Rural Entrepreneurship in Wintergreen Oil

Abstract

Wintergreen is a wild herb that grows in the hills of Nepal that can be used for extracting oil which has several medicinal values. It is being sold into premium-value markets in the USA by doTERRA Inc. doTERRA has a co-impact sourcing partnership with the NGO Choice Humanitarian, scouts the local farmers or entrepreneurs and helps them set up the production business. The difference between the price of the final product and the price that local entrepreneurs get is very high. Despite this, the venture has created a new opportunity for local farmers to make large profit as the cost of production is low. However, the business itself has several challenges from scalability and sustainability aspects. Further, the price is set by the single buyer and the market has monopsonist characteristics; hence, the producer has less bargaining power. Despite these challenges, creating a better business environment enables the export of essential oil and that can be a potential foreign currency source for country like Nepal.