Partnering for effective enterprise development requires thinking strategically about your company's vision and choosing a credible implementation partner. Measuring the impact, not just the spend, of enterprise development initiatives allows companies to demonstrate real and sustainable benefits for beneficiaries and stakeholders. Key lessons include clearly defining the problem to be solved, adapting international best practices to the local context, carefully selecting program participants, starting small to allow for learning, and budgeting for monitoring and evaluation from the outset.

1. Partnering for Effective Enterprise Development
Earl Sampson, Country Director, Mail: esampson@technoserve.org.za

2. Contents
Introduction to TechnoServe
Partnering for Effective Enterprise Development
• Problem Statement
• The partnership relationships
• What problem are we trying to solve?
• Moving from SPEND to IMPACT
• Lessons Learnt

3. Guiding Thoughts
“ history shows that countries thrive when they invest in their people and infrastructure; when they promote multiple export
industries, develop a skilled workforce, and create space for small and medium-sized businesses that create jobs”
President Barak Obama
2009 speech to Ghana Parliament
“Only by letting thousands and millions of entrepreneurs try new ideas, to innovate, to create businesses that put those
Ideas to work in a competitive and open way, only by doing those things are we going to be able to tackle some of the
world’s big problems”
Angel Cabrera, President,
Thunderbird School of Global Management
Chair Global Agenda Council on Entrepreneurship
“I am arguing that business is good for society and essential for sustained development. Companies, business leaders
and their organisations should play a much more thoughtful, strategic and involved role in the societies in which they
operate. The book is a call to ‘arms’ as Martin Wolf of the Financial Times has described it. A call on business leaders to
stop apologising and stand up for competitive capitalism especially in developing countries. The facts are undoubtedly
on their side.”
Ann Bernstein, Author
The Case for Business in Developing Economies

4. TechnoServe is a global non-profit with activities in over 20 countries

5. In 2009, over 1 million people benefited from TechnoServe programmes
TechnoServe worked alongside 2140 businesses, in over a dozen industries
2008 2009
Revenue ($) 149m 189m Main Programmes
Products Purchased 64m 62m • Agriculture Value Chain Development
# Smallscale Producers 196,000 218,000
• Entrepreneurship / SME Development
Wages Paid 9m 20m
(# employees) 32,000 53,900 • Local Economic Development
Profit 16m 27m
Approx. 1.4 million men, women and children benefited
from these income sources (based on 5 persons per
family)
In addition, TechnoServe Entrepreneurship programmes
trained and mentored more than 1500 people in 9
countries
5

6. Enterprise Development - Problem Statement
Situation Complication
ED is a key pillar of the BBBEE • Impact from ED spend is seldom
scorecard where Companies can make a measured
real and sustainable impact in South • ED spend is often diluted through
Africa “being all things to all men”
• ED spend is seldom approached
through linkage to core business and
strategy
Solution
• Think strategically around your company vision for ED
• Choose a credible partner for implementation
• Then, stick with it, allowing for lessons to be learnt
• Get out into the field, see it in action, engage
• Then, start to measure impact

7. The partnership relationships can often be numerous and complex
Corporate Government
Implementation
Partner
Local Communities
Interest Groups
Beneficiaries
Primary Partnerships Enabling Partnerships

8. What problem are we trying to solve?
Thinking this through helps clarify intent and allows for robust ED projects::
• Who are the beneficiaries?
• What size of beneficiaries do you plan to work with?
• Is it financing or technical assistance?
• Is it working with smallholder farming?
• Is it creating markets?
• Is it culture change?
• Is it piloting for scale and sustainability?
• Who are the key stakeholders?
• Allows for Monitoring and Evaluation to be incorporated from the outset

9. Monitoring and Evaluation - Moving from Spend to Impact
Measuring Spend
• Calculates various ED initiatives happening across the organisation
• Takes time and resource
• Understands the impact on the BBBEE scorecard
Measuring Impact
Why are you measuring Impact?
Financial Metrics
• Revenue and profit • Auditors View - backward looking
• Jobs created
• Wages paid • PR / Marketing View
• Sourcing from local suppliers
• For learning and doing
Social Metrics
• Household income
• Gender
• Household food security
• Impact on education
• Impact on health

10. Lessons Learnt
• What problem are we trying to solve?
• South Africa is complex - best practice solutions must be transferred with care, and
tested in context
• Selection of entrepreneurs / farmers / businesses is an important first step to a
successful programme
• There is a place for small scale first - allowing for learning’s and robust model
development
• Ensure that you have budgeted for Monitoring and Evaluation from the outset