2 results
Chapter 5 - Tecnosol Follows the Sun
-
- By Felipe Perez, Professor at INCAE Business School in Nicaragua., Martha Sofia Cifuentes, Credit officer at Banco ProCredit in Managua, Nicaragua.
- Edited by Daniel Esty
-
- Book:
- The Labyrinth of Sustainability
- Published by:
- Anthem Press
- Published online:
- 29 May 2019
- Print publication:
- 31 January 2019, pp 61-80
-
- Chapter
- Export citation
-
Summary
Abstract
Tecnosol is a solar power company founded in Nicaragua in 1998, which now has twenty-one branches throughout Central America. The company has profitably responded to the high demand for electricity in a rural region suffering from energy poverty, and has brought electricity to over 500,000 Central Americans. It has pioneered the use of microcredit to offer quality solar products to customers in rural areas who would otherwise not be able to afford them. Tecnosol then follows up on each purchase by teaching customers how to maintain their solar products so that their investment pays for itself quickly. This chapter chronicles Tecnosol's founding in the aftermath of the Nicaraguan civil war and analyzes its expansion throughout Central America. It then breaks down how Tecnosol attains results measurable at the triple bottom line— economic, environmental, social— demonstrating how sustainability can be a profitable business strategy, even in communities with low purchasing power.
Introduction
Tecnosol, a solar power company in Nicaragua, was founded in 1998 by Vladimir Delagneau, a Nicaraguan soldier who learned about solar power during the country's civil war in the 1980s. In founding Tecnosol, Delagneau was able to transcend the limitations of state regulations, contribute to Nicaragua's socioeconomic development, and enhance environmental protection. Driven by its founder's commitment to sustainability, Tecnosol has responded to an untapped market for clean energy in northern Nicaragua. By continually updating its position in the solar power field, the company has expanded; it now has 21 branches, covering rural and urban markets in Nicaragua and throughout Central America.
Tecnosol's success shows it is possible to do profitable business in a region characterized by energy and fuel scarcity. By selling and installing solar panels, Tecnosol offers customers in Central America an off-the-grid, environmentally friendly energy solution, transforming the quality of life and economic productivity of rural residents. Today, the renewable energy company continues to operate successfully in areas where access to electricity is limited and power is expensive, as well as areas that lack institutional frameworks to encourage clean energy. Not limited to rural markets, however, Tecnosol has also brought clean energy to the urban market, where electricity is even more expensive and environmentally destructive.
Chapter 3 - Grupo Vanguardia Revitalizes Plastics Recycling in Honduras
-
- By Felipe Perez, Professor at INCAE Business School in Nicaragua., Martha Sofia Cifuentes, Credit officer at Banco ProCredit in Managua, Nicaragua.
- Edited by Daniel Esty
-
- Book:
- The Labyrinth of Sustainability
- Published by:
- Anthem Press
- Published online:
- 29 May 2019
- Print publication:
- 31 January 2019, pp 37-46
-
- Chapter
- Export citation
-
Summary
Abstract
Grupo Vanguardia, a Honduran plastics company, launched an innovative recycling initiative that has emerged as a core business strategy and foundation for marketplace success. This inclusive business model was built to reflect the economic realities of Honduras, a developing country with a struggling economy. By harnessing existing waste streams and a large base of previously informal workers, Grupo Vanguardia has delivered economic, environmental, and social gains in northeastern Honduras. The company has also gained higher margins by using recycled plastic, reducing waste, and creating jobs for lowincome Hondurans. The Grupo Vanguardia case study demonstrates how sustainability can create opportunities for businesses in countries where the government is unable to provide essential services like waste management.
Introduction
Grupo Vanguardia, a Honduran plastics maker, has become a corporate sustainability pioneer. The company has developed a set of social and environmental practices that have given it a sustainabilitydriven competitive advantage. Vanguardia's success is especially notable because the plastics industry has long faced criticism for environmental damage and low recycling rates. The company's unique business model emerged from its engagement with local communities and commitment to helping Honduran society. Founder Eduardo Moya developed this guiding vision in partnership with the low-income informal workers who collect and recycle waste in northeastern Honduras. That collaboration, Moya learned, worked well. Indeed, after Grupo Vanguardia provided training and financial support, many of the individuals in the informal trash collecting sector were able to start formal businesses. The collectors’ incomes increased, the company's bottom line improved, and discarded plastic was salvaged for successful reuse.
Grupo Vanguardia's Best Practice
Grupo Vanguardia has succeeded because it has developed a sustainable business model that reflects the realities of the Honduran economy. Honduras ranks among the poorest countries in Latin America, and informal work makes up a large share of the economy. Since its founding in 1992, Vanguardia has engaged with Hondurans to develop a new approach to plastic production. First, the company has taken advantage of the opportunity to use lower-cost recycled plastic as the feedstock for its manufacturing process, rather than relying on more expensive imported virgin plastic.