Tag Archives: Peru

Grupo A&E's headquarters in Iquitos, Peru. (Photo: Staff)

This article is part of a series of interviews with participants of Instituto Invertir’s EmprendeAhora entrepreneurship and leadership training program in Peru. Read the introduction to the series and Part 2.

If you are an avid runner looking for a unique location for your next race, consider checking out the jungle scenery and oxygen-rich air in the Amazonian city of Iquitos, Peru. On February 12, the main city streets were free of the normally ubiquitous swarm of motorcycles and three wheel rickshaws called moto-kars as nearly 500 runners participated in Iquitos’ first ever Amazonica 10 kilometer marathon – an event designed to engage the community in the promotion of sport and healthy living.

The race was organized by Grupo A&E, a business founded and operated by Jorge “Coco” D’Azevedo, alum of the first EmprendeAhora (formerly LiderAcción) program in 2008. With this first marathon, Grupo A&E added to an already large list of services that it offers, including: training in business management, leadership, motivation, and entrepreneurship; organizing academic, cultural, and entertainment events; and conducting surveys and market research.

In mid-January I had the opportunity to meet Coco in the Grupo A&E office in Iquitos to learn about his background prior to EmprendeAhora, hear about his experience in the program, his business venture, and what it is like owning and operating a business.

As the son of two university employees, Coco grew up thinking he would be an employee somewhere too. He got the entrepreneurial bug in high school, however, when he and his friends began noticing the difference between those who had money and those who did not. Based on their observations, business owners had money, employees did not.

But while in university Coco reverted to the dependent mentality and worked at various internships while trying to decide which career he would pursue. Then his mother told him about EmprendeAhora – a scholarship program which she heard about on RPP Noticias. After a bit of investigating, Coco’s desire to learn about entrepreneurship drove him to apply. It didn’t hurt that the scholarship covered 100% of the program costs – something rare for Iquitos.

About the program, Coco said, “it is an experience that changed me and made me see other points of view and other ways of life.” EmprendeAhora showed him that being an entrepreneur, having his own business and working for himself was an achievable alternative to working as an employee somewhere. Coming from a university in Iquitos with a leftist anti-business approach, the lessons and practical application of business concepts during EmprendeAhora helped Coco better understand what it means to live (and make a living) in a democratic, free-market economy.

After completing the EmprendeAhora program in early 2009, Coco started a precursor to Grupo A&E called LIVE (Leadership, Values, and Entrepreneurship). The core mission was to strengthen entrepreneurship and leadership skills among Peruvians – starting at the regional level. Coco included the leadership theme because it was something that he was particularly drawn to and felt was vital as a result of EmprendeAhora.

In the first year of operation, LIVE organized two major conferences at the regional level: the 1^st Congress on Leadership and Entrepreneurship, and the National Congress of Successful Women. In 2010, LIVE changed its name to Grupo A&E, registered and obtained its Tax Identification Number. This year nearly 1,000 people attended events on entrepreneurship and leadership organized and led by Grupo A&E.

In late 2011, the business expanded to include production of a television program entitled “Somos Empresa Loreto (We are Business Loreto).” The objective of the program is to show off cases of entrepreneurs, businessmen and women, and businesses in the Loreto region, sharing their experiences and advice for others that wish to create their own businesses.

Another new line of work builds off of the $6,000 investment in a professional camera for the television program. Branching out into offering marketing services, Grupo A&E has begun filming commercials for other businesses in the region. Because the camera was already purchased for the purpose of the television program, the money made from this marketing service is pure profit.

In the last four months of 2011, Grupo A&E’s costs averaged around 45% of the total income. With the new services and low overhead costs, this number is likely to improve in the first half of 2012. Coco is confident to say the least. When asked what his Plan B is, he said, “there is no Plan B because this is the company that I like and want to have and it is certainly going to work!”

With so many different services and activities going on, Grupo A&E is clearly not a one-man show. In fact, Coco has two business partners in this venture and three employees: an editor, a production assistant, and an administrator. An accountant is shared with the restaurant of one of his business partners. Although Coco oversees all of the activity, his title on his business card is simple: Motivator.

It is a fitting title. During my time in Iquitos it was hard not to be motivated by such a passionate person with big ideas for his city and country. Not to mention by someone that took the risk of starting his own business at such a young age with the added pressures of a wife and young child at home. That said there are days when Coco has to give a little extra motivation to himself. “Perseverance is the key characteristic of an entrepreneur. In my experience, it is difficult, things do not go your way, but you must persevere.”

The idea behind EmprendeAhora was to create a training program that promotes entrepreneurship and market economy as the best way to overcome poverty in Peru. While many alumni have gone on to create successful businesses selling products or other types of services; through its training programs, television show, and marketing services, Grupo A&E has made a business out of promoting the basic concepts of EmprendeAhora and sharing it with a wider audience.

The success of the Amazonica 10K on February 12 may lead to a surge in marathons in Iquitos – promoting a healthier life style and community engagement. Here’s hoping that Coco’s success as an entrepreneur, leader, and motivator leads to a similar swell in the number of entrepreneurs – promoting a more democratic and economically developed Peru.

A student's graduation certificate hangs on the wall of his workshop. (Photo: CIPE Staff)

Since I first visited two years ago, Instituto Invertir’s EmprendeAhora (formerly LíderAcción) entrepreneurship education program has gone from success to success, including winning CIPE’s inaugural  Leading Practices contest in 2011. In three years, the program — which is targeted at university students from the poorest regions of Peru — has trained 430 students who have gone on to create at least 40 new businesses and arrange leadership and entrepreneurship workshops for more than 12,000 other students. Surveys have consistently shown positive changes in the attitudes of EmprendeAhora alumni towards democracy, as well as more optimistic perceptions about how the market economy works and their ability to participate in it.

These aggregate statistics are great, and will certainly be strengthened by the 120 students who began the program in January 2012. Yet all too often we are satisfied with reporting “big picture” numbers and neglect follow up at the individual level where real change is initiated.

Last month I was enlisted to catch up with some of the alumni to find out what they are doing now and get a better understanding of how the program has had a positive impact on the youth themselves, their families, their communities, and also find out what makes the program work.

I plotted my course for a 10 day jaunt through Peru that involved stops in the cities of Iquitos, Chiclayo, and Huancayo. The cities were selected not only because they are home to some of the more successful alumni, but also because each represents a distinct geographical region of the country.

During my trip, I interviewed more than 25 alumni, regional and municipal government authorities, university professors, program speakers, and private sector sponsors. Based on these interviews I was able to draw some basic conclusions about why the program works.

One of the most important aspects of the program is the opportunity it provides for students to meet intelligent and talented peers from all over the country. Due to the natural isolation provided by the Andes Mountains and the Amazon rainforest, Peru is one of the most culturally diverse countries in South America.  The opportunity to meet peers from other regions not only increases the students’ understanding of their country, it also creates a broad network of contacts with which to share experiences. Many alumni said that the relationships built over the course of the program created the necessary motivation for them to act on their ideas once they returned to their communities. A sense of friendly competition certainly exists among program alumni.

The fact that the program is entirely free is another major factor in its success. It gives an advantage to bright, motivated students who may lack the financial resources. Given that it is incredibly rare for young people in the poorer regions of Peru to have the opportunity to participate in a training program like this for free, all the alumni I spoke with recalled having the initial reaction: “What is the catch?”

The only “catch,” if it can be called that, is that participants are required to attend all sessions and complete all assignments in order to receive their certificate. While there may always be a few free-riders, the majority of program alums shared a sense of indebtedness and a desire to go above and beyond to make the most of what they had learned.

As I traveled around Peru, I noticed that there were a number of youth training programs in the regions I visited, many of them run by local governments, Chambers, and associations. These courses delve into marketing, costs, sales, etc., but are generally focused on training people in specific skills like baking, mechanics, food, and crafts. With EmprendeAhora, business plan development and aspects of running a business also form the meat of the program, but I repeatedly heard that the modules on leadership and citizenship set it apart from other types of entrepreneurship training programs.

Nearly every alum I met, whether they had their own business or not, was engaged in some sort of social project. Cases of volunteering, working with a non-governmental organization on social issues, or incorporating social projects into the line of business were very prevalent among alumni. EmprendeAhora alumni are not just contributing to the country’s economic development, but are motivated to play a role in the country’s social development as well.

These are just the highlights of the many lessons I learned while in Peru. In the coming weeks, the CIPE blog will feature detailed profiles of the students and businesses I met with, so keep checking back to read about some inspiring individuals.

(You can get a head start by checking out an article on 2008 alum Karolo Pérez Alvarado from Tarapoto.)

This article is the beginning of a series of interviews with participants of Instituto Invertir’s EmprendeAhora entrepreneurship and leadership training program in Peru. Read Part 1 and Part 2.