Basic Impact Assessment At Project Level Page 5
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362.
IMPACT ASSESSMENT FOR ENTERPRISE DEVELOPMENT
Impact assessment for enterprise development (ED) has three different, but interrelated,
objectives:
• Accountability: to provide evidence about the achievements of ED interventions and
their costs
• Improving Programme/Project Effectiveness: providing recommendations about the
means by which present and future programme/project performance could be improved
• Policy Development: to provide guidance about the ways in which government and
donor policies should be reformed so that the environment for enterprise development
becomes more favourable.
Each of these objectives is likely to shape the design of an IA in different directions.
Accountability encourages a quantitative focus and the comparison of inputs with outputs
and outcomes. Improving effectiveness encourages a focus on the processes by which
inputs are converted into outputs and outcomes.
Often this means that there is an
extensive use of qualitative research methods. Policy development encourages a focus on
macro-level contexts and often involves international comparisons.
Impact assessment for ED at DFID is particularly important in showing how ED work
contributes to poverty alleviation by benefiting the poor. Examples of this include support
for small and medium enterprises (to create jobs or lower cost goods and services for the
poor) and creating an enabling environment for private sector development (to promote
pro-poor economic growth).
The breadth of ED interventions means that very different approaches to IA have to be
adopted, depending on the nature of the intervention. Methodologies are relatively well
advanced at the micro-level (especially for microfinance) but are less mature at the macro-
level of policy reform and institutional change.
While all of the partners with whom EDAs work should, as a matter of good practice, be
assessing the impacts of their activities, the Evaluation Department at DFID has a distinct
role. It provides independent assessments of the achievements of DFID investments,
including ED projects and programmes, and seeks to draw out policy lessons for DFID
from comparative international studies.
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