This article describes the interesting story of Jesse Levin who went to Puerto Rico after the Hurricane Maria raked the State. I think, it draws a multifaceted picture of him, which illustrates that the boundaries between social entrepreneurs, policy entrepreneurs and so forth are, if actually there, at best vague and that the different concepts may often overlap. The article enforces, however, various points we made during discussions we had in our course this semester. It shows, for example, how important it is to get feedback from your potential customers as soon as possible. For example, the fact that Jesse, by actually being at the location of the disaster and by talking with he affected people, was able to identify not lack of food but lack of connectivity as the real issue why people were not able to buy food, illustrates well the relevance of the lean start-up approach even in the context of social entrepreneurship. It also demonstrates, as indicated by the movie “Poverty, Inc.,” that fostering local entrepreneurship might be one, if not the, most effective form of both foreign aid and disaster relief.
What a great article! I really enjoyed learning about Jesse Levin and his approach to aiding a country that went through such a devastating storm. Like you stated, it was vital for Jesse to get to know his customers to discover that their main issue was not being able to use electronic food stamps to make food purchases. Some creativity and $33,000 later, and Jesse was able to set up a satellite network which quickly handled over $3 million in electronic food stamp transactions. It was shocking to hear that over 40% of the population relies on these electronic stamps for their food supply. Thanks to entrepreneurs like Jesse, future natural disaster response groups can now build upon his model to increase response times should a disaster like this occur again. Thanks for sharing this article, Sandro!
Another interesting thing about Puerto Rico is that (up until the hurricane) several businesses were moving to there due to favorable tax treatment. Puerto Rico’s status as a territory means that its residents do not have to pay federal income tax. This makes it an attractive location for entrepreneurs, as they can enjoy the protections of being a U.S. company while avoiding large tax bills. This is extremely beneficial to Puerto Rico, because these companies both invest in the island and supply well paying jobs. I’m unaware of how the hurricane has effected this trend, but it seems like rebuilding the infrastructure is the most pressing issue. Spreading awareness about the favorable business climate in Puerto Rico might encourage companies to invest within the island.
Great article, Sandro. Here is an article in a similar vein: https://www.forbes.com/sites/karenangel/2018/04/03/venture-capital-alliance-invests-45-million-in-puerto-rico-to-build-out-entrepreneurial-ecosystem/#34bc65fa5953. It details how a group called the Community Development Venture Capital Alliance is taking funds from investors such as the Ford Foundation and Goldman Sachs and is distributing the money into low-income areas in order to boost local economies. Recently, the Alliance launched its first fund in Puerto Rico, called the Puerto Rico Fund for Growth. One key component of the investments, which relates to Poverty, Inc., is that the group “invest[s] in funds that in turn invest in businesses that operate or provide employment in Puerto Rico.” Rather than simply donate funds to any random cause, the Alliance makes sure to invest in causes that will “build out the entrepreneurial finance ecosystem in Puerto Rico.”