For Profit Small Business

For Profit Small Business

A for-profit small business could work well because if it were owned by the community leaders, the profit could be put toward community renovations and upkeep in order to further benefit the community. In this model, the team could also create employment opportunities, which if expanded throughout the community and other communities, would yield exponential returns to the community. The downside to this model would be finding money for the original down payment needed to cover initial inventory and other operating expenses. This could also lead to the aforementioned micro-franchising expansion if successful. It is estimated that roughly, 37.7 percent of sales or 142.5 billion rand, or roughly $20 billion, (Rolfe, Woodward, Ligthelm, and Guimaraes) in sales of basic goods go through informal shops. Any ability to tap into that market or expand it would be greatly beneficial for all involved and would lead to a much better average financial standing for all community members as well as the upgraded overall cleanliness of the settlement.

The team speculated that this business type would be overseen by a group of community leaders, most likely the pre-existing savings group, as it would involve less training and the additional input of ideas from the group could be extremely helpful. This would also be beneficial because the savings group would be able to manage the revenue generated by the kiosk.