Sustainable business models can help improve the resilience of small enterprises to the challenges of limited resources, institutional constraints and climate change. However, there has been little research into how community-based entrepreneurship development organizations in the Pacific Islands can design business models that simultaneously counter environmental challenges and exploit market opportunities. This study compares the exogenous and endogenous influences on business model formation in two organizations that encourage the development of sustainable micro-enterprises among at-risk communities in Samoa and Tonga. The results suggest that a business model that is market-led rather than product-led is likely to be more financially viable.
