Thanks to her husband's Peruvian family, Amanda Ruiz's first child was dressed in some fine clothing. As she recalls, "I was stopped in the street by people asking where I'd bought these cardigans, alpaca ponchos and hats. They were hand-made gifts from Peru but that was my Eureka moment. I thought, 'why not launch a business selling this stuff'."

Ruiz started Peruvian Knitwear in September 2007 with £5,000 after leaving a London marketing agency to have a baby. A fluent Spanish speaker, she started researching small suppliers in Peru. She says she hit gold when she flew to Lima—"by going to market stalls I met some people who knew a factory owner."

The website has been a particular hit with women, so Ruiz says she quickly diversified into ladieswear. A natural creative—she grew up immersed in her mother's bead business—she says she emails her designs to her Peruvian factory. It's a strong collaboration: "They're really skilled. She'll replicate the clothes from my drawing. I'm putting back into my husband's country, which I'm happy about."

Ruiz is committed to trading ethically and says her customers are interested in its ethical credentials—she doesn't carry stock so none of the products are mass-produced. A member of sustainable development network Ethical Junction, she says she keeps on top of working standards in the Peruvian factory. "I interview my factory owner and make sure the employees are given rights—maternity, healthcare, pensions. This year I've sold into Oxfam—you have to jump through a lot of hoops to prove your ethical stance—so that's an accomplishment."

While Ruiz says profit is important—her projected turnover this year is £75,000, with a net profit of £11,000—she says with two young kids her work-life balance is also key. With advice on tap from her mother and husband (who has an MBA), she reckons she's got it just right.