A Study of Sustainable Compost Micro-Enterprise In Chimaltenango, Guatemala: Profitability and Employee Characteristics

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2012-02-14

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Over 13 million people live in Guatemala, and among this population more than 50% live below the poverty line. One proposed solution to mitigate the large percentage of poverty in the country is micro-entrepreneurship. A compost micro-enterprise is a small business, which collects organic raw material and processes it into stable humus material for the purpose of applying to soils to increase crop yields. Developing such micro-enterprises could not only indirectly improve current soil nutrient deficiencies specific to the region, but also provide alternative incomes for the already agriculturally involved community.

The success or failure of enterprises practicing composting may be measured by a plethora of figures or outcomes. Employee characteristics are one variable that should be taken into consideration when estimating the efficiency of an agricultural enterprise's operations and productivity. While a variable, such as an employee characteristic, may not be able to be quantified exactly it should be argued that this variable can have a structural impact on productivity. Another crucial variable considered when developing such a micro-enterprise is accounting for its input and output. It is explained the issue of costs within micro-enterprises is complex and should be considered not only in terms of fees but also in terms of payments in any kind, such as entry and exit presence, and the duration of the apprenticeship. When an enterprise has failed to account for its various inputs and consequent output, it has become unsustainable because it has not satisfied basic economic, social and security needs presently and for its future. This study identified and described employee characteristics and documented the inputs and outputs of compost micro-enterprises in Chimaltenango, Guatemala.

The study found that employee characteristics, particularly gender, age, and occupation affected a micro-enterprise's access to markets as well as row materials, and how efficiently tasks were completed. Costs of labor, raw material, transport, packaging, energy and the location the micro-enterprise itself heavily influenced profitability. The production of any product on a large scale must anticipate how positive financial outcomes will occur because profitability may not arrive as planned. If the revenue cannot be determined and/or made, compost micro-enterprise may fail to be a sustainable, much less a viable option for alternative income streams.

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