Social enterprises are generally small companies that make a profit by engaging in business activities ranging from production to sales, while at the same time providing people, especially those in need, with services or jobs. Their aim is to improve the quality of life for both their employees and for their host communities.

In Korea, many social enterprises operate nationwide, such as ones that collect recyclable material such as old clothes or furniture and then re-sells them on the market at a lower price.

Daegu is home to Jajacnanum (자작나눔), a store along Gongpyeong-ro Street in Jung-gu District. Jajacnanum is now the city’s 11th social enterprise, licensed in 2010 by the Ministry of Employment and Labor. Through its business, the company supports a good cause: its offers jobs to disadvantaged women. Currently with four female employees, Jajacnanum’s main source of income comes from the sale of more than 30 natural products, including soaps, shampoos and air fresheners.

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Store 36.5, Jajacnanum’s new retail outlet along Gongpyeong-ro Street in Daegu and which opened in August, sells a range of natural products produced by the company itself.

The president of Jajacnanum, Youk Jeong-mi, sticks to one rule: never use preservatives during the manufacturing process. “That’s a competitive edge we have over others. As we avoid preservatives when we make our cosmetics, the products might go moldy if they remain untouched for a long time.”

In August, Jajacnanum opened its first retail outlet, Store 36.5. It is the first retail outlet in the city dedicated to a social enterprise. On the second floor of the two-story building is the factory that churns out Jajacnanum products, but on the first floor sits Store 36.5, selling Jajacnanum products and also beverages, allowing visitors to shop over a sip of coffee or tea.

On Nov. 20, one customer browsing the products on display while sipping a cup of coffee said, “I feel sort of healthier and cleaner whenever I come here.”

“That feeling is exactly what we have strived so hard to give to our customers,” said Youk. She continued, saying that, “We aim to remain sustainable by making profits from sales, all while undertaking the cause of offering gainful employment to women facing difficult financial situations.”

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Jajacnamun’s main products include shampoos and skincare products, all made from natural ingredients.

Youk has been at the helm of Jajacnanum since its launch in 2010. Majoring in electronic engineering at Kyungpook National University, she served as director of the Daegu Women’s Association in 2009, an organization dedicated to the human rights of women. Korea.net sat down with the president to hear more about her dedication to the Jajacnanum business.

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Youk Jeong-mi, president of the Daegu-based social enterprise Jajacnanum, poses in front of the company’s new retail outlet, Store 36.5, where a range of Jajacnanum products are offered up for sale.

– Tell us what made you decide to start this business.

The Jajacnanum project started with the goal of helping women, especially those from underprivileged backgrounds, to find a job and to become self-sufficient. We put our focus on allowing those in need to learn skills, such as woodworking and sewing. As a woman myself, I thought that it would be an important thing to do to make them stand on their own feet financially. That’s how I decided to start this business, to help such needy women.

I educated myself about what social enterprises really were, reading numerous related books. I put together a thorough definition of what social enterprises were supposed to do. When the business just kicked off, we had to cram ourselves into a tiny space at first. We started under such extremely poor circumstances.

– You must have had difficulties in meeting customer demand with only three employees.

We all chipped in and scrapped together about KRW 18 million as starting capital. Under such financial circumstances, we managed to record sales of KRW 150 million in 2014. Each individual working here is an excellent multitasker. They’re like jacks of all trades. We’re now on the threshold of making a leap forward in our business potential. We still have a long way to go, though.

– Tell us more about some of your flagship products ?

Our range of natural Jajacnanum products still has a few weak points, particularly in terms of design, as products manufactured by small- and mid-sized companies tend to have. However, as far as quality is concerned, our products are by far the best out there.

The fact that the natural products market has kept thriving over recent years shows that a growing number of customers are turning to natural ingredient-based cosmetics, as some of the established brands are, honestly, dysfunctional. More and more people now look for healthy, clean natural makeup. In that respect, we struggle to make our products as excellent as possible, putting quality first.

Our flagship item is shampoo. We manufacture shampoos in the traditional manner by using vegetable oils. Compared to other shampoo brands on the market, ours might make your hair feel less soft, but that is better for both your hair and your scalp. They also help prevent hair loss. Many customers of ours also come and look for one of our skincare lines: toners, lotions and moisturizing creams. We never add preservatives. Not using preservatives means that we do this business at great sacrifice, as cosmetics free of preservatives have a limited shelf life. We make our products for our customers. Jajacnanum itself means, “Make it yourself (자작, 自作) and share with others.” We aim to make good products for those who use them.

– Despite financial difficulties, you have continued in this business. What’s your driving force?

Before starting this business, I used to run a mathematics hagwon, or cram school. At that time, I just wanted to free myself from a situation where I was making money in the private education industry. Though financially stricken, I leaned more toward the Jajacnanum project and decided to close the school, which was then my bread-and-butter job.

I always thought that somebody should take up this task. I believe that this is the way to go, to be part of an effort to solidify the foundation and to help women stand on their own two feet. I dared to get involved in this work, full of confidence. Once I set foot in this business, I’ve run it non-stop to this day. It’s like my body flows with water and the water brought me to where I am today.

– Why did you open the retail outlet Store 36.5?

My dream was to own a factory that could manufacture items and then a store that could store and sell the goods. The dream has now come true with the opening of Store 36.5. My next goal is to get more machines in the factory over the next two years, diversifying our production lines and even expanding the business beyond the domestic market.

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Jajacnanum produces a range of soaps and cosmetics made from natural ingredients such as Houttuynia cordata, green tea and mulberry leaves.

– What kind of world do you dream of? I mean, you’re practicing the spirit of sharing through Jajacnanum.

My life motto is to seek happiness for myself and in what I do. If you’re a person who makes products, you must do that while thinking of those who will use the products. There’s nothing special about social enterprises themselves. Other ordinary companies out there should do businesses as social enterprises do. No difference.

Running this company, I feel alive. Doing this job, I always keep in mind what’s the most important thing in our lives. Working for this good cause means a lot in itself. I am really happy to be part of it.

By Sohn JiAe
Korea.net Staff Writer
Photos: Sohn JiAe
jiae5853@korea.kr