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Three Pillar Approach


Spes Nova's proprietary model to development aims to alleviate poverty in some of the poorest regions of
the world by offering local artisans access to capital, robust markets, and insurance products:
 
Micro-Credit
 
Academic institutions in the Spes Nova network analyze market trends and order products from artisans,
which creates the immediate need for pre-production funding (working capital, funds to pay raw materials,
and additional labor, among others). In general, local artisans rely on shark lenders, pawn loan providers,
or microfinance institutions (MFIs) that charge them high interest rates (typically between 20 to 40% per
year). To help artisans reduce these financial costs, Spes Nova utilizes its e-commerce site to allow
consumers to sponsor small pre-production loans by selecting local artisans from the Spes Nova
database. Universities in the network can also use their rolling funds to order artisan merchandise to sell.
 
Market Development
 
Many of the artisans and craftsmen that achieve early success quickly outgrow the ability of their local
markets to absorb their products. Spes Nova, through its network of academic institutions around the
globe, provides a platform for these producers to access the global marketplace. Students and faculty at
these institutions utilize market-research tools to help local artisans with product design, quality control,
cost analysis, pricing, and environmentally friendly production. Consequently, artisans are then equipped
with the knowledge to make the best adaptations to their businesses in order to market on a global scale.
 
Insurance
 
The poorest regions of the world are not only some of the most vulnerable to catastrophic events but also
the least protected by insurance. The working poor are exposed to natural perils (such as hurricanes,
floods and earthquakes) that can simultaneously wipe out all their assets (housing, clothing and personal
possessions) and their means for making a living. Spes Nova is preparing low-cost insurance products to
protect against these ruinous outcomes.
 
These three approaches are mutually supportive, and when put together, provide a sustainable, inclusive
path towards prosperity for the working poor.
 
We invite you to join in our efforts by providing loans or shopping our artisans' products!!