TC-305

Scojo Foundation’s Experience in Supporting Women Entrepreneurs

Graham Macmillan, Director, Scojo Foundation

Summary

There are over 1.3 billion, aged 35 and up, who suffer from an easily correctable condition—presbyopia. In the West and more affluent urban centers, presbyopia is easily overcome by purchasing a pair of simple reading glasses available in pharmacies, grocery stores, and even bookstores. Today, however, most people in developing countries do not have access to affordable reading glasses. Without having a simple pair of reading glasses, a person’s livelihood becomes negatively affected because he or she can no longer see clearly. People such as tailors need them to thread a needle; mechanics need them to diagnose a problem in an engine; and jewelers need them to set tiny stones. Without clear vision, these people are greatly challenged to remain economically productive members of their communities while maintaining a decent quality of life.

Scojo Foundation was founded four years ago to create and sustain livelihoods through the sales of affordable reading glasses. Scojo Foundation’s operating goals are to increase the number of people with access to reading glasses, create jobs for local entrepreneurs, and facilitate access to comprehensive eye care services. Scojo Foundation’s model, developed and tested in India, El Salvador and Guatemala, trains local entrepreneurs in two days to screen members of their local communities and sell them high-quality, affordable reading glasses. In addition to dispensing reading glasses, Scojo Foundation’s entrepreneurs also are trained to refer patients with more complex eye problems to institutions that are able to provide more in-depth eye examinations. What is unique in Scojo’s model is the ability of the entrepreneurs to double their monthly income selling reading glasses to their family, friends, and neighbors. Furthermore, Scojo Foundation is able to capture enough resources through the sales of these glasses to sustain its activities. It is truly a win-win scenario for all involved.

Mission and Objectives

Scojo Foundation was founded in 2001 to create and sustain livelihoods through the sales of reading glasses to those in need in developing countries. Its objectives are to increase the number of people with access to affordable reading glasses, create jobs for local entrepreneurs, and facilitate access to comprehensive eye care.

The Challenge of Presbyopia

People (i.e. weavers, tailors, artisans) need reading glasses to see up close to sustain their livelihoods and maintain their quality of life in later years. Not everyone can see clearly up close because of a physiological problem called presbyopia. Presbyopia affects 95% of the population aged 35 or older.[1] Nearly 1.6 billion people living in the developing world need reading glasses. Yet less than 5% of people in those countries currently have access to reading glasses they can afford.

Overcoming Challenges

Scojo Foundation has identified three challenges to overcome presbyopia in the developing world. First, there is a problem of knowledge and awareness. Poor people living in developing countries are generally unaware of what presbyopia is and that there exists a simple and affordable solution to blurry, up-close vision caused by ageing. Second, there is a problem of access. In the developing world, reading glasses are primarily available in local optical shops in urban centers. The poor who live in rural areas have little-to-no access to these stores. Finally, there is a problem of affordability. At present, reading glasses are sold exclusively by eye doctors and optical shops at significant margins making them too expensive for the average person. Furthermore, in order to reach these optical shops and doctors, people have to take a day off work and travel great distances. This effort adds an additional opportunity cost to getting the glasses.

Program Design & Implementation Plan

Over the next three years, Scojo Foundation intends to sell 100,000 pairs of reading glasses, train at least 500 entrepreneurs, and refer nearly 30,000 people for advanced eye care in India, Guatemala,Bangladesh, and El Salvador. To achieve these goals, Scojo Foundation utilizes a market-driven approach. To realize long-term success and impact, Scojo Foundation’s programs must be run like businesses in a competitive marketplace.

From the outset, its model is designed to be sustainable, competitive, and driven through entrepreneurship. To tackle the challenge of overcoming consumer awareness, Scojo Foundation has utilized several innovative social marketing techniques. Creative messages are spread through radio advertisements, flyers, church groups, local business associations, Peace Corps volunteers, tables and booths at markets, mobile units, and the entrepreneurs.

To increase accessibility, Scojo Foundation’s innovative distribution channels bring reading glasses directly to hard-to-reach urban, peri-urban, and rural consumers. Entrepreneurs are selected and trained to start their own reading glass businesses. They not only sell the glasses to their neighbors but are trained to refer those in need of more complex eye care to local eye health clinics. In addition to entrepreneurs, mobile units are used to sell reading glasses on a mass scale. Mobile units are able to drive up to factory gates and sell directly to consumers.

To solve the problem of cost, Scojo Foundation is expert at sourcing low-cost reading glasses and benefits through the assistance of its parent company—Scojo Vision, LLC. This unique partnership not only adds value to the model through the sourcing of products but their design as well. Scojo Foundation can then pass these low costs onto our entrepreneurs who can sell the reading glasses at a fraction of the cost charged by opticians and eye doctors.

Scojo Foundation drives sales through affordable price points, brand-loyalty and innovative distribution channels. Current products are sourced from major manufacturers at low cost and offered to the customer at reasonable price points--roughly 10% of the customer’s monthly income. This makes reading glasses a more affordable product than previously while maintaining the highest quality.

Offering four different reading glasses styles in five powers along with unique, locally-appropriate names helps to generate brand loyalty. One of Scojo Foundation’s greatest strengthens is the reputation of trust and quality in its brand. Furthermore, Scojo Foundation is able to listen to its customers because of the presence of Vision Entrepreneurs in the villages. As a result, we have learned that our customers want sunglasses, protective eyewear, and other optical products in addition to our reading glasses. As a result, we will be offering these new products to meet customer demands. Scojo Foundation believes that as the market for reading glasses develops, so does the market for other optical products and eye care services.

In addition to expanding its own distribution channel, Scojo Foundation staff is developing a project with Hindustan Lever Limited’s Project Shakti program. Over the next nine months, 50 Shakti entrepreneurs will add Scojo Foundation reading glasses to their product offerings. Once successful, Scojo Foundation anticipates adding another 1,000 entrepreneurs within 16 months.

Women Entrepreneurs

In order to overcome the challenges of awareness, accessibility, and affordability, Scojo Foundation has identified important levers for change. As well, Scojo Foundation has recognized the important role women entrepreneurs can play in maximizing these levers for change by helping them start their own businesses directly selling reading glasses to their communities. To address the challenge of knowledge and awareness, Scojo Foundation spends considerable time and resources on market creation through direct social marketing initiatives and providing marketing tools for the women entrepreneurs. To increase accessibility to the reading glasses, innovative distribution channels such as the women’s micro-enterprises, mobile units, and retail shops have been developed to bring the product closer to the consumer. Lastly to address the problem of affordability, Scojo Foundation has commoditized reading glasses by making them a consumer product that is easily sold by the women entrepreneurs thereby taking them out of the exclusive hands of eye care professionals. This mimics the successful shift that occurred in the West that made reading glasses a commodity item rather than one wholly controlled by eye care professionals.

In addition to selling reading glasses to their customers, Scojo Vision Entrepreneurs develop referral partnerships with local eye hospitals. Scojo Foundation estimates that nearly 35% of all potential customers are referred for more in depth care.

Referrals to local eye hospitals build trust and strengthen our Vision Entrepreneurs standing in their community. Customers feel that they are working with a well-trained and knowledgeable sales person. Most importantly, referrals build awareness of the importance of eye care in rural areas and strengthen Scojo Foundation’s position with local eye care providers.

The most critical role Scojo Vision Entrepreneurs play is creating access to an untapped market. By being community-based, Vision Entrepreneurs who live in remote villages are able to sell eye care products where no one else is on a permanent basis. Unlike many organizations that are mission-oriented, Scojo Foundation is able to have a permanent presence through the entrepreneurs. Furthermore, through the Vision Entrepreneurs and Scojo’s data collection, we have more knowledge of and access to rural reading glasses markets than anyone in the world. The level of trust that has been developed between Scojo Vision Entrepreneurs and their customers is critical to successful sales and awareness of eye care. This level of access to previously untapped markets offers a unique growth opportunity for future partners as well.

Below is an excerpt from one of Scojo Foundation’s partners in Guatemala witnessing the dramatic impact entrepreneurship can have on one woman.

Dona Yolanda (Yoli) Acabajon
Age 35
Santo Tomas, Guatemala
by George Glickley, Community Enterprise Solutions
I just wanted to take a minute to write a bit about an experience I had the other day with our newest Vision Entrepreneur, Yoli Acabajon. Now I am a little biased when it comes to Yoli because I lived with her and her family (three kids, Margarita 15, Ivan 12, Edgar 6 and her husband Leonel) for the first three months that I lived in Guatemala. When I arrived that first day (can it be four years already) I was a wreck. I hated beans and tortillas, and couldn't speak more than a few words of Spanish — mostly what I had been able to pick up in the movies. I had never been outside of the country before, not to mention that I had never in my life seen a house so poor, let alone lived in one. But she was mom to me in every sense of the word and I truly believe were it not for her, my stay in Guatemala would have been a short one.
So when we wanted to start to look for more women to work as entrepreneurs, she was someone who I really wanted to give an opportunity tobecause that is our goal as an organization. Because of this Greg (my partner at CE Solutions) and I decided to visit and present her with the opportunity, which she was very excited about. But I'll admit I was a little worried. She is not highly educated and I know that she would do anything for me and I was concerned that she would participate just not to let me down. Plus, she had been ill over the past couple of months with stomach issues (maybe an ulcer) which we in no way wanted to worsen.
But after talking with her and seeing her enthusiasm, we decide to go forward and give her and a friend the necessary training. When I had last visited with her we were in the final stages of teaching how to give an exam and we agreed that they would continue to practice on a daily basis. I would return again in a week to help them plan their first campaign.
When I returned the following week, something wasn't right: she seemed apprehensive. But before I could ask her what the matter was, she started to explain. "Jorge" she said to me, "I have to tell you something, and please don't be upset". She then started to explain to me in words (the expression on her face spoke volumes, as she explained her smile just got bigger and bigger) the "problem". The small town rumor mill had circulated the new news about what Yoli was doing, and people with all sorts of eye problems started to come to her house. Some she could not help, which is normal since some eye-problems require medical attention. But she could help four of the people. And she did.
She almost broke down in tears as she explained to me how one woman came to her begging for help. She said that she was in danger of losing her job at a local factory where she cuts and cleans vegetables for export because she was not able to see as well as the others, which was causing her to work too slowly.
So even though Yoli and I had agreed that she would not go out on her own and sell yet, she gave the exam, identified the woman's problem, and suggested a magnification which would help her. Yoli said that when the woman put on the glasses and retried the exam that she was so excited that she was not able to sit, so they had to do the rest of the exam standing. She bought the glasses on the spot and hugged Yoli.
As Yoli continued to tell me this story I looked up from my notes to see a look on her face that I had never seen before: a look of pride and incredible confidence. Now, Yoli is a proud woman, and I would imagine always has been. That is her spirit. She is proud of her kids and proud of her husband. But this was different. Unfortunately, in this culture women are often taught not to be proud of themselves and are rarely given an opportunity to stand out, maybe that's why the look on her face struck me as so different. But there was no mistaking it: this was a look of amazing self esteem — a look that said "I can!"
She then looked me right in the face, reached out and touched my arm and said "Gracias Jorge", "GRACIAS". These are the moments that make this hard and oftentimes extremely frustrating work worth it. And this was one of my most memorable by far.
She continued to explain how she had already sold four pairs of glasses, how she was excited to help more people, how she thought that being involved has helped her stomach problems because it was a positive distraction and then began to talk me through her plans for the upcoming weeks, including a meeting with the local pastor to set up her first big campaign at the church. I am sure that she will have great success and her share of hard times as well. But for me, regardless of what happens in the future, she and the program are already a success.

Achieving a Global Scale

Scojo Foundation intends to achieve a global scale through its superior staff, social marketing, product pricing, and franchising. This mix of critical elements will enable Scojo Foundation to achieve a global impact.

Scojo Foundation’s leadership consists of individuals with experience in business, international development, social entrepreneurship, and eye care. This combination of experience allows for a unique blend of skills well-suited for an emerging social enterprise. The demonstrated success of Scojo Foundation’s leadership ensures that success with be achieved through hard work, determination, and creativity.

Innovative social marketing campaigns at the local level raise consumer awareness about presbyopia and the need for reading glasses. Scojo Foundation continues to work with early adopters to demonstrate the impact of reading glasses. These early adopters stimulate local demand and support community recognition that reading glasses are essential to economic productivity and quality of life.

Through relationships with large-scale optical manufacturers, Scojo Foundation is able to source reading glasses at very low costs. These low costs coupled with efficient distribution systems allow Scojo Foundation to sell its reading glasses to the entrepreneurs at 50% margins. The profits from these margins will support investment in program replication and will reduce dependence on traditional sources of grant funding.

Conclusion

We are creating a powerful blueprint to enable Scojo Foundation and our partners to replicate and scale our operations worldwide by empowering women entrepreneurs. We aim to design a model so that it can be franchised and each franchise will be profitable and thus self-sustaining. Local companies, non-governmental organizations, and associations will be able to receive training, technical assistance, branding, product sourcing, and, in some cases, financing from Scojo Foundation. This model will reduce headquarters and local office overhead costs, thereby directly focusing support for expansion.

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[1]In addition, 40% of people age 35-40 and 75% of people age 41-50 are presbyopic. These statistics are for people without other refractive errors like myopia, hyperopia and astigmatism.