Case Analysis: Cultivating Social Enterprise in Peru: A Portfolio Approach By Oana Branzei & Jan Dutkiewicz

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A consultant with CARE Enterprise Partners (CEP) is tasked to provide consulting for three social enterprises in different stages of development, each benefiting from CEP funding and support. CONASE – an oatmeal manufacturer selling to the government’s vaso de leche free breakfast program – asked for advice on strategic analysis and creative approaches to customer relations. Seviagro – a market linkage social enterprise aggregating produce from smallholder artichoke farmers for resale to a large processing and export company – requested support with cost analysis and accounting. Corporacion Solar – initially established as a buyer and reseller of spinach produced by Andean farmers but currently transitioning from a market linkage model to a hybrid model – was looking for assistance in reshaping its growth strategy to target major buyers in Lima with a more diversified product offering. The three for-profit social enterprises profiled in this case sample a new breed of locally-reliant, market-driven models, which could further Peru’s rural development in mountainous regions like the Ancash province. Their success could be tremendously influential in charting a new approach to development in the Andes. Success here could also endorse CEP’s pioneering approach to development around the world. But despite careful start-up planning and very promising triple-bottom line projections, each enterprise confronted unexpected challenges in customer relations, cost management, sourcing and distribution. As these social ventures were getting off the ground, their founders’ ability to simultaneously meet their social goals and remain economically viable was in jeopardy. The case asks students to put themselves in the consultant role and reposition these social ventures for sustainable growth.

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