Investment Target: $450,000 to complete Nicaragua | $100,000 pilot assessment for second country
Growth Finance Needed: 6-year debt note paid quarterly at 4% interest per year
To date, Supply Hope has:
Empowered 100 Mercado Fresco micro-franchise operators
Contributed to 350 children having a reliable source of income.
Increased income from less than $2.00 / to on average $4.75 / day.
Created $138,000 in commissions earned, since opening the first Mercado Fresco.
Low income communities purchased 750,000 pounds of quality, affordable food with an estimated 35,000 individuals, including 20,000 children with improved access to nutritious foods
Supply Hope’s primary objective is to provide low income families with the opportunity to earn a reliable income. They believe helping families earn steady income is one of the greatest needs of those earning less than $2 per day. Supply Hope solves this problem through micro-franchises, providing goods and services for low income communities. The micro-franchise model can be designed to address informal market issues, providing low income consumers with access to products with higher quality and lower prices.
Micro-franchising provides several key benefits to micro-franchise operators:
- Micro-franchising has a high likelihood of success, important for an already financially vulnerable family.
- Operating a micro-franchise requires few skills and entrepreneurial abilities.
- Micro-franchise operators receive the competitive benefits of lower costs. Centralized marketing, purchasing and distribution (the functions of the micro-franchisor, Supply Hope), support the network of micro-franchise locations, passing on savings they could never gain as independent businesses.
On-going support and training. Supply Hope micro-franchises are part of a community that is learning from each other and supported by programs that help them earn more.
Supply Hope is a nonprofit organization that was founded in 2012. Their goal to bring families living on less than $2 per day out of poverty through micro-franchising. Currently operating in Nicarauga, the organization targets mothers with young children by working with churches and other nonprofit organizations to find micro-franchise operators. Supply Hope then trains operators on proper food handling, customer service and money management, and equips them with food baskets, signs and calculators to start operations. It costs approximately $1000 to open one store, including training, equipment and inventory, and the operators are paid on commission when their consignment inventory is repaid. Supply Hope has a consignment inventory repayment rate of 99.2% and has paid over $138,000 in commissions to date.
Beth is the founder and CEO of Supply Hope. She is a charismatic leader, innovative thinker, and a curious problem solver. After spending more than 25 years as an entrepreneur creating one of the top travel organizations in the country, … Read More
Claudia loves creating sustainable solutions that help to transform people’s lives. As the Nicaragua Program Director, she gets that opportunity every day. Before joining the Supply Hope team, Claudia used her degree in Business Administration to oversee programs that promote … Read More
Erick comes to Supply Hope with 10 years of experience in accounting and finance for both commercial companies and non-profits, making his skills a perfect fit for our social-business approach. He brings expertise in accounting processes, audits and tax laws. … Read More
Alejandra is a true entrepreneur with passion to serve the community. She has broad experience in managing brands, strategic communication, negotiation, team work and leadership. Alejandra has over 15 years of experience in marketing and publicity and graduated from the … Read More
Guillermo joined the Supply Hope team in 2017 with more than 10 years of profession experience in warehouse management and efficiency improvement. He has a degree in Business Administration and gained his experience at big international clothing companies and a commodities … Read More
After earning a degree in International Commerce and Legal Science from the University of Central America, Manuel began a career in marketing and sales for the Nicaraguan agricultural industry that has continued in his role at Supply Hope. As the … Read More
Before joining our team, Vanessa worked on a sustainability project with entrepreneurs from the rural sector. She came to us eager to apply her knowledge from that experience to train our micro-franchise operators in business management and personal development. Vanessa … Read More
Market demand: Supply Hope’s Mercado Fresco stores fill an important niche in the food market for low income families living in Nicaragua. There are very few players offering affordable and accessible food products, with pulperias (small neighborhood shopts) being the predominate providers . However, pulperias do not practice safe food handling practices and predominantly sell junk food. Mercado Fresco is the only provider of nutritious food that practices safe food handling, is affordable and accessible (sold from homes and on the go locations) to low-income consumers .
Products: Mercado Fresco stores currently provide food staples to customers, including fresh dairy produce, vegetables, bread, and traditional foods such as rice, beans and nacatamales. They also offer basic household and personal products. Mercado Fresco Expres stores offer a more limited assortment of products for on-the-go consumption. Supply Hope has partnerships with major food and household product manufacturers and distributors including Unilever, Carghill, LALA, Café Soluble, CCN, Don Pan, and Diinsa and E.Chamorro distributors. These partners offer generous purchase terms, expertise in how to handle and promote their products, as well as free training to operators.
Distribution:. Mercado Fresco stores are operated out of the micro-franchise operator’s home, while Expres locations are in busy areas where low-income people work or commute. Home-based locations are matched with women with young children so they can work from home. In a recent survey, Mercado Fresco operators agreed they were providing an important service to their community.
Please contact the Impact Marketplace team for more information on Supply Hope financials
Supply Hope is currently focused on expanding its Mercado Fresco and Mercado Fresco Expres stores in Nicaragua and projects that it needs $225,000 of funding is required to achieve to sustainability in 2018. Supply Hope won’t stop there.. The company’s Micro-Franchise Center incubates future micro-franchising efforts. Based on their experience with Mercado Fresco, they estimate that it would cost $2 to 3 million to research, pilot and scale three more micro-franchises to fully optimize their Micro-Franchise Center in Nicaragua. Supply Hope believes there are other low-income markets beyond food that could leverage their micro-franchising approach.
Their goal by 2021 is to have 1,200 Mercado Fresco and Expres locations, serving 115,000 low-income individuals, including 50,000 children. This is just one micro-franchise across Managua, Nicaragua – ultimately, they plan to have multiple micor-franchises, servicing other products and services for the base of the pyramid , in Managua and across Latin America.