About us > History
The Origins
In order to best understand the approach behind our work and creation of the entities that form the New Development Solutions Group (NDSG), an understanding of the history and background may be helpful. NDSG co-founders Greg Van Kirk (recognized as an Ashoka Fellow in 2008) and George Glickley were Peace Corps Volunteers in Guatemala from 2001 to 2003. While in the Peace Corps Greg recognized that tourists were regularly visiting the Guatemalan town of Nebaj where he was working, but were leaving quickly without spending any money in the local economy due to a lack of infrastructure. Identifying a problem, he received special dispensation from the Peace Corps to invest some of his own funds that he had saved working in investment banking to start several tourism businesses including a restaurant, a Spanish language school, a hiking and trekking service, and an artisan store with local residents. This was the start of the Turismo Ixil (TIX) businesses. The idea was to help the local economy by creating local jobs and to motivate tourists to stay an extra day or two in Nebaj spending money on goods and services. The long term strategic vision was to have local entrepreneurs earn ownership of the ventures through sweat equity and take over when financial and administrative self-sustainability was achieved. This “hand off” successfully took place in early 2004 and these ventures continue to function profitably to this day. In addition, Greg was teaching part time in a local high school and recognized the almost complete lack of resources. He also noted that high schoolers were lacking many of the fundamental skills they would need to have an opportunity for future success. As a solution to this problem, with the help of other Peace Corps volunteers in the area and funding from the TIX businesses, he started the Centro Explorativo (CentroEx), a local library, computer literacy and after-school center accessible to all local residents at no cost.
The MicroConsignment Model (NDSG’s keystone innovation) first emerged when Greg donated profits of these tourism businesses to a wood-burning stove project. This donation supplied a handful of stoves to an equal number of families in a local village. Like millions of Guatemalans, these families had always cooked campfire-style on their dirt floors. Cooking this way had long been recognized as extremely energy inefficient and harmful to the health of family members, particularly women and children. Relief agencies had determined that the construction of inexpensive, locally manufactured, concrete stoves could immediately and dramatically reduce energy costs and improve the health and safety of family members. Greg realized, however, that merely donating stoves severely limited the capacity for distribution. Once the relief money was expended, nobody else could get a stove. Greg concluded that many more people could obtain these stoves if their distribution was built on a sustainable economy. As a response to this ongoing challenge he developed what would become the MicroConsignment Model (MCM). Stoves would be locally manufactured, materials provided to local entrepreneurs on consignment and marketed and sold to low income families in villages on an interest-free basis. The money saved in energy costs allowed the stoves to essentially pay for themselves as families made payments over six months. The health, economic and environmental benefits would go on for years. This model would not only provide an essential, high-quality product at an affordable cost to villagers but would provide new income-generating opportunities to local individuals as entrepreneurs. Soon after this initial iteration of the model was launched, George joined Greg to further develop and expand this initiative amongst others.
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The Creation of Community Enterprise Solutions
Upon finishing their Peace Corps responsibilities, Greg and George stayed in Guatemala and formed NDS Consulting as a means to provide consulting services to USAID, Chemonics, Soros Foundation and the like. Development professionals working in Guatemala had seen their success in Nebaj and were anxious to contract their services to support their own projects. In March of 2004, they were contracted by Scojo Foundation (now VisionSpring) to work in El Salvador to help them find an effective way to distribute reading glasses to low income villagers. It is estimated that over 90 percent of people over 40 years old will need near-vision reading glasses to see up close. VisionSpring was utilizing a micro-credit model at the time to provide local women with a means to distribute the glasses but it wasn’t working effectively. Greg and George noted that micro-credit is very effective for people who already have established businesses and purchase raw materials from a local distributor to meet unmet demand. However, selling reading glasses, much the same as selling wood burning stoves, requires a different approach. Due to the fact that awareness needs to be created, a high quality service is the driver, there are no local distributors, training is essential and the perceived and real financial risk for potential entrepreneurs is very high, they concluded that micro-credit was a suboptimal model to achieve VisionSpring’s desired outcomes. Micro-credit is generally neutral regarding what an entrepreneur's business buys and sells. Any effort to deliver new, “medium and high intervention” products and services to vulnerable villagers must first look at the villager’s needs and then inductively create an entrepreneurial structure that meets those needs. Greg and George concluded that the MCM could effectively mitigate the challenges that VisionSpring was confronting utilizing micro-credit. As a consequence, after in-depth analysis and testing, VisionSpring decided to adopt the MCM as its implementation mechanism. For Greg and George this was the “Aha!” moment. They realized that the MCM could work as 
a unique means to provide villagers with access to potentially myriad products and services that addressed health, economic, environmental and educational needs. It was this realization that led to them to establish the US non profit 501 (c) (3) Community Enterprise Solutions (CE Solutions) in 2004 specifically as the engine to test, develop, implement and expand the MCM in Guatemala and ideally other countries in the future. CE Solutions was also formed to support the TIX businesses and CentroEx’s growth.
The Establishment of a Local Social Enterprise: Soluciones Comunitarias
With regards to the MCM, their concept was to devise a way to create national scale and local self-sustainability. The key was to train a growing number of primarily women entrepreneurs who could offer a growing mix of essential products and services in an increasing number of remote villagers. And as in the case of the tourism businesses, the concept was to create a local social enterprise, owned and run by the leaders that emerged through their entrepreneurial work, which could achieve financial and administrative self-sustainability. This led to the idea of establishing a Guatemalan owned social enterprise called Soluciones Comunitarias (SolCom) in 2006.
Greg and George continued to consult for VisionSpring (amongst others) to help them expand their reach. This included running the El Salvadoran operations and facilitating expansion of VisionSpring’s MCM reading glasses initiatives in Mexico, Paraguay and Nicaragua.
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The Emergence of Social Entrepreneur Corps and Ayudasoft
The successful growth of the MCM in Guatemala through CE Solutions support led to a typical challenge associated with expansion: the need for additional human and financial capital. During the first phase of this development, Greg and George depended solely upon donor contributions to provide the necessary financial capital. They did not, however, want successful growth to be 100% dependent upon oftentimes sporadic donations. As sustainability in the field was a primary driver and was being slowly achieved through the income that SolCom earned on product sales, they additionally wanted to create a sustainable mechanism from an overall organizational perspective. They solved this problem by establishing Social Entrepreneur Corps in 2005 as a sister organization to CE Solutions to offer opportunities for students and recent graduates to volunteer in Guatemala (and now Ecuador and Nicaragua) supporting the entrepreneurs and the MCM’s continuous innovations and growth. They had learned through working with recently graduated volunteers that fairly inexperienced individuals from diverse backgrounds could make a measurable impact in a short period of time. In addition, these volunteers had conveyed to them that they had gotten more out of their experience working within the model than they had in other more traditional study abroad experiences in which they had participated. Creating a mechanism for students to volunteer and contribute thus offered an elegant solution to the financial and human resource constraints that Greg and George had been confronting. 
Training and supporting students in many regards as apprentices, who in turn supported and funded the MCM work, was a much more efficient and effective use of time than bifurcating work between fundraising and field implementation.
The final entity under the NDSG umbrella is Ayudasoft. As with all of the initiatives started by the NDSG team, Ayudasoft was started in response to an ongoing challenge. In 2006 John-Michael Maas, a media professional, visited Guatemala to film CE Solutions. While in country Greg, George and John Michael began discussing how there was a lack of available software to help development organizations design their program and create impact models with media components. They surveyed the market and, not finding what they believed to be an appropriate software package, decided to design one themselves. This led to the formation of Ayudasoft. Ayudasoft has to date designed an online software solution for the United Way of Morris County and is working to achieve greater scale.
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The MicroConsignment Model's Impact
As of September 2009, through the combined efforts of the CE Solutions and Social Entrepreneur Corps, SolCom has trained over 200 local entrepreneurs who have executed approximately 1,800 village campaigns and sold over 35,000 products. The product offering has expanded to include not only wood burning stoves and reading/near vision glasses but as well UV protection eyeglasses (January 2005), eye drops (January 2006), water purification buckets (December 2008), vegetable seeds (January 2008), energy efficient light bulbs (January 2008), and solar lamps (January 2010). In addition, a new entrepreneurial channel has been created whereby local community organizations are provided with product kiosks and training in order to serve their constituents in new ways and earn extra income in the process.
By our calculations more than $1,000,000 of direct economic and immeasurable health and environmental impact have been created through the MCM. Gross revenues from the sales of the products total approximately $330,000, and MCM entrepreneurs have earned profits ofapproximately $60,000. Using the
official Guatemalan daily minimum wage of $6.75—though few rural people, especially women, can earn anything close to this—these earnings equate to approximately 8,888 days of work. At present there are 65 MCM women entrepreneurs and 10 socios comunitarios. SolCom now earns revenues of approximately $6,200 per month and has 11 staff members, who earn a combined $2,400 per month.
Social Entrepreneur Corps has been fortunate to establish strategic relationships with the University of Notre Dame, Duke University, the University of Connecticut, Columbia University, The College of William and Mary, Miami University (Ohio) and Franklin and Marshall.
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Looking Forward
Our work continues in Guatemala and Ecuador, where we began our MCM initative in January of 2009 through CE Solutions and Social Entrepreneur Corps. In January of 2010 we expanded into Nicaragua, and aim to mimic the successful Guatemalan experience in a growing number of countries in future years. We have created Invennovations.com to capture and disseminate the inventions and innovations being created and implemented around the world to serve vulnerable populations. It is an effort to support those working in the field in developing countries as they seek to facilitate positive impact at the base of the pyramid.
We are offering the MCM solution to
organizations across the globe through our online guide in development,
www.microconsignment.com, and through direct collaboration. VisionSpring
continues to use the model. ToughStuff is using it as an implementation mechanism. Howard Weinstein of Solar Ear sees it as a mechanism to solve hearing problems throughout the world. Several Ashoka Fellows in Latin America are interested in using the MCM. All this shows that it works and it is gaining traction. Our
greatest challenge now is how to grow most effectively while supporting adoption
of the model.
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Where We Work
Click on the flags below for more information on the countries where we work.
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