Integrating Sustainable Business Models and Blended Finance in the Blue Economy: A Conceptual Framework for Papua New Guinea Fisheries Sector

This research examines how Sustainable Business Models (SBMs) can be developed and assessed in the context of Papua New Guinea’s (PNG) Blue Economy, with a particular focus on the fisheries sector. While both SBMs and blended finance (BF) have been studied separately, their integration at the national level to build a Blue Economy in developing economies context remains underexplored. This study aims to propose a conceptual framework that combines SBMs and BF at the macro level, positioning the government of Small Island Developing States (SIDS) as a key partner in aligning financial innovation with ecological sustainability and social equity. The research draws on Ecological Economics, the Triple Bottom Line, and Developmental State Theory to establish a robust theoretical foundation. Using a qualitative case study design and secondary data sources, it aims to critically evaluate existing models and mechanisms on how BF can enable scalable, inclusive, and sustainable BMs in PNG’s fisheries. This paper contributes a macro-level, systems-oriented conceptual framework that reconceptualises blended finance as a structural enabler of sustainable business models in the Blue Economy, advancing theory beyond firm-level and descriptive approaches. Keywords— Blue Economy, Sustainable Business Models, Blended Finance, Papua New Guinea, Fisheries, Governance