Innovating Sustainable Entrepreneurship through Circular Economy: A Collaborative Model for Coffee SMEs in Labuan Bajo

Abstract

The development of sustainable entrepreneurship has become an important strategy to enhance the competitiveness of Small and Medium Enterprises (SMEs), particularly in the coffee sector, which holds significant potential in the tourism area of Labuan Bajo. This community service program focuses on entrepreneurship innovation based on the circular economy through a collaborative model involving the partner SME, Databajo Coffee. The approach aims to optimize the efficient use of resources, reduce coffee production waste, and create added value from coffee by-products such as coffee grounds and coffee husks (cascara).

The implementation methods include: (1) dissemination of circular economy concepts and sustainable entrepreneurship; (2) training on product innovation from coffee waste; (3) business management and digital marketing assistance; and (4) the development of collaborative networks with local communities, universities, local governments, and tourism stakeholders. The results show an increase in the entrepreneurial capacity of the partner in adopting environmentally friendly practices, diversifying products, and expanding market access through sustainable tourism promotion in Labuan Bajo.

Through this program, Databajo Coffee not only improved its business performance but also contributed to the development of the local circular economy. Thus, this collaborative model can serve as a best practice that may be replicated by SMEs in the coffee sector as well as in other sectors within sustainable tourism destinations.