
The Multiplier Effect
-$289,284.00
How does Community Enterprise Solutions "multiply the gift"? First, let's look at the wood burning stove business. Our three entrepreneurs sell these stoves and build them on-site for $80 each. The family who buys the stove makes six equal monthly payments with no interest. Based on September sales of 21 stoves (a slow month) the entrepreneurs netted $203 . In addition, as the average family spends $30 a month on wood before purchasing the stove and saves at least 50% in wood consumption with the stove, the stoves save $15 per month per family . Thus during the payback period the stove pays for itself. Finally, given that the stove should last at least five years, each family will save roughly $810 in total fuel wood purchases (this is equal to eight or so months wages for a farmer). Adding it all together,
the total direct economic benefit of the September stove activity is $17,213.
Second, let's look at the women entrepreneurs or Vision Advisors who give exams and sell eye glasses. In September we supported 50 women who speak six different native languages. Thirty five of these were active in the field and fifteen were in training conducted by our staff. These women sold 343 pairs of glasses (248 reading glasses) for $5 each. Of this $5 they net roughly $1.25 and return the rest to be used for further glasses purchases, advertising, and equipment purchases etc. They also sold 387 other products including eye drops, cases and cords. The Vision Advisors' total net earnings in September were $676 Assuming that of the 248 reading glass purchasers (almost all for their first time) half will now gain one months' productivity over the course of their use of the glasses (they can see and thus work up close again!) and an average monthly wage in rural Guatemala of $50 (averaging men and women), this equals a total economic benefit of $6,200. Thus the total direct economic benefit of the September glasses sales business is $6,876.
So, amazingly, with just these two CE Solutions initiatives the economic benefit totals $24,107 based on September activities. And using this as an average month (actually entrepreneur and sales numbers are often higher and are increasing), the total annual direct economic effect would be $289, 284.00 annually.
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