In the years since its founding in 2014, Acceso has piloted a number of different food system models to support smallholder farmers in various developing countries including El Salvador, Colombia, Haiti, and soon to be Mexico. The initial results were mixed, but the learnings gathered fueled the creation of the bustling agriculture supply-chain social enterprise that exists in El Salvador today.
In a partnership between Acceso and the Mendoza College of Business, our team was tasked with exploring the feasibility of a daycare model to increase employment opportunities for women. In preparation for this project our team conducted research on cultural norms by speaking with Salvadoran people, including classmate Alvaro Magana. The team also examined existing daycare models in El Salvador. Our conversation with Alvaro led us to a connection with Andres Escobar, formerly of IMPCT Coffee, to gather insights from his work building kindergarten learning centers in El Salvador after winning the Hult Prize with the Clinton Global Initiative. This initial data gave us a better understanding of gender norms in Salvadoran culture and provided context for the existing challenges with childcare in the country.
Grateful, reliable, and caring were adjectives we heard frequently throughout our conversations to describe Acceso and the opportunity they have given many in the Chalatenango region. Our team was fortunate to see first hand the direct and indirect impact of the work and know that it stretches far beyond the money paid to the employees and the producers. There was a clear sense of trust extended from the community to Accesso and this trust set the foundation for the interviews and focus group discussion that allowed us to gain useful insights as we vet the creation of a daycare center.
Social impact projects such as this are incredibly important and can be designed to have lasting impact in areas of need, but broader business considerations must be met to ensure financial feasibility and sustainability in the long-run. Standing by the ultimate goal of improving the quality of life for women in the region of Chalatenango, our team recommends pricing the childcare center at $15 per month or at a daily rate of $2. As noted in the financials in our final report, this pricing structure does not allow for a self-sustaining enterprise. At $15 per month per child, break-even is not achievable and the enterprise will constantly be churning through money. However, it is at this low monthly rate that the greatest impact to the women and families of the region will be made.
Although the enterprise could likely be sustained through charging a higher price to employed women and families that can afford it, this will not be accessible to the most vulnerable populations of the community. As a result, further sources of funding will be needed to sustain the enterprise in the future or until the community advances to a point where a higher price can be charged without significantly impacting demand.
As Acceso considers the findings and contemplates the undertaking of this project there is an important question to be left with: is this an initiative that Acceso wants to take on? There is no doubt about the impact that can be made with this childcare center, however is Acceso the right organization to take on this operation? Clearly Acceso has built a successful and growing business model with their agriculture enterprise and it may not be the best use of time or resources to divert attention to this initiative knowing that other organizations are more skilled and specialized to provide this type of work.