Development Associates, Inc.1.6 For enterprises assisted, increase operational pr<strong>of</strong>itability 20 by not less than5% per month, reported month to month by enterprise count <strong>of</strong> those above5% pr<strong>of</strong>it increase.Targets: year 4: 90 ATD: 714 LOP: 360A. The concept <strong>of</strong> increased pr<strong>of</strong>it from assisted enterprises is critical indemonstrating <strong>the</strong> results <strong>of</strong> <strong>SME</strong> business advice. It is predicated onlonger-term relationships with enterprises, so that assistance is provided,<strong>the</strong> enterprise grows <strong>and</strong> is increasingly pr<strong>of</strong>itable, <strong>and</strong> figures areavailable to demonstrate that success. As <strong>the</strong> enterprise base <strong>of</strong> long-termclients shrinks—due to <strong>the</strong> revised KBS priorities <strong>and</strong> fee-for-servicerequirements, <strong>the</strong> numbers <strong>of</strong> enterprises in <strong>the</strong> reporting base declines.Thus <strong>the</strong> numbers no longer capture <strong>the</strong> concept <strong>of</strong> all benefits that haveaccrued to <strong>the</strong> enterprise cohort assisted by <strong>the</strong> project. Continuing sales<strong>and</strong> pr<strong>of</strong>it figures are unlikely to be available from enterprises that KBSassists one-time on a fee-for-service basis.B. Month to Month pr<strong>of</strong>it comparisons would be interesting if provided for<strong>the</strong> same firm, each month. But <strong>the</strong> indicator is a count <strong>of</strong> all firms in <strong>the</strong>KBS client base which achieve a 5% pr<strong>of</strong>it growth one month over <strong>the</strong>previous month. The measure as taken for one firm is a compound numberwhich puts exceedingly high dem<strong>and</strong>s on individual enterpriseperformance. If <strong>the</strong> business has a pr<strong>of</strong>it <strong>of</strong> $1,000 in month one, 36months later, to satisfy a 5% per month pr<strong>of</strong>it growth each month, it wouldneed to earn $5,791.82 This would move <strong>the</strong> enterprise from an annualpr<strong>of</strong>it rate <strong>of</strong> $12,000 to an annual pr<strong>of</strong>it rate <strong>of</strong> $69,501 in 3 years. Thisindicator is counted by noting each instance <strong>of</strong> one firm achieving a 5%pr<strong>of</strong>it increase over <strong>the</strong> prior month. Twenty firms were on <strong>the</strong> list inAugust 2003, 41 firms on <strong>the</strong> list in December 2003. Eight firms were onboth lists. The following table <strong>of</strong> shows <strong>the</strong> complications in using thisindicator:Firm August 2003 December 2003Ending Pr<strong>of</strong>it Beginning pr<strong>of</strong>itAdi 28,100 19,350T<strong>and</strong>ems 5,800 5,150Maja Nesovic 3,280 4,170Liria-Maliqi 23,446 16,841Ribnjak 2,100 1,600Bazim Wood 750 390Mladenovic 800 1,000DTS Kondi 9,850 12,80020 Operational pr<strong>of</strong>itability is thought to be Earnings before Interest, Taxes <strong>and</strong> Depreciation (EBITD).<strong>Evaluation</strong> <strong>of</strong> <strong>the</strong> <strong>USAID</strong>/<strong>Kosovo</strong> <strong>SME</strong> 47 May 2004<strong>and</strong> <strong>Agriculture</strong>/Agribusiness ProgramsVolume I
Development Associates, Inc.Only three firms on both lists actually had pr<strong>of</strong>it levels increase betweenAugust <strong>and</strong> December 2003. The o<strong>the</strong>rs dipped, but made <strong>the</strong> list because<strong>the</strong>y scored a 5% increase over a previous-lower base-month.C. The targets by year are: 1:60, 2:120, 3:90, 4:90. The concept is importantbut <strong>the</strong> measurement is seriously flawed. The original Task Order did notspecify month to month comparisons <strong>of</strong> pr<strong>of</strong>it levels.D. Increasing pr<strong>of</strong>it in assisted enterprises, captured <strong>and</strong> reported in ameaningful way, should be an important indicator <strong>of</strong> <strong>the</strong> success <strong>of</strong> anyfuture <strong>SME</strong> development program.E. This target/indicator has no value in assessing KBS business developmentperformance. KBS has annual figures for sales <strong>and</strong> pr<strong>of</strong>it collected from<strong>the</strong>ir clients which will be used to assess business development impact for<strong>the</strong> evaluation.1.7 Effective training programs <strong>of</strong>fered to <strong>the</strong> broad business communitymeasured by <strong>the</strong> number <strong>of</strong> people trainedTargets year 4: 600, ATD: 2,618 LOP: 1,675A. Concept valuable for rehabilitation <strong>and</strong> reconstruction as KBS began, butless valuable as an indicator <strong>of</strong> <strong>SME</strong> development in more stableconditions.B. Measured from KBS recordsC. The targets by year are: 1:75, 2:400, 3:400, 4:800. Life <strong>of</strong> Project targetsare already exceeded.D. Not a priority moving forwardE. Useful in demonstrating broadly-based non-differentiated support to <strong>the</strong><strong>SME</strong> community, an original project target.1.8 Business resource materials disseminated to enterprisesTargets: 4: 2,000 ATD: 7,897 LOP: 4,500A. Same as 1.7B. Same as 1.7C. The targets by year are: 1:150, 2:350, 3:500, 4:3,500. Life <strong>of</strong> Projecttargets are well exceeded.<strong>Evaluation</strong> <strong>of</strong> <strong>the</strong> <strong>USAID</strong>/<strong>Kosovo</strong> <strong>SME</strong> 48 May 2004<strong>and</strong> <strong>Agriculture</strong>/Agribusiness ProgramsVolume I
- Page 1 and 2:
FINAL REPORTVOLUME IEVALUATION OF T
- Page 3 and 4:
FOREWORDThis report requires some i
- Page 5 and 6:
Development Associates, Inc.IPMIRIR
- Page 7 and 8:
EXECUTIVE SUMMARYI. FINDINGS1. USAI
- Page 9:
Development Associates, Inc.• Kos
- Page 12:
Development Associates, Inc.land-sc
- Page 16 and 17: Development Associates, Inc.become
- Page 18 and 19: EVALUATION OF THE USAID/KOSOVO SME
- Page 20 and 21: Development Associates, Inc.KOSOVO
- Page 22 and 23: Development Associates, Inc.A. GENE
- Page 24 and 25: Development Associates, Inc.3. Perc
- Page 26 and 27: Development Associates, Inc.busines
- Page 28 and 29: Development Associates, Inc.provide
- Page 30 and 31: Development Associates, Inc.Factor
- Page 32 and 33: Development Associates, Inc.The tab
- Page 34 and 35: Development Associates, Inc.3. How
- Page 36 and 37: Development Associates, Inc.Fees mi
- Page 38 and 39: Development Associates, Inc.Clearly
- Page 40 and 41: Development Associates, Inc.B. CERT
- Page 42 and 43: Development Associates, Inc.Financi
- Page 45 and 46: Development Associates, Inc.The res
- Page 47 and 48: Development Associates, Inc.more ti
- Page 49 and 50: Development Associates, Inc.approxi
- Page 51 and 52: Development Associates, Inc.company
- Page 53 and 54: Development Associates, Inc.Lessons
- Page 55 and 56: Development Associates, Inc.to esta
- Page 57 and 58: Development Associates, Inc.In ligh
- Page 59 and 60: Development Associates, Inc.the con
- Page 61 and 62: Development Associates, Inc.1. Busi
- Page 63: Development Associates, Inc.As the
- Page 67 and 68: Development Associates, Inc.2.3 Pro
- Page 69 and 70: Development Associates, Inc.B. Link
- Page 71 and 72: Development Associates, Inc.3.6 B2B
- Page 73 and 74: Development Associates, Inc.has ass
- Page 75 and 76: Development Associates, Inc.A) Koso
- Page 77 and 78: Development Associates, Inc.KOSOVO
- Page 79 and 80: Development Associates, Inc.IMPLEME
- Page 81 and 82: Development Associates, Inc.quantit
- Page 83 and 84: Development Associates, Inc.RECOMME
- Page 85 and 86: Development Associates, Inc.represe
- Page 87 and 88: Development Associates, Inc.Objecti
- Page 89 and 90: Development Associates, Inc.4. Work
- Page 91 and 92: Development Associates, Inc.(300,00
- Page 93 and 94: Development Associates, Inc.surroun
- Page 95 and 96: Development Associates, Inc.This ca
- Page 97 and 98: Development Associates, Inc.1. Majo
- Page 99 and 100: Development Associates, Inc.KOSOVO
- Page 101 and 102: Development Associates, Inc.Targets
- Page 103 and 104: Development Associates, Inc.Weaknes
- Page 105 and 106: Development Associates, Inc.sector
- Page 107 and 108: Development Associates, Inc.KOSOVO
- Page 109 and 110: Development Associates, Inc.IFDC-KO
- Page 111 and 112: Development Associates, Inc.capacit
- Page 113 and 114: Development Associates, Inc.The fee
- Page 115 and 116:
Development Associates, Inc.Poultry
- Page 117 and 118:
Development Associates, Inc.TARGETS
- Page 119 and 120:
Development Associates, Inc.Inconsi
- Page 121 and 122:
Development Associates, Inc.RECOMME
- Page 123 and 124:
Development Associates, Inc.IMPROVI
- Page 125 and 126:
Development Associates, Inc.high co
- Page 127 and 128:
Development Associates, Inc.early d
- Page 129 and 130:
Development Associates, Inc.Table 1
- Page 131 and 132:
Development Associates, Inc.farmer
- Page 133 and 134:
Development Associates, Inc.P.O. 2:
- Page 135 and 136:
Development Associates, Inc.The lac
- Page 137 and 138:
Development Associates, Inc.Based o
- Page 139 and 140:
Development Associates, Inc.SUSTAIN
- Page 141 and 142:
Development Associates, Inc.markets
- Page 143 and 144:
Development Associates, Inc.decentr
- Page 145 and 146:
Development Associates, Inc.4. Have
- Page 147 and 148:
VOLUME IIEVALUATION OF THE USAID/KO
- Page 149 and 150:
Development Associates, Inc.Exhibit