Cost-benefit ratio = 1 : 5.7
Every $1 invested in Street Business School generates $5.70 worth of increased income for an entrepreneur within 18 months of completing the training. This cost-benefit ratio demonstrates that SBS is a highly cost-effective intervention. For a total cost of $3,673,437 invested in the organization over a three-year period, an additional $20,938,590 in increased income is estimated, resulting in the average entrepreneur lifting her family above the global poverty line.
This ratio reflects increases in the income of entrepreneurs for only one year. No assumptions are made about increased income in future years, which would result in an even higher ratio.
This ratio also does not capture other social benefits experienced by entrepreneurs. For example, research shows that with an increase in girls’ educational attainment and gender equity in the workplace, economies grow. Neither that nor additional benefits such as improved health, lower fertility rates, decreased dependence on other aid, etc. are included here. It is expected that a Social Return on Investment analysis would result in an even greater cost efficiency of the SBS program.