Acumen Entrepreneurship Case Study
Autor: Tono24m • July 8, 2019 • Case Study • 486 Words (2 Pages) • 1,298 Views
Entrepreneurship — Acumen Case Study
1. If you were Brian Trelstad, would you recommend to the investment committee that Acumen invest in Ecotact, Meridian, both, or none? Use the Capabilities Assessment Matrix (Exhibit 9) as the foundation for your analysis. You may also use other criteria that you think are pertinent.
Acumen fund is a company who invest in companies with a potential for growth and with a potential return of investmenet. However it’s a non-profit company they are also involved in providing entrepreneurial solutions. For their investings, Acumen studies the potential for social impact, the potential for financial sustainability, the scale potential and the management capacity.
Ecotact provide clean and accessible toilet and shower facilities in around Nairobi // Focus in BoP as is given sanitary access to low-income urban area // can not forecast if will be a demand // Wants to grow // The entrepeneur doesn’t have management experience is an architect
Meridian, aimed to become the market leader in private health care by establishing a chain of low-cost, high-quality outpatient clinics across the country // Doesn’t have helping the BoP in their mission // Has proben hight returns and there is another investor // Wants to greo with 2 more hospitals // The management has been proven as it’s already operated.
In my opinion, Acumen should invest in in the Meridian and not in the Ecotact project. The Ecotact project has some gaps in the financials. Kenya’s hygenic conditions are very poor and the people are used to live like that, it’s difficult to know if the Kenyan people will pay for this kind of services. At the same time, seems that the entrepeneur has lacks of management capacity.
On the other hand, the Meridian project has financial viability and management capacity. The only problem might be it’s mission is not yet directly focus on the social aspect. Anyway this can be changed in the future.It’s not easy to to address this market since the beginning in the health insustry and be financially sustainable.
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