Field Report
Spring 2013
INNOVATING FOR IMPACT LAUNCH OF INDEPENDENT EVALUATION TO MEASURE IMPACT Measuring our outcomes has always been a top priority of Village Enterprise. During the past two years, we have reviewed and improved nearly every aspect of our field program, in an effort to increase our impact and effectiveness. We are now prepared to assess the results of those changes. Thanks to a million-dollar, three-year grant from a major philanthropic advisory group, Village Enterprise will launch an ambitious multi-year evaluation this fall. An independent and highly respected international development organization, BRAC, will employ a rigorous randomized control trial methodology to compare the impact of our program components with matched control populations in rural Ugandan villages. They will measure consumption patterns, standard of living, and business sustainability—and will even assess the impact of motivation on those living in extreme poverty. CEO Dianne Calvi comments: “The results will guide future changes to our program, including our expansion into additional African countries. Moreover, it will contribute to the ongoing policy debate on the creation of sustainable mechanisms for poverty alleviation among the rural ultra-poor.”
SAVINGS KEY TO SUSTAINABILITY
SMARTER DECISION-MAKING
INNOVATIVE TARGETING PRACTICES
In the rural, remote areas where we work, most people are constrained to using informal financial methods. The lack of access to formal savings/ loan services increases susceptibility to financial or health set-backs, and hinders the formation of capital needed to take advantage of business opportunities. Nicholas Kristof of the New York Times observed, “It had become increasingly clear that the most important element of microfinance isn’t lending, but savings.”
For poor rural farmers, new crops and new methods carry risk. Thus, changes to historic practices are daunting. That’s where our new SMART (Smarter Market Analysis Risk Tool) program comes in.
Walk through a small village in rural East Africa and signs of poverty abound. How can we identify the ultra-poor population we serve?
Business Savings Groups (BSGs) provide business owners with a community-based, secure place to bank their earnings, and local access to credit. Increased savings directly improves business sustainability, as it helps to smooth income fluctuations, buffers financial emergencies, builds assets, and increases access to credit.
Notes one participant: “Access to loans from our BSG boosts our business; we see real change in our businesses and our lives.”
Employing mobile data collection technology, the SMART program captures local seasonal pricing, risk factors, and demand for local crops. It provides accurate, easily-understood information about which crops would be best to grow in specific regions, by season. Combined with best-practices instructions, this material enables our farmers to take risks that can generate more income. Village Enterprise was recently selected as one of the Rockefeller Foundation’s Next Century Innovators for the SMART tool, awarded to those groups that “are forging new pathways... and improving conditions for the world’s most vulnerable populations.”
Village Enterprise – www.villageenterprise.org
We start with a Participatory Wealth Ranking (PWR) exercise, in which village leaders come together and first define poverty and wealth in their community, and then sort their neighbors into economic groups (very poor to rich). Following the PWR—and before enrolling individuals in our program—we administer the Grameen Foundation Progress Out of Poverty Index (PPI), a tool that helps to identify the poor from the extremely poor. The PRW’s clear guidelines preclude charges of patronage or favoritism, support mentors when they turn down a request for program inclusion, and reduce jealousy among those who do not qualify. Just as important, local leadership involvement helps communities “own” the process and outcomes.
Field Report
Spring 2013 Starting Over 2,150 Businesses This Year: Over the past 12 months we significantly strengthened our training and mentoring programs, fully deployed Business Savings Groups, refined our participant selection methods, and expanded our network of African staff.
UGANDA
KENYA
MOBILE DATA COLLECTION: We are now using Open Data Kit, a free, open-source suite of tools provided by Google.org, to simplify our complex data collection, entry, and analysis processes in Uganda. Using smart phones, our staff can now enter small business information directly from the field, saving significant time and reducing data-entry errors.
CONSERVATION: Last year we introduced our unique, integrated conservation and business program to communities adjacent to the Kisere Forest, in an effort to halt deforestation. More recently, we incorporated conservation concepts and techniques into each of our financial and business literacy modules, encouraging all of our business owners to adopt sound conservation practices.
POST-HARVEST TECHNOLOGIES: The absence of technology can limit the productivity and earnings of the ultra-poor. Over the past year we partnered with Compatible Technology International to pilot small hand-powered seed/grain/nut grinders to 20 business groups located in remote areas without electricity. These businesses grind maize, millet, and groundnuts for a fee.
BEES-IN-A-BOX: A partnership with Honey Care Africa and Safaricom Foundation led to a new honeybee Business-in-a-Box, which has been distributed to over 160 businesses near the Kisere forest in Western Kenya. The beehives serve two important purposes, pollinating crops surrounding the hive while providing additional income through the sale of the honey.
POTATOES-IN-A-BOX: Direct asset transfer—in lieu of cash grants—can be an effective way to provide hard-to-locate inputs to our business owners. An example is Irish potatoes, which we recently introduced to farmers in Western Uganda. One goal of this program is to link farmers to create value chains which can boost sales, grow markets, increase profitability, and promote business sustainability.
KUKUS-IN-A-BOX: During holiday seasons, the price of chickens can increase dramatically in East Africa. Last fall we launched our kukus Business-in-a-Box program with selected business groups in the Kakamega region. Groups received chicks, vaccines, feed, and related items, which allowed them to bring three-pound broiler chickens to market in time to meet the high end-of-year demand.
Village Enterprise – 800.785.1775