EL ARCA Producers & Consummers: A sustainable system for economic integration
El ARCA Producers & Consumers is a non-profit organization that relates small producers with consumers under Just commerce. It counts on a system of integrated supportive finance that allows this system’s development and growth on a scale.
About You
Location
Project Street Address
Project City
Project Province/State
Project Postal/Zip Code
Project Country
Your idea
Year initiative/program began:
2004
Field of work
Banking/Financial Services
If Field of Work is "Other" please define in 1-2 words below (and explain in detail in the entry form):
Service / Activity focus (If "other" please explain in entry form)
Transaction
Year organization founded (yyyy)
2002
YouTube Upload
Project URL
Positioning of your initiative on the Mosaic of Solutions™ diagram:
Which of these barriers is the primary focus of your work?
Lack of skills and incentives to join formal economy
Which of the principles is the primary focus of your work?
Prove that social return doesn’t preclude financial gain
If you believe some other barrier or principle should be included in the mosaic, please describe it and how it would affect the positioning of your initiative in the mosaic
This field has not been completed. (333 words or less)
Name Your Project
EL ARCA Producers & Consummers: A sustainable system for economic integration
Describe Your Idea
El ARCA Producers & Consumers is a non-profit organization that relates small producers with consumers under Just commerce. It counts on a system of integrated supportive finance that allows this system’s development and growth on a scale.
Innovation
What is your signature innovation, your new idea, in one sentence?
El ARCA Producers & Consumers is a non-profit organization that relates small producers with consumers under Just commerce. It counts on a system of integrated supportive finance that allows this system’s development and growth on a scale.
Describe what makes your idea unique—different from all others in the field.
EL ARCA is a non-profit civil association constituted entirely by small producers and consumers. This organization has designed a financial system based on solidarity for the small producers involved that allows articulation among different sectors. It is based on genuine work, trust and associations acting as guarantees. It is a comprehensive system that encourages communities to become both producers and consumers at the same time. It focuses on 3 aspects:
1 Associated producers: stimulating entrepreneur skills of young people and adults who have less opportunities. Developing productive initiatives to increase their incomes and improve their quality of life (textile, agriculture, food, crafts, services).
2 Responsible consumers: promote conscious consumption through different commercialization channels: family networks, companies, state institutions, etc.
3 Non-profit commercialization management: Achieve an effective organization that articulates small producers with responsible consumers under Just Commerce. The established sustainability condition is a 15% of annual invoicing. The surplus allows social investment in local development processes. The innovation consists on a systemic organization design and on the finance system as a strategic tool that contributes to sustainability.
How do you implement your innovation and apply it to the challenge/problem you are addressing?
The system contemplates the creation of 3 different funds:
1.“Inversol”Fund (inversion + Solidarity fund): individual/family group and companies. It consists of an inversion of USD 33 to develop initiatives (e.g. buying supplies). The aim is to obtain work capital. At the end of the production process, the “inversol” member will be reimbursed his initial investment.
2. rotational credit fund to support scale production. Each “Arca” needs approximately USD 70,000 from entrepreneur investment + company investment + state investment.
3. Loan fund for strategic inversion for the development of inclusive businesses (private inversions).
Do you have any existing partnerships, and if so, how did you create them?
EL ARCA has been working closely with Asociación Emprender Mendoza, it has reached institutional agreements and alliances with
• Universities to exchange and produce knowledge (Universidad Nacional de Cuyo, Universidad Tecnológica Nacional, Universidad de General Sarmiento);
• Companies that consume products produced by EL ARCA (La Marchigiana, Natura S.A., Azules S.A., Molina Blotta Consultora, Minetti, Farmacias del Centro, etc.);
• Foundations that promote and finance projects of local development and solidarity economy: Avina, S.E.S., Ashoka, Minetti, Instituto C&A., Valos (Social responsibility of companies), Solidaridad (Chile), etc.
• OSCs that contribute with their knowledge and believe in community articulation as a transformation tool: Cáritas, Kolping, El Llano, Sancor, Poriahjú, Surcos Patagónicos, Defensores del Chaco, Alternativa 3, La Usina, etc.
• State institutions such as General School Department, INTI, INTA, local councils, Ministry of Social Development, Medonza’s Ministry of Economy, etc.
• Artemisia Foundation has invested UDS 67000 to buy a 20 hectare farm for agricultural projects. Part of the investment will be returned in UDS and another part through training and knowledge developed by the institutional team.
In which sector do these partners work? (Check all that apply)
Impact
Provide one sentence describing your impact/intended impact.
EL ARCA promotes opportunities to produce and consume and also integrates thousands of small producers with conscious consumers who share an inclusive and sustainable project through a financial tool base don solidarity.
Please list any other measures of the impact of your innovation.
I learned that money and land are needed but the most important thing is the responsible involvement of different actors who share the same needs. The scale design of the system EL ARCA means building a shared project among several Arcas (coffers) of community size. Each Arca has approximately 300 small producers, 500 consumer families, 15 companies, 10 OSCs and 5 state institutions. All of them interact systematically.
This means collective citizenship development in which both parties win. The scale growth of the system goes together with a consumer culture change. It is also related to the development of a finance system based on solidarity that generates opportunities for thousands of people who are outside traditional banking systems.
This mechanism generates trust among sectors that traditionally don’t have it and members are willing to invest more than what they originally did. A lot of people have become involved in the project as consumers and by their knowledge and trust.
Does your innovation address and/or change banking regulations?
This field has not been completed. (166 words or less)
How many people does your innovation serve or plan to serve? Exactly who will benefit from your innovation?
500 small producers are currently beneficiaries and as the system is replicated in other communities the number of beneficiaries increases. The credit system works smoothly as the opportunities and sales to conscious consumers increase.
This Entry is about (Issues)
Sustainability
Financing source
How is your initiative financed (or how do you expect your initiative will be financed)?
EL ARCA is a non-profit sustainable system. Every time a product or service is sold 15% of the sale value serves to support the current structure. If balance is lost then a social investment can be made, chosen by producers of the communities involved.
The financial system based on solidarity is funded by the contributions of the entrepreneurs, businessmen, individuals and the state.
If known, provide information on your finances and organization:
• Annual budget USD70.000
• Generated annual income: EL ARCA Mendoza produces annual sales of approximately USD300.000
• Staff: 4 full time, 2 part time, 2 volunteers
What are the main financial barriers and how do you plan to address them?
The finance system based on solidarity requires funds from different sectors (producers, companies, state). This generates trust among key actors who promote and encourage others to participate in the initiative. This implies a change in investment culture. Once this starts happening the system is based not on money but on trust and genuine work.
Aside from financial sustainability, how do you plan to grow the initiative?
The finance system based on solidarity grows together with EL ARCA. We need, more inversion, more work capital and appropriate technologies. This requires a process of permanent management and the participation of more people, organizations and companies who are willing to interact in this project. The strategic growth of inter-sector scenarios around the concept of conscious and responsible consumption is essential.
The Story
Please select one
What was the motivation or defining moment that led to the creation of this innovation? Tell us the story.
I was born in a family who had scarce resources. My dad was a tailor and my mother a housewife. I finished primary school one year earlier as I took all the last year’s exams and I got the second best GPA in my class. At that time I started my first initiative to help my family: a fruit shop to sell fruits produced at a relative’s farm.
When I was an adolescent, I was part of church groups and then I discovered I was really interested in social issues. I was part of a group that trained young leaders from Christian Life Community, which was a secular organization.
In 1990 I was a representative at the General Assembly of the World Christian Life Community, where I shared my experience in training the poorer, and what this meant for local community development.
In 2002 I co-funded Asociación Emprender Mendoza, an organization that promotes entrepreneur skills and concrete opportunities to interact with poor people in Mendoza. I was president of this organization until the end of 2006. I developed a learning approach called Entrepreneurs School. Today the organization has 250 families in 5 production areas.
The system of commercialization of Social Economy based on solidarity: EL ARCA.
Over the last years I took part in several formative experiences related to Solidarity Economy and Local Development.
I have learnt and shared my knowledge on Entrepreneurs School and the development of EL ARCA Producers + Consumers in Argentina and in different Latin American countries (Chile, Uruguay, Bolivia, Colombia, Paraguay, Brazil and Mexico).
I now represent the Southern Cone in the Latin American Board for Economic Integration that deals with experiences of socioeconomic development in the region.
Please provide a personal bio of the social innovator behind this initiative.
Pablo Antonio Ordóñez
I was born in Mendoza, Argentina on 9 August 1964.
My wife is Andrea Acevedo.
My sons are: Facundo (17), Ailen (15) and Francisco ( 7)
I teach Math at CENS 3-415 Jorge Paschcuan, where I was director for 13 years until 2003.
I founded and am currently vice-president of Asociación Emprender Mendoza
Avina economic associate since 2002.
Ashoka fellow since 2004. Member of the world net of social entrepreneurs.
Co-founder the School of Entrepreneurs, a learning approach that stimulates the entrepreneurial skills of young people and adults who need to work.
Co-founder of the system El Arca Producers + Consumers, that articulates small producers with conscious consumers under Just Commerce.
a) Please identify the individuals that your innovation benefits (Please check all that apply)
Producers , Consumers , Holders of assets.
b) Do you help the people you serve to buy goods or services using financial innovation? If so, how?
Mainly machines or tools that are paid with their work. The loan return plan is adequate to the production and sales loan return plan. Each producer knows that if EL ARCA sells his product he can improve his initiative and quality of life. Producers are also consumers of products and services generated by EL ARCA and thus participates in associated purchases getting very convenient prices.
c) Do you help the people you serve to sell goods or services using financial innovation? If so, how?
Have Access to a rotational credit fund that allows groups of entrepreneurs to finance their sales. Producers are paid for their work right after the product/service has been delivered and give back the credit once the consumer has paid for the purchase.
| Attachment | Size |
|---|---|
| Envasados.JPG | 14.39 KB |
| Invernadero.JPG | 14.82 KB |
| Textil.JPG | 15.04 KB |
| Panificadora.JPG | 13.19 KB |
| Finca.JPG | 16.06 KB |
 | 97 weeks agoPablo Fernandez said: Este tipo de emprendimientos es una muestra de que la economía solidaria es una alternativa de crecimiento social válida y exitosa. about this Competition Entry. - read more > |
| 183 weeks agoAlejandra Acevedo said: Ser parte de EL ARCA es una inmensa alegría. Pero sobre todo un compromiso. Me consta el esfuerzo que implica mantener navegando esta ... about this Competition Entry. - read more > |
| 183 weeks agoEmiliano Fazio said: No pude pasar por esta página, sin dejarle a todo el equipo de El Arca mis agradecimientos y reconocimientos por la constancia, fuerza, ... about this Competition Entry. - read more > |
| 191 weeks agoLuís Estéfano Navarro Navas said: Estimado Pablo, antes que nada felicitarte por la encomiable labor que vienes realizando en Mendoza. Mi pregunta era si piensan llegar ... about this Competition Entry. - read more > |
