Increased Family Income

One important purpose of MEDEP was to significantly increase the income of the poor people. As one indicator of success regarding incomes, MEDEP has compared the participating entrepreneur's family per capita income before MEDEP with the net income (revenues minus all non-family labour costs) of the resultant micro-enterprise (not including any other income that the family may still be earning). The average MEDEP micro-enterprise then provided 56% more per capita family income than the family was receiving before MEDEP. The percentage increase in family incomes is similar for Dalits, Indigenous Nationalities, and ultra poor; however their enterprises are smaller than those of other MEDEP entrepreneurs.

Interestingly, the socially excluded Dalits and Indigenous Nationalities have performed well in terms of the increase in family incomes as a result of their participation in MEDEP. On average, they start from a smaller base salary, resulting in larger increases percentage-wise. Nonetheless, such rapid increases in family income among the very poor and disadvantaged can often have very significant impacts on their lives.

Although the average increase in family per capita income is 56%, it is important to note the differences. The following situations appear to affect performance. The percentages of entrepreneurs experiencing higher increases in income were greater among the Phase 1 entrepreneurs than with the Phase II and Phase III entrepreneurs who have only recently begun their enterprises. The tables below show that only about 10% of the Phase II entrepreneurs show a family income change of over 50%. (And this calculation does not include those that have not been in business long enough to report an annual post-MEDEP income.) On the other hand, the table of Phase I entrepreneurs shows that about 85% are above the 50% mark in terms of increase in per capita family income.




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