Financial Sustainability of Supported Businesses

Outcome indicator

Indicator Phrasing

% of supported business financially sustainable by the project's end
% des entreprises soutenues à la durabilité financière à la fin du projet
% podpořených živností, které jsou ke konci projektu finančně udržitelné

Indicator Phrasing

English: % of supported business financially sustainable by the project's end

French: % des entreprises soutenues à la durabilité financière à la fin du projet

Czech: % podpořených živností, které jsou ke konci projektu finančně udržitelné

What is its purpose?

The indicator assesses the percentage of supported businesses whose income enables them to be financially sustainable (i.e. to cover their costs and provide profit that motivates the business owners to continue their operations).

How to Collect and Analyse the Required Data

Determine the indicator's value by using the following methodology:

 

1) Conduct interviews with the business owners assessing their total income, expenditures, net profit and owners' motivation to continue the business (considering the benefit they gain from doing so).

  

2) Evaluate whether their net profit and motivation enables them to be financially sustainable (use a pre-defined set of evaluation criteria)

   

3) Calculate the indicator's value by dividing the number of financially sustainable businesses by the total number of assessed businesses and multiplying the result by 100. 

Important Comments

1) Consider to assess also the business owner's next plans by asking, for example: "In the following year, do you plan to expand your business or keep it at its current scale or reduce its scale or close it down?"

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