Costa Rica Entomological Supply (CRES) was founded in 1984 by Joris Brinckerhoff, a former Peace Corps volunteer and his wife, Maria Sabido. While hitchhiking, Joris had a chance encounter with a butterfly enthusiast, Jim, who informed him about the butterfly exhibits that were being created in England.

There were several factors that suggested that butterfly farming in Costa Rica might be successful. The government at that time was promoting the development of “non-traditional exports” also Costa Rica is and was renowned for its biodiversity and far-sighted efforts in conservation. Over a quarter of the country had been protected in national parks. Furthermore, butterfly farming would seem to promise many social advantages for rural people. Farming butterflies would require the planting of host plants and flowers, allowing families to generate incomes without causing ecological damage. The start-up investment seemed to be modest. Inspired by E.F. Schumacher’s book, Small is Beautiful, Joris and Maria gathered their savings and embarked on a career as butterfly farmers. With the help of their friend Rubén Canet, they spent two years trying to identify host plants and develop breeding methodologies. A law would have to be changed to allow the export of live butterflies — a scenario that had not been contemplated.

Today, the creation of CRES is a leading business school case study for a course on New Business Ventures from INCAE. It’s a challenging case! There were no butterfly farms in Latin America to emulate. The founders had no experience, no knowledge about butterflies, entomology or biology. There wasn’t any literature on butterfly farming. The laws at the time prohibited the export of butterfly pupae. The founders didn’t qualify for legal residency. They had no startup capital beyond Joris’ Peace Corps readjustment allowance. The airlines charged hundreds of dollars in freight and refused to transport “live animals.” The market for live butterflies lasted only 6 months of the year and it would take a year to prepare for the first export. Without sufficient money to even rent a modest house, the case asks the students: if they were the entrepreneur, would they proceed? The question is perplexing because no matter how the situation is analyzed, there is no conceivable way that the project could survive.

In 2014 CRES celebrated its 30th anniversary and remains one of the main butterfly suppliers in the world. Today, butterfly farming for exports, exhibits and souvenirs has become a significant industry, providing employment for hundreds of families.