Framework for Evaluating the Impact of Small Enterprise Initiatives

Small enterprises play a critical role in the overall economy, providing a broad range of tools and services, both for domestic and foreign consumption. A large number of donor-funded programs designed to reduce poverty exist, yet few indicators that measure their actual impact on reducing poverty exist.

This paper:

• Shows how to use program logic models to structure the chain of causality between program inputs, outputs, and outcomes;
• Focuses on interventions to develop markets for business development services and how to apply these principles in practice.

The author recommends the following:

• For evaluators:
  • Clarify targets, tools and underlying program logic,
  • Plan evaluation at the inception of programs,
  • Establish baseline data and program records,
  • Recognize that impact assessment is explicitly about demonstrating causality,
  • Build valid comparisons into the analysis,
  • Use multiple methods,
  • Recognize that good enough is not good enough,
  • Commit needed resources.
• For donor committees:
  • Establish evaluation standards,
  • Collect and disseminate information on good evaluation practices,
  • Collaborate on comprehensive of selected initiatives.