Hope is defined as an emotion, not a fashion statement, but one University of Texas at Austin alumnus transformed hope into something that can actually be worn.

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Story by Mia Uhunmwuangho

Photo courtesy of Esperos

 

Oliver Shuttlesworth is the founder and CEO of Esperos, a backpack company based in Austin that derives its name from the Spanish verb ‘esperar’ which means ‘to hope.’ The company operates on a socially conscious business model, where 10 percent of the profit made from each backpack goes toward funding a child’s education in a developing country.

 

Forbes Magazine defines socially conscious businesses as companies that embrace social responsibilities and are not solely focused on maximizing profits. According to a 2014 study by Nielson, a business research company, socially conscious businesses are on the rise. The study found 42 percent of Americans purchased goods from a company committed to a positive social or environmental impact.

 

UT advertising and public relations professor Lucy Atkinson said that socially conscious businesses are a relatively new phenomenon.

 

“Businesses donate to charities all the time,” Atkinson said. “But the idea of social consciousness being built into the actual core of the company is happening now because consumers feel like businesses should have a greater responsibility to the world. In turn, these conscious consumers are creating their own businesses. ”

 

Shuttlesworth said he created his company in 2011 after a life-changing trip to the Dominican Republic where he witnessed the lack of access to education.

 

“I was able to talk to a number of families while I was down there,” Shuttlesworth said. “I kept hearing a similar refrain, which was ‘we want a better future for our kids, we want them to go to school and have things that we don’t have.’”

 

According to a 2013 study by the United Nations International Children’s Emergency Fund, over 130,000 primary-school aged children in the Dominican Republic were unable to attend school because of monetary issues. UNICEF estimates that in some parts of the world, $20 could fund a child’s education for an entire year.

 

“It was sort of mind blowing to me that you could send a kid to school for $20 a year, yet there are millions of kids in the world who don’t have access to education,” Shuttlesworth said.

 

Esperos became Shuttlesworth’s solution to the problem. With no prior experience in design, he created a line of simplistic canvas-style bags meant for any lifestyle.

 

“It made sense to me to sell backpacks,” Shuttlesworth said. “Backpacks and education go hand in hand.”

 

Esperos still operates on a for-profit business model, keeping a certain amount of money made from sales. The social aspect comes into play when the company donates 10 percent of its quarterly profits to the Nobelity Project, a non-profit organization in Austin dedicated to funding the educational needs of children in the developing world.

 

Shuttlesworth said a key challenge in running Esperos is generating enough profit to keep the business sustainable.

 

“When the business first started out, it was running entirely on my personal savings,” Shuttlesworth said. “We’ve grown since then and our profits need to keep up with our expansion.”

 

Sales Director Autum Dershimer said that the company makes a profit by maintaining a high price point. The average price of a backpack at Esperos is $80.

 

“Eighty dollars is a lot to pay for a backpack, but we can’t give unless we sell,” Dershimer said.

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Shuttlesworth chose not to disclose the amount of money the company made and donated in its last quarter, but did say that Esperos’ business model and price point effectively sustain the company. Customers continue to purchase backpacks from Esperos, despite the high prices.

 

“I think that my money is well spent at Esperos,” said UT senior Gentry Railsback. “It’s cool to be able to say that every time I wear my backpack, I’m contributing to a cause that effects the world.”

 

Atkinson said that socially conscious businesses like Esperos are popular because they appeal to the consumer’s emotions.

 

“I think this is the generation that is more willing to express their social concerns through consumption,” Atkinson said. “From the consumer perspective, they are willing to pay more to own a quality product, and to be able to broadcast to the world that they’re a concerned person.”

 

Atkinson said that high prices pose a problem for companies that operate on this business model because only certain people can afford the products.

 

“It’s a very niche market,” Atkinson said. “I think that is one of the problems when it comes to viewing the marketplace as a solution to social issues. What you buy won’t fix these larger issues because not all of us can afford to do that.”

 

Shuttlesworth remains hopeful that Esperos will bring real change to developing countries and hopes to expand the company by creating a new line of backpacks to release next year. At some point, he wants Esperos to become a full lifestyle brand that sells more than backpacks. But regardless of expansion, Shuttlesworth said the idea that created Esperos will always be the same.

 

“We want the message of Esperos to transcend the bags,” Shuttlesworth said. “Every time you carry one of our bags, you are carrying hope.”