Three Pepperdine seniors are tackling insolvency abroad by helping impoverished entrepreneurs in Argentina start their own businesses and better their quality of life. David Tari Dillon Desai and Rob Stone created One for One International LLC to promote sustainable poverty reduction programs through microfinance loans.
One for One uses the proceeds it raises from selling purified water to offer entrepreneurs microfinance loans without charging interest or requiring immediate repayment. Banks typically overlook poor entrepreneurs due to their lack of assets or collateral and risk of default.
Though the organization has existed since April 2008 it made its campus debut Wednesday with the arrival of its first shipment of water. About 100 students stopped by while One for One was set up near the rock outside the Tyler Campus Center. By selling two cases of water and various hand-made Argentinian goods they raised approximately $150 for Adulam a small community about an hour and a half outside of Buenos Aires.
Students at the event responded positively to One for One’s mission.
“[One for One] is such a great idea; I wish people could have thought of this sooner said Anna Shea, a senior who volunteered in Adulam with Project Serve three years ago. I’m so proud of [Tari Desai and Stone] for pioneering it. I think it’s going to go far and I’m fortunate to be able to see exactly what it’s going toward.”
Other students who have followed One for One’s progress said they were amazed by its achievements.
“I lived with Dillon this summer and saw him working his tail off all summer with different concepts and designs so to see it come to this is really cool said senior and SGA President Hunter Stanfield. A business that has a full profit model that actually gives back something tangible is really awesome especially when students at Pepperdine are starting it.”
Tari and Stone said they were inspired to begin One for One while studying abroad in Argentina during the 2006 to 2007 school year.
“I love the idea of microfinance because instead of giving charity to people it empowers them because they’re doing it on their own Stone said. It proves that you can lend to people who have no collateral … and compared to people in the United States they actually pay back [their loans] more.”
Though not technically structured as a nonprofit organization One for One sells each bottle for $1.25 and donates roughly 50 cents per bottle sold covering overhead but not generating any profit. According to Desai they are still considered an LLC because they have the ability to make profits while tax codes prohibit nonprofits from making gross margins.
Since One for One’s creation it has given $3100 to Argentina raised through donations and Maté sales on campus. These loans helped start 20 businesses in the village of Adulam with a default rate of zero.
“We look at the profits from this and say it’s pretty miniscule but taking it to Argentina where the exchange rate is one to three-and-a-half it goes a lot further Desai said.
However, Desai said not to confuse One for One and its vision with the Ethos water stocked in the local Starbucks.
People compare us to Ethos and I cringe when I hear that because we’re really nothing like Ethos Desai said. If we had one word to describe us it would be ‘pathos’ because we’re so much more about that emotion.”
According to Desai it costs Starbucks roughly 30 cents to produce and distribute Ethos yet it is sold for $1.85 per bottle. Of the remaining $1.50 in profit 5 cents is given to their cause of helping children around the world get clean water.
“It’s a joke. I hate the fact that people call [Ethos] a socially conscious business because that’s what we’ve built with [One for One] Desai said. Yeah we want people to drink our product but we want to inspire a new kind of business.”
On every bottle distributed by One for One there is a code to enter on its Web site oneforoneinternational.com. By entering in the code the Web site displays where the money used to purchase that bottle went who it supported and how to contact the people the buyer helped. This personal feature of One for One’s product sets it apart from Ethos.
“I want the people who buy our products to feel like they’ve helped Tari said. I want them to feel like a part of the process and to see the faces of those they’ve helped all over the world.”
According to Desai the three are working with local universities including Azusa Pacific and Point Loma to collaborate for events applicable to their cause. They also met with the founders of TOMS Shoes about a possible partnership and said they received good feedback from the individual in charge of the marketing campaign for Arrowhead.
While they cannot sell their water at university vendors such as the Waves Café because of Sodexo’s exclusive contract with Coca-Cola they can sell water at campus events. Additionally they partnered with the Student Programming Board and hope to host a volleyball tournament in April where they can sell their product and advocate their mission.
One for One hopes to expand from Adulam to other areas of Argentina and to the Dominican Republic East Africa Mexico and any place there is a need. Tari said he hopes to seize opportunities for One for One in East Africa while studying in the program there this summer much his experience in Argentina.
“If this takes off … we’d be able to generate a profit and give more back Tari said. That’s why we call it One for One International – we want to be all over [the world].”