Competition in Water and Sanitation: The Role of Small-Scale Entrepreneurs
Author: Tova Maria Solo Date: 12/1/1998 (PDF, 200KB)
There has long been a belief that the water and sanitation sector has a high degree of natural monopoly. But competition is widespread in the low-income retail market in developing countries. There is no inherent monopoly in such small-scale activities as reselling water by the bucket. This Note explores the diversity of small-scale entrepreneurs supplying unserved niches of the water and sanitation market. Small enterprises often account for a larger share of the market than do incumbent utilities, and they are well placed to complement and even compete with trunk concessions and public companies in tailoring services to the poor. So in designing concessions or any long-term rules for the sector, governments should take account of existing or potential small providers.