Mr. Yan Jingyu [2], owner of Jiangyou Xun Pai Organic Agriculture Co. [3], had a dream of making organic agriculture a common practice in his native Sichuan province is one that he has been cultivating since he began harvesting the first Damascus rose in 1969. Since then, Yan has not only worked to convert degraded soil into productive land, he has become an entrepreneurial trendsetter by bringing organic practices to the farmers of rural China. As Xun Pai begins to work with international buyers, the company’s quality standards and scalable methods are likely to spread throughout the regional agricultural sector.

Yan’s rose fields are maintained by a cost-effective biological process. Rather than using powerful pesticides, for example, he distributes natural predators throughout his crops to protect them from destructive insects. This is not only much less expensive than the conventional method, it is highly innovative in an industry where some crops such as rice may be treated with up to 15 different pesticides. The founder of Xun Pai has a clear passion for his work and remarkable mentoring abilities that are evident in his efforts to duplicate this process among other practitioners. Aside from having written a textbook that is still part of the curriculum in many agricultural programs, he trains 20,000 farmers occupying 1,000 hectares of land in organic practices. The popularity of Yan’s mentoring is evident, proving that his methods are not only sustainable, but scalable as well.

Xun Pai is also proof of the crucial role Small and Medium size Enterprises (SMEs) play in forming supply chains with larger firms. Two major Chinese buyers, Tetea and Ostore, are going to purchase Xun Pai roses in bulk as ingredients for organic cakes, teas and facial powders. Now international firms as well are beginning to recognize Xun Pai for its quality product and superior market positioning, being one of only two organic rose producers in the country. Yan is negotiating an investment from Granit [4] after having met representatives of the Swiss company at an Investor Forum hosted by New Ventures [5], a program of the World Resources Institute. Granit is planning to use the roses as a key ingredient in a line of essential oils, and its investment will help Xun Pai expand to keep up with international demand, particularly as it prepares to become a supplier for German companies. As its sales continue to grow, Xun Pai serves as a strong example of the value sustainable SMEs can have as essential actors in forming linkages within an economy and as catalysts for positive change in local businesses.