EDIAIS : Conference papers

Measuring the performance of business services for micro-enterprise: lessons on creating self-imposed monitoring systems and incentives among service providers in rural Bangladesh

Link to full paper

ABSTRACT

This paper discusses participatory methods in the design and implementation of performance and impact assessment systems among business service providers (BSPs) in rural Bangladesh. Impact assessment systems are more than just mechanisms for accountability. They should inform an enduring learning process among BSPs, sustained by rewards of better management information and market responsiveness. These benefits are more likely when BSPs participate actively in system design, so that it reflects their own priorities, resources and capabilities - and the needs of their clients. However many factors constrain this - frustrating the development of business service markets that include responsive and intelligent service providers: § Incentives: where activities are dictated by external project frameworks, BSPs lack real incentives to value their own learning § Guidance: there is little practical advice available to BSPs seeking pragmatic, low-cost methods of measuring their own performance and impact § Capability: many BSPs lack the confidence, skills and resources to invest time in developing their own measurement systems ITDG's Small Enterprise Unit exists to build business, technical skills and organisational capabilities, through a civil-society network that trains business service providers in rural Faridpur, Barisal and Dinajpur. ITDG does not directly fund these partner organisations, so the relationship has been less influenced than usual by local donor-recipient dynamics. In this context, ITDG encouraged its six leading partners to participate in developing performance monitoring systems. Consultation meetings with stakeholders agreed qualitative and quantitative indicators most useful to assess different levels of impact that ripple out from ITDG's interventions and our partners activities. Monitoring formats for collecting information were developed, and ITDG's partners took responsibility for field testing these. They allocated specific personnel for system implementation, and co-ordinated a small team of staff from different organisations to assess training requirements. Field testing is on going. First reports suggest that the participatory approach has produced a simple and practical system which both the BPS staff and clients value.

to top of page

The Adobe Acrobat Reader can be downloaded by clicking here