Vatorx2
Location: Rio Sayula 1710 Colonia el Rosario, Guadalajara, Mexico Mexico
Founded in: 2010
Stage: Napkin (idea)
Number of employees: 1-5
Short URL: vator.co/prospera
Followers (3)
Vatorx1

PROSPERA

Affordable supplies for microenterprises in the developing world
Startup/business
Guadalajara, Mexico Mexico
http://www.prosperando.org
  • About
Company description
The venture provides a selection of low cost supplies to microenterprises while integrating the food manufacturing supply chain. PROSPERA partners with key players to help microenterprises grow. The value added comes from the savings generated to microenterprises, increased selection in supplies and the company’s ability to integrate the whole business system. Microenterprises get cheaper supplies and access to logistics services and retailers.
Team
Business model

There are two mutually reinforcing units. PROSPERA Network, the core business, offers low cost supplies to microenterprises through buying aggregation and charges an average of 10% of the sourced product cost depending on purchase quantity, excluding transportation (which should be marginal).PROSPERA Business Development works on product development and operations and links microenterprises to large retailers charging a % fee on increased sales.


Competitive advantage

The problem: Microenterprises are isolated. Supplies are sourced from intermediaries that provide little options for production and no solution to their distribution challenges. Supplies tend to be high price/low quality.

 

Our services: PROSPERA is already engaged with 45 microenterprises as a business consultant and has secured agreements with a food labeling company, two food packaging companies and two logistics companies to both source and distribute raw materials. The next steps are to begin sourcing and transportation operations and recruit additional microenterprises in the state of Jalisco and other regions of Mexico.

 

The market: Microenterprises are the biggest source of employment in Mexico, responsible for 65% of all the jobs available in the country. Due to the 2008 crisis, microenterprises are flourishing in Mexico as an increasing number of people are being laid off from large corporations and are setting up small businesses. PROSPERA will focus on the food industry as this is the sector has proven resilient to the downturn and employs around 2 million people.

 

Competition is fragmented. Raw material producers tend to focus on large buyers. Traditional middle men work with in isolated communities and rely on physical interactions to acquire new customers. Business associations only work with a limited number of microenterprises as they rely on memberships. Development agencies source supplies for their constituents but have little incentives to offer a wide selection or competitive prices.

 

Competitive Advantage: Supplies sourced directly from producers. Lower cost to transport supplies through a logistics partner. Sales leads are originated from reputable organizations providing credibility to the company.