New Ventures Intern Jesse Last discusses his recent interview with Terrafertil founder David Bermeo and ponders the darker side of conventional roses.

Read Jesse's full profile of Terrafertil here

Bad news folks - and no, I'm not talking about the recent Yankees surge. Rather, I'm referring to what I recently discovered about roses. I know, what could be bad about roses - they smell good, they look good, and giving them always earns you points. But how about if your special someone knew your gift was actually poisoning him or her along with developing economy workers? That's right, the beauty of the rose often masks an ugly reality of cancer-causing pesticides, poor working conditions and environmental damage. Fortunately, we have alternatives. First, while still limited in number, "green" roses can be found. Second, organic dried fruits are not only better for the environment and those that grow them, but they make a far more delicious gift.

David Bermeo, one of three founders of the dried fruit company Terrafertil, came to a similar realization in 2005. While presumably less obsessed with the rose phenomenon than I, he saw first-hand the damage the rose industry was doing to the rich ecosystem of the Ecuadorian highlands - as well as to the poorly paid workers. Coming from a family immersed in the food business, he also recognized increasing market demand for organic dried fruit. He put his entrepreneurial spirit to work and founded Terrafertil, a company offering natural and organic dried fruit for distribution in both domestic and international markets.

Unlike traditional distributors, David purchases the majority of his fruit from small, organic farms. The conventionally-grown remainder also comes from local farmers, and in the past several years he has connected many growers with technical advisors in organic production. His suppliers receive 70% more than those in the flower industry, a practice that has earned Terrafertil FairTrade certification. And, while David acknowledges that these business practices add to his costs, he sees a positive return based on the growing premium consumers will pay for responsibly grown produce. His company's impressive growth backs his assertion up. And if the business case were not enough, he maintains that "at the end of the day, these practices are the right thing to do."

Last week WRI hosted a meeting of the International Private Enterprise Group (IPEG), featuring a guest from Agora Partnerships. Ricardo Teran, Managing Director of Agora Partnerships in Nicaragua, delivered a presentation focused on venture finance and small business development in Central America, specifically Nicaragua. Fifty audience members from development organizations around DC attended and participated in the discussion.

Agora Partnerships is a non-profit organization dedicated to providing talented entrepreneurs in emerging markets with the tools, aspirations, networks, and financing necessary to launch successful, socially responsible businesses. Ricardo J. Teran is co-founder of Agora Partnerships and an Aspen Institute fellow on the Central American Leadership Initiative. Ricardo found inspiration to establish Agora while working with Technoserve on a business plan competition in Nicaragua where he found that he shared the vision of business as a driver of social change with other entrepreneurs.

Agora made its first investments in Nicaragua in 5 firms and contributed 400 to 500 man-hours of consulting. He argues that now there is more liquidity than ever, but questions whether there are enough investment-ready projects.

The projects that Agora serves are all early-stage, high-risk ventures. Agora works intensively with the companies in its portfolio and provides comprehensive consulting services. Ricardo stressed the need to mold Agora’s consulting services to different companies’ operating environments. In his own words, “We are like a chameleon and a slinky--we need to blend in, and yet be flexible.”

Ricardo observes that the entrepreneur’s profile is the key to a successful business. Agora works with first-class entrepreneurs who can demonstrate that they have the motivation, vision, and tenacity to succeed. Ricardo attributes 80% of a business’ success to the entrepreneur’s skills and 20% to business elements.

Agora has worked with 30 companies that fit its entrepreneur profile, including Bamboos Casa, a company that takes waste bamboo from Nicaragua and converts it into social housing building materials, and Santos Reyes' Shoe Factory. Ricardo showed the following video to explain Santos Reyes’ work:

Santos Reyes, the story of a former shoe cleaner who becomes a shoe factory owner, is very compelling as an example of the kind of investment opportunities as yet undiscovered. A handful of SME development organizations—Agora, Acumen, Aavishkaar, New Ventures—are working to bring these businesses to market, but there are innumerable high-potential entrepreneurs and SMEs still to be found.