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WINGS Market Survey Report for Gulu and Kitgum Districts. Nathan Fiala, Ph.D. Status of Return. Many people have returned home and begun farming The camps, especially at the s/c, remain the market centers Majority of businesses are in the s/c headquarters Is this the best idea?.
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WINGS Market Survey Report for Gulu and Kitgum Districts Nathan Fiala, Ph.D.
Status of Return • Many people have returned home and begun farming • The camps, especially at the s/c, remain the market centers • Majority of businesses are in the s/c headquarters • Is this the best idea?
The questions • What are the costs for people to travel to s/c for trade? • What is missing at the sites? • Is there room for profit at the sites? • What are the best businesses in general? • How can they be made better?
Surveys and data collection • Used “snowball” technique to find businesses • Complete census of: • All markets in entire s/c • All businesses in the markets • ½ of sites visited for business census • Businesses found in homes, not a census • 454 businesses found in total, 82 in sites. • LC1 survey to identify what’s missing.
What is missing in the sites? • Meat is missing in most places. • People go to s/c for meat. • Fish and vegetables are present in most of the sites.
Cautions • Correlation ≠ causation • These results are about what is out there, not what can be out there • Rough identification of profits
Summary of data – small sellers • 16 businesses in sites in Gulu, 66 in Kitgum. • 14,000 USH in profit in last week. • Gulu starting capital 30,000 USH. Kitgum 35,000 USH. • Rate of children in business is same whether in Gulu, Kitgum, village or market and by business type at about 25%. • Men are 10% less likely to use child labour.
Summary of data – small sellers • Small sellers + emp spend 45 hours a week. • Pork joints spend more time working in Gulu and bicycle bodas spend more time working in Kitgum. • 13% of people in Kitgum spent 0 hours. • Have about 20,000 USH in materials on hand.
Summary of data – other businesses • Meat: • Only sold in the s/c, mostly on auction days, or by neighbors. • Much higher profits (35,000 USH). • Slightly higher starting capital (50,000 USH). • Less time (25 hours). • Bicycle bodas: • Very low profits (8,000 USH). • May have a high personal value. • No costs beyond bike. • 120,000 USH to start.
Are Gulu and Kitgum different? • Sex is not different. • Revenue is higher in Gulu. • Profits are higher by 50% in Gulu. • Starting capital is 20% lower in Gulu. • Business owners average 35 years, 3 years younger in Gulu. • Businesses spend 11 more hours in Gulu per week.
Correlations of the businesses • Who they sell to is not correlated with profit. • People that buy from source go to the parish or further. • Those that buy from agents go to s/c and district. • In Gulu • 10% increase in starting capital increases profits by 2.5%. • More hours worked also means more profit. • Results same in villages and markets. • Profit in village • In Kitgum markets • 10% increase in starting capital increases profits by 3.5%. • Older businesses make more. • Buying from the source increase profits by 75%. • In Kitgum villages • 10% increase in starting capital increases profits by 6.3%.
Where should you buy supplies? • When its possible, buying from the source is best • More profit as cost is lower • Less risks • Price changes • Drought • Supply The source Middleman/agent Village seller
Brewing is cheap and profitable • 75% of brewers had starting cost below 10,000 USH • With profits of about 5,000 USH. • 38% use child labour. • Only 4,400 USH of materials on hand. • Spending 40 hours/week on business. • More time spent on business, the higher the profit. • Already have business skills that may translate.
Raising animals: the risks • Animals can die, so people need to be well educated on care • Need proper housing and time to look after • Money is locked in for some time • Easy to kill by other if jealousy
The personal value of selling • What is the value of someone’s time? • How might this be affected? • Their income ability • Their sense of fairness • How much fun they have while working • Habits
Summary • Bigger the business, bigger the profit. • Men and women in the same business do just as well, but don’t always do same business. • Animals are a great idea, though education is needed. • This may not be appropriate for the vulnerable or those that need a quick turnaround in cash. • Time you can put in the business is important.
Summary, cont. • There is a very large demand at the village level for sellers. • The profit may not be so good, and the benefit to the community is mixed. • Only markets today are near the s/c headquarters. • Gulu and Kitgum are different places. • There are better places to buy supplies, mostly from Lira. This increases profit and decreases risk.