“Welcome to Shacky! We’re doing crowd funding for our first tiny house in Tarndwarncoort.” A man in front of a tiny-wheeled house made of corrugated iron and timber interior greeted me with a wide smile. “My name is Joep Pennartz. Feel free to take a look inside this tiny house.”
It was a sunny day at the University of Melbourne when I first met Pennartz. He was busy greeting a bunch of visitors who walked eagerly to see what was inside the tiny little house. He kept a genuine smile, with his eyebrows raised and eyes squinted, patiently answering questions from everyone he met. I’ve always been fascinated with the beauty of being an entrepreneur – meeting people, exploring opportunities, doing multi-roles, tirelessly working day and night to get goals done and make a whole plan happen. After the flocks left, I seized my chance to talk to him.
“We’ve just started in the last two months,” Pennartz said, “and so far I have done every thing by myself – getting suppliers, recruiting farmers and reaching potential markets. Recently I am getting people to donate to Shacky through pozible.com, an Australian crowd funding site. Of course, with endless support from my girlfriend,” Pennartz said with a smile.
Pennartz is a social entrepreneur who graduated from the University of Melbourne Business School last January and started his web-based business with a big mission – to help farmers raise alternative income, while at the same time bridging the gap between rural and urban areas. With a similar concept to its main competitor, Airbnb, Pennartz believes Shacky’s value has more beyond economic benefits.
“Many people living in the city feel the needs to escape their busy life and connect with nature and landscapes that are available in the Australian countryside,” said Pennartz. “On the other hand, I found that farmers often suffer from the inverse disconnect; they feel increasingly detached from the crowded metropolis. This feeling of isolation has been worsened by financial stress from changing weather conditions and environmental change.”
CONNECTING URBAN AND RURAL AREAS
In its recent research, the Australian Bureau of Statistics (ABS) has found there are fewer young, educated people each year in rural areas compared to the city, due to financial reason and a feeling of detachment from urban areas that leads to high unemployment. By bringing urban customers to farms, Shacky hopes that personal connections between both worlds can be built. “I think connecting these two groups in a personal and direct way will bridge the social gap,” Pennartz explained.
A University of Melbourne student I met recently, Samantha Leeson, has been staying in the city for the last couple of months for university and work. Leeson grew up in a remote area along Byron Bay, and admits her longing for home,.“It’s always nice to take a step back and breathe from all the hustle and bustle, and I think rural ambience is a completely different kind of beauty,” she said. “You can enjoy stars at night, away from sound and air pollution, and the best thing you could have is an experience living with animals and see how farm products are being processed.”
Shacky’s targeted customers for the initial period are mainly urban Melbournians, while targeted hosts are farmers who live in rural areas. Shacky’s first hut will be established in Tarndwarncoort, home to the beautiful Polwarth sheep owned by a farmer named Tom Dennis. The tiny-wheeled house is made of corrugated iron exterior and about 10-feet tall. A comfy bunk bed attached to its timber wall interior with a cozy couch underneath designed for customers’ comfort. Visitors can expect a real taste of rural Australian life and at the same time be equipped with facilities they need – power points, cooking facilities, comfy bed, and a separate toilet.
“I can’t wait to get away from the city!” an Urban Melbournian I met during Shacky’s idea pitching in Melbourne Accelerator Program Launch Party, Mark Davis, expressed his eagerness for holiday, “I’ve always loved a getaway in the farm for my long holidays. A night stay in tiny house like Shacky is something I would want to look at. I think it’s going to be a much more intense experience than staying in the normal farm stay.”
RAISING THE INCOME OF THE FARMERS
Australian farmers have been experiencing a declining trade in recent decades, not to forget the ups and downs they face due to climate change and fluctuations in commodity prices, according to ABS. In addition, government subsidy support is at its lowest level for agriculture of any major agricultural producer. In a recent research, Australian total producer support in 2010 was 2.65 per cent compared to the OECD country with an average of 19.87 per cent.
“The only help we get from government is reduction for the land tax, which helps the cost of production a little bit.” Dennis, the Tarndwarncoort farmer explained.
As a result, there are a declining number of farmers in Australia as small farmers shift to large-scale farming operations, and fewer young people take over family farms. ABS data shows that the number of Australian farmers declined by 40 per cent over the past 30 years.
“As a self-employed Australian farmer, I have to work long hours and my average yearly income is much lower than people working in other occupations. I used to work in government and I earned $80,000, while working in the farm, I only eaerned $18,000 each year, or could be less,” Dennis continued, “taking into account our responsibility to pay employees as well as losses from the income itself. In the end, we have to reinvest our profits to the business.”
“With our presence,” said Pennartz, “we hope that Shacky will bring more clarity to farmers’ economic goals. By becoming our host they will generate an alternative income which will positively influence their financial condition.” According to Pennartz, farmers will purchase a Tiny House for about $15,000 from Shacky and they can rent it online for about $125 a night. He estimated farmers would get a positive expected return within a year, after up to 180 nights occupied with guests.
Dennis was convinced with the business prospect, not only because of the business value but also Pennartz’s capability, “Joep is someone I can really work with,” Tom said, “I hope his business will not only help farmers to supplement their income, but also convince Australians to support local farmers.”
THE SOCIAL ENTREPRENEURS’ CHALLENGE
Taking part in society, particularly as a social entrepreneur, has never been easy. There’s a clear message behind social enterprises that separates them from other profit enterprises – where the mission to deliver social value comes first and wealth generation comes next. They must strive to bring social impact, but to grow the organization and getting a fund itself takes massive hard work. Some organisations may benefit from government funding or corporate investments; however, approaching investors may not be easy.
“We only got one investor so far, but that (crowd funding) has helped me a lot,” Pennartz said exuberantly when we met a month later in a small café in North Melbourne. “I feel like a beggar, asking people to donate money for us, every single day! But finally we managed to raise $25,000 after a month.”
Since the crowd funding started a month ago, Shacky has gotten a coverage in the media, as well as positive responses from farmers around Victoria and New South Wales. “However it will take years to prove the real value of Shacky to farmers – we need to market it in the right way in order to meet the right target, and up to a certain period of time, we need to grow with rising number of customers,“ he said with a smile. “It takes a lot of sleepless nights to make this dream come true. But I know this will be happening – yes, really.”
Just like any other enterprise, Pennartz has to bear the responsibility of growing the business, maintaining the quality of its facility and operations, as well as managing relationship with farmers. “For the time being it’s just me and myself,” said Pennartz, “but our company will grow in the next couple of months – soon, there will be people in charge to maintain all of those vital parts. Within the next two years, our company will focus on providing the best product quality and customer service. We also have a plan to expand within Victoria for the first year, and will hopefully try to move one step further to New South Wales in the following year.”
“Despite of all the challenges, the most important thing is to believe that Shacky will be part of a positive change,” Pennartz continues, “soon, there will be a fair distribution of income as well as social barriers knock down between rural and urban areas, and I couldn’t be more excited to bring Shacky towards its big aim.”
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