Table 25

Latrine Business Characteristics and Sales

Financing

While 108 out of the 329 Latrine Business Owners (LBOs) (33%) took financing for their business, most of the LBOs who took financing fall in the middle or upper quintiles. A larger percentage of the better performing LBOs tend to take loans since they are invested in their business, comfortable taking risks, and willing to buy on credit from suppliers.

LBO Training

191 LBOs (58%) finished all three components (technical, sales and business) of the core training provided by the project. Of the LBOs that completed core training, 46% were in the upper two quintiles for monthly sales, whereas 27% were in the lower two quintiles.

Parallel Income Source

103 LBOs ( around 30%) reported a parallel source of income besides sanitation. Some of the more common occupations include farming and supplying construction material.  This table shows that there is no particular correlation between the additional income source and LBO performance (based on monthly sales).

Capital Expenditure

In terms of capital expenditure (percentage share in the total capital expenditure for the latrine business) there is some degree of correlation. It is evident that the top performers have invested the most in their business while the bottom quintile performers tend to invest less in capital expenditure. This is understandable since many of the higher quintile LBOs have taken larger loans to finance their business, often to buy equipment and materials.

Duration of Business

The more successful LBOs have invested more time in their business (21 months on average) while the less successful ones have spent only about 12-15 months. Many of the lower quintile LBOs have become inactive before even lasting a year in the business.