Recent graduate of Oxford Saïd MBA 2015-16, Andres Baehr Oyarzun, spent his Summer Consulting Project in Mexico with 2015 The Venture finalist, Echale a tu Casa. Andres shares his story.
“Echale, echale!”, screamed a child behind us, while we watched Mexico City’s Lucha Libre. Chubby wrestlers kept slapping each other’s chests while we sat next to our supervisor. This was not your average MBA consulting project, I thought.
It was the first time we heard the word Echale outside of the context of ‘Echale a tu Casa‘, which can be translated as ‘Throw your Heart at your House”. Echale is Mexico’s first B Corp, a finalist in Chivas’ The Venture competition in 2015, and the recipient of the ‘Best of the World’ award by the Rockefeller Foundation. The organisation works to provide affordable housing through an innovative and effective model. We were in Mexico to help them prepare for releasing an investment prospectus – post- competition support that was financed by Chivas after Echale’s participation in The Venture. We hoped to learn more about an innovative social business model while using our skills to add value to the Echale team’s work.
And learn we did – the model works as follows: imagine you are a low-income homeowner in need of a new home or home improvement work. Due to lack of access to finance, you will usually be limited to making necessary changes to your home as your savings allow – on an ongoing/ ad hoc basis, rather than during a singular, planned project. In many cases this leads to substandard home conditions and overcrowding. With Echale’s model, families only have to finance and carry out 30% of their home construction and Echale helps them to complete the rest. By creating access to both a government subsidy and a credit service, Echale enables homeowners to complete a new home or improve an existing one, in a sustainable manner. The impact goes beyond housing. Families get access to financial advice and products, they are active participants in the building of their own homes and the environmental impact of home construction is reduced by the use of Echale’s eco-friendly construction materials.
We drove with Alejandra, Director of Promotion, into Jocotitlán, one of the rural communities where Echale operates. “I wasn’t too sure about social entrepreneurship” she said, “until I met Francesco (Echale’s CEO and a regional celebrity of sorts). After speaking with him, I knew I wanted to be part of the team, so I contacted him again, and again, until he just said ok, ok, come work with us”. 50 houses have already been constructed in Jocotitlán and the team is aiming to construct 500 more. This is just a small portion of the 30,000 completed homes, 150,000 home improvements and more than one million lives already positively affected by Echale.
Alejandra pointed at the steel beams that can often be seen poking out from the roofs of half-constructed houses. “You see those? They call them the ‘beams of hope”, she said. “Owners leave the beams in case one day they can afford a second floor”.
We visited Maria del Carmen, one of the homeowners who had recently moved to an ‘Echale’ house. She walked us around her old home. We looked at the blue cracked walls, dirty floors and pierced tin roof. The contrast with the tiled based and firm structure of the new house was remarkable. Maria represents one life improved, but a sea of homes is waiting to be built; in Mexico, an approximate 4.9 million families live in substandard housing.
After two weeks of bilingual Skype teleconferences, research, modeling and writing, we finally had to say good-bye to the Echale team. During our last meeting with Francesco we felt a combination of sadness, gratitude and excitement.
“Social impact is like a quantum gate”, said Francesco and raised his palm. “Once you touch it, you can’t go back. Once you have experienced it, you can’t go back”.
We packed up our bags and made our way back to Oxford. Back in Mexico, the luchadores would keep slapping their chests, the beams of hope would still stand high and the Echale team would still be there, throwing their hearts at it.
The Venture is looking for social businesses from around the world that are using business to help create a better future, if you are interested in applying or know of someone who should, head to their site to learn more www.chivas.com/the-venture.