehensive case studies involving interviews and field visits. Such an approach would enable a more nuanced understanding of the specific added value and potential of diverse bio-based enterprises, especially in rural areas. Additionally, a cross-national comparative analysis would be advantageous to explore the coexistence of different bio-based business models and their impact for rural economies. Finally, a life cycle assessment of activities within the bioeconomy framework is crucial, particularly in relation to the agri-food sector in Ecuador given its importance for rural livelihoods and national food security.

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