The economic circularity of informality? Evidence from patterns of informal business innovation in Bandung

Abstract

Urban (physical) and business informality and economic circularity may come together in cities of the global South. In this paper we explore the intersection of business and urban informality and circular economy outcomes in community-based clusters of informal businesses. These intersections are revealed in the relationship of businesses to the home, the localization of linkages (including the use of recycled materials) and the relationship of businesses to the local communities in which they are embedded. We draw on data from 203 questionnaire survey returns from five kampung-based footwear and clothing industry clusters in the Indonesian city of Bandung. The research confirms the ambiguity of the relationship between individual business dynamics and the communities in which they are embedded. Our findings suggest some points of policy leverage centred on business and community institutions, and lead on to avenues for research that might elaborate the ambiguous relationship between business and social innovation with respect to sustainable urban development.