2. Yet Another New Business Goal for Pedro Espinoza

Lima, Peru. This past January, Pedro Espinoza Brinkmann, a Peruvian artist and designer embarked on an unexpected business in the construction industry upon a close friend’s persuasion.

His close friend, and now partner, Alfredo Chang, talked him into investing in the construction of an 8-floor building in a 400-meters-squared terrain located in the neighborhood of San Borja. With this investment in mind, they have formed the company Ocho Rios, named after the Amazonian location in which they first discussed their business, along with four other partners.

“I know nothing about the construction world”, confessed Espinoza. “When Alfredo first proposed the idea to me I immediately abstained from it. First of all, I didn’t have the money and, moreover, I would be going into this business with my eyes closed.”

Espinoza graduated from The Catholic University of Lima with a degree in economics and a masters in business administration, yet it was not until years later that he started pursuing his passion for art. In 2001 he formed the small company Arte Qollana, in which he works with various different artists in the manufacturing of authentic Peruvian art pieces. He felt that the shift from economics to art would be the first and last dramatic change in his life. Nevertheless, Chang was determined to make him his partner in his newly envisioned business.

“I offered to lend him the money for this investment. I knew Pedro had no experience in construction, but he knows a thing or two about managing a company”, Chang said.

Espinoza trusted Chang’s instincts. “I could not reject his offer. In contrast to the US, Peru’s economy has not been severely affected by the global economic crisis. Lima has recently shown a significant growth in the construction industry”, he says.

According to the UN’s Human Development Report of 2009, Peru is an emerging economy where businesses are flourishing. This is reflected on its steady decrease in poverty levels since 2004.

The construction of Ocho Rios’ first building is programmed to begin in approximately thirty to forty days after the completion of all their legal paperwork with the contractors. The building, designed for a middle-class population, will have sixteen apartments and two underground parking levels. The company plans to build not only more homes in the future, but also offices among other construction projects. The partners surely have high expectations for their business.