Erik Olson On Breaking The Cycle Of Poverty Through Purpose Driven Business And Fair Trade

Erik Olson is a dedicated business entrepreneur and the CEO of Dignity Made, a company committed to ethical practices and social impact.

In 2003, he sold his previous business to focus on serving the oppressed, dedicating a decade to humanitarian work. Recognising the exploitation faced by coconut farmers in the Philippines, Erik partnered with his father-in-law to create Dignity Made, a venture aimed at empowering these farmers and promoting fair trade.

Based in St. Paul, Minnesota, Erik lives with his wife, two squirrely kids, and their border collie mutt. His work reflects a deep commitment to justice, dignity, and sustainable business practices.

Erik discusses Why employment-centric social enterprise models effectively address systemic issues such as human trafficking, and Where aspiring changemakers can create sustainable impact by effectively applying business strategies driven by purpose.

Highlights from the interview (listen to the podcast for full details)

[Indio Myles] - To start off, can you please share a bit about your background and what led you to working as a social entrepreneur?

[Erik Olson] - I spent a decade working in humanitarian aid alongside my father-in-law and my wife, witnessing extreme poverty firsthand. It was heartbreaking. I encountered women who had been trafficked—many had been raped, their passports stolen, and forced into the sex industry.

Seeing this level of suffering deeply impacted me, and I felt compelled to work with the oppressed, particularly those living in extreme poverty.

In the Philippines, there are 3.5 million coconut farmers, and half of them survive on less than $2 a day—the equivalent of about $8 a day in the U.S. Their circumstances are dire. Their diets are limited to rice, yams, okra, corn, and eggs.

They have no savings, which means that when a bad harvest or a typhoon strikes, they simply don't eat—something that is particularly devastating for children. Their water sources are often unclean, leading to chronic diarrhea and other health issues, yet they cannot afford medical care or health insurance.

Education is another major challenge, with most children leaving school by seventh grade to help support their families. Many families live in small, one-room, 10 by 10 feet bamboo huts, and the lack of economic opportunities force parents and children to migrate in search of work. This separation makes them vulnerable to trafficking and exploitation, including employer abuse and sexual violence.

Initially, we approached these issues through non-profit initiatives—running an orphanage, high school, and various microeconomic projects focused on clean water and livelihood programs. We believed education was key, but despite these efforts, we weren’t solving the root problems.

One experience changed everything for me. While conducting surveys with local farmers, I asked one man about his biggest hopes and dreams. I expected him to mention his children finishing high school—something only 35% of Filipino children achieve—or perhaps having a cinder block home that could withstand typhoons. Instead, he told me, "My biggest hope is that my debt is not transferred to my children."

This response revealed the depth of predatory lending practices among coconut buyers. These farmers were already struggling in extreme poverty, but the additional burden of debt crushed them, stripping away any hope. Families were being forced to surrender their land to pay off loans, often at exploitative rates.

Others had no choice but to send a parent or child far away for work, where they risked further abuse or trafficking. At that moment, we realised traditional non-profit work alone wasn't enough. Economic problems demand economic solutions.

That realisation led us to establish Dignity Made, an enterprise designed to break this cycle, end what locals call "copra slavery," and provide a sustainable pathway out of poverty.

As the CEO of Dignity Made, can you share more about the business, its purpose, and the impact it's delivering?

We asked ourselves What assets the community already had, rather than coming in and simply handing things out. Our goal was to build sustainable solutions that restored dignity.

The local people had rice, coconuts, and fish, and we identified coconuts as the strongest market opportunity.

That’s what led us to establish a coconut manufacturing facility—right in the heart of the jungle. The area was extremely remote when we arrived. There were only dirt roads, and during the rainy season, you had to cross seven rivers just to reach it.

The need was great, but so was the potential. By building the facility close to the farms, we could buy coconuts directly from the farmers and transform them into world-class, award-winning coconut products.

This approach has created employment for 114 people and established fair trade conditions for 156 farming families, helping them escape the cycle of predatory loans. These farmers are now receiving fair prices for their coconuts, giving them financial security they never had before. But Dignity Made goes beyond just economic empowerment—we’re also investing in holistic community development.

We’ve introduced healthcare initiatives, clean water projects, and mobile banking to help families establish savings accounts. Our programs also focus on education and training, covering topics like health and hygiene, financial literacy, and skills development.

Additionally, we support livelihood projects that improve crop yield and introduce intercropping, providing farmers with additional income streams.

The impact has been profound. In all my years of non-profit work, and in my father-in-law’s decades of experience, we’ve never seen results like this. Adding an economic engine to the traditional impact model has created exponential change—something we never thought possible through aid alone.

It’s truly exciting to witness.

Why are economic solutions and sustainable employment opportunities such powerful enablers for people experiencing systemic disadvantage? How do these initiatives help individuals change their circumstances?

When you have nothing, desperation takes over, and that desperation clouds judgment. Studies on mental health now confirm what we’ve long observed: poverty doesn’t just impact a person’s finances; it affects every aspect of their well-being.

Families experiencing food shortages live in a constant state of anxiety. In the Philippines, 49% of coconut farmers suffer from food insecurity, meaning that for three months each year, they are forced to skip meals.

Their children endure the same hardship, which is particularly painful for parents. Poor nutrition leads to birth defects, underdeveloped brains, and weakened immune systems, trapping families in a cycle of poor health and limited opportunities.

It’s not enough to say, “We’re going to give you a fish so you can eat today.” It’s also not enough to say, “We’ll teach you how to fish,” because most of these farmers already have skills and knowledge. The real problem is they don’t have access to the lake.

Powerful players control the marketplace, acting as middlemen who drive up costs and keep small-scale farmers locked in poverty. Climate change has also exacerbated the issue, further disrupting traditional farming practices.

What Dignity Made is doing is providing that access. These farmers already know how to cultivate coconuts; we’re connecting them directly to the global marketplace. Instead of having 14 layers of middlemen between them and the final buyer, whether that’s in Australia or the U.S. We’re removing those barriers.

We are the direct link between the farmer and the consumer, ensuring farmers receive fair prices for their products. This change is incredibly powerful. With a stable income, families gain security. They can afford school supplies, keeping their children in school. They can diversify their diets, improving their nutrition beyond the four staple vegetables commonly available in the area. The impact multiplies across generations.

But beyond financial stability, what truly transforms lives is dignity. That’s why we named our company Dignity Made. When someone realises their innate worth—that they have meaning and purpose—it shifts their entire outlook.

Instead of thinking, “I am poor, I have nothing, I am desperate,” they start to believe, “I have value. I have something to contribute. I have resources.” That mindset shift is life-changing, not just for individuals but for entire families and communities, empowering them to think differently, live differently, and ultimately, thrive.

How would you recommend entrepreneurs approach the start-up phase of a social enterprise, and how would you recommend they balance profit with purpose?

This is a tough question because launching a business is already difficult, and social enterprises have extra layers of complexity.

Businesses focusing solely on profit can prioritise financial success first and address social or environmental concerns later—sometimes only after they’ve exploited resources or people.

Social enterprises commit to ethical practices from the start, which can make the journey even more challenging. It’s unfair, but that’s the reality.

To any entrepreneur looking to start a social enterprise, I want to be honest—it is unfair. The deck is stacked against you. But don’t let that discourage you. If possible, start small. Keep your day job and work on your venture on the side for as long as you can while building a solid foundation.

Surround yourself with a team because no one can do this alone. There are no lone rangers in social enterprise—it takes a collective effort. One of the most powerful things you can do is cast your vision clearly. When you articulate your mission effectively, you attract people who believe in your work and may be willing to offer help at a reduced cost or even pro bono. This can be a game-changer, particularly in the early stages.

Looking back, I wish we had approached our startup years differently. We burned through a lot of capital because we built a large manufacturing facility and invested in expensive equipment to produce high-quality coconut oil—better than anything else on the market.

That gave us a competitive advantage because we weren’t just selling a great story; we had a product that people could genuinely taste the difference in. But reaching that point required significant startup costs, and we exhausted a lot of financial resources.

In hindsight, I wish we had taken better advantage of grants or even structured part of our work as a nonprofit during the research and development phase. If our R&D had been funded through charitable means, we could have eased the financial strain on the business side.

I’ve never shared this publicly before, but it’s something I think about often when reflecting on our 12-year journey. There are creative ways to use philanthropic capital to build something sustainable.

Some business purists may argue a social enterprise should stand entirely on its own without external support.

the reality is most businesses, even traditional for-profits, benefit from various forms of assistance—whether its city grant programs, tax advantages, or industry incentives.

If these types of resources exist, social enterprises shouldn’t hesitate to leverage them. They can provide the runway needed to overcome early-stage challenges and build a financially sustainable, impact-driven business.

Do you have any thoughts on the future of the social impact movement? Are there any emerging opportunities or challenges that stand out?

I’ve observed a few key trends, but one that stands out is the popularity of the “buy one, give one” model. While well-intentioned, I see it as a charitable approach rather than true social enterprise.

Businesses using this model essentially build a philanthropic arm into their operations, but that doesn’t necessarily mean they are addressing the root causes of systemic issues.

A genuine social enterprise integrates impact into every part of its business. That means looking beyond donations and considering supply chains—are suppliers being treated ethically? Are workers being paid fairly? Are sweatshops being used to produce products that are then given away for free?

These are all critical questions. Again, I don’t want to dismiss the intent behind these initiatives, but I believe we can think more deeply about how to create sustainable, long-term solutions.

Another challenge I see is the tendency to assume solutions before fully understanding the problem. I’ve noticed this particularly in Western cultures, where well-meaning people travel to a developing country, witness poverty, and immediately start brainstorming solutions—often without taking the time to grasp the full context.

My advice to aspiring changemakers is to get proximate to the problem.

If you see a problem and want to solve it, immerse yourself in that community. Live there. Listen. Learn. Make sure you're not just addressing surface-level symptoms but digging into the root causes before launching an initiative that might ultimately be misguided.

Lastly, I would encourage people not to be intimidated by the "all-star entrepreneurs" we often idolise. Some of them truly are extraordinary, but most people making meaningful impact are regular individuals with a strong work ethic, determination, and a clear vision.

You don’t need to be a celebrity entrepreneur to drive change. What you do need is persistence, a compelling mission, and importantly, a supportive community. As I’ve said before, you can’t do it alone. Surround yourself with people who believe in what you’re building, and that will make all the difference.

What inspiring projects or initiatives have you come across recently creating a positive change?

It’s funny you ask because one of the most inspiring initiatives I’ve encountered isn’t new, yet it hasn’t gained widespread recognition. It’s called community health education, and it follows a similar approach to Asset-Based Community Development (ABCD). In some circles, ABCD is well-known, but in others, people have never heard of it.

The core idea is to assess and utilise the assets that already exist within a community to drive sustainable development. Too often, external organisations take a “parachute” approach—dropping into a community, identifying what they think is needed, and handing out resources without considering long-term viability.

Instead, a more effective strategy involves deep engagement, starting with comprehensive surveys. We conducted a baseline survey in a community where most residents were illiterate. Each survey took about an hour and a half per person, but the data we gathered was invaluable in understanding the true challenges people faced.

The next step was presenting our findings to local leaders, ensuring they had ownership and buy-in for any initiatives we proposed. Without their endorsement and leadership, even the best-intended projects can fail to create lasting impact.

This community health education and asset-based development model is incredibly inspiring to me. It’s a highly decentralised, facilitative approach that doesn’t require huge financial investment, yet when implemented thoughtfully, it can be incredibly powerful.

By working with existing strengths rather than imposing external solutions, communities can build resilience and sustainable change from within.

To finish off, are there any books or resources you would recommend for our audience?

The number one book that truly changed my perspective was When Helping Hurts. While it’s written primarily for a Christian audience—so some may choose to skip the first section if it isn’t their cup of tea—it offers incredible insights into how to alleviate poverty without unintentionally causing harm to the people you’re trying to help.

The book highlights the unintended consequences of traditional aid and charity, showing how well-meaning efforts can sometimes do more damage than good. More importantly, it provides practical guidance on how to approach poverty alleviation in a way that fosters real, lasting change.

I will say, it challenges a lot of the simple solutions we often default to. It forces you to think more critically, which can make things feel more complex. But ultimately, that deeper understanding is what leads to meaningful, generational impact. I highly recommend it for anyone looking to create sustainable change in the world.