Indicator Definition
| Indicator Name | PSD 2.3.1 Number of businesses having gained access to and/or making use of formal or non-formal financial products and services |
|---|---|
| Indicator Definition | Businesses: Any enterprise or company organized to produce goods or provide services with the goal of making a profit. This includes both self-employed entrepreneurs and small and medium enterprises (SMEs). Formal Financial products and services: These are financial products and services provided by regulated financial institutions, such as banks, credit unions, and insurance companies. Examples include savings accounts, loans, insurance policies, and formal investment opportunities. It can also include other non-financial services such as training programs or legal support related to finance. Non-Formal Financial products and services: These services are provided by unregulated or informally regulated entities and do not fall under the same legal frameworks as formal financial institutions. Examples include community savings groups, informal lending circles, microfinance institutions, impact investors (e.g. private equity, venture capital, impact linked finance or philanthropic) funds, and other grassroots financial mechanisms. It can also include other non- financial services such as peer-to-peer learning or community-based training related to finance. |
| Indicator Level | Output |
Disaggregation
| Disaggregation |
|
|---|---|
| Measuring Unit | Self-employed entrepreneurs and micro, small, and medium enterprises (MSMEs) that have received support by Helvetas (directly or indirectly) to access and use financial and/or non-financial products and services. |
Examples of Actvities
Financial Literacy Training: Workshops and sessions to educate entrepreneurs and MSMEs on managing finances, budgeting, and understanding financial products.
Access to Microfinance: Partnering with microfinance institutions to provide tailored loans and credit facilities.
Access to Impact Investments: Partnering with (impact) investors and entrepreneurial ecosystem stakeholders (e.g. accelerators) to facilitate access of businesses to finance
Savings Group Formation: Facilitating the creation of community-based savings and credit groups.
Business Development Services (BDS): Providing training and consultancy services on business planning, management, marketing, and financial literacy.
Technology and Innovation Support: Helping MSMEs adopt new technologies and innovative practices.
Market Linkages: Facilitating connections between MSMEs and potential buyers, suppliers, and partners.
Capacity Building and Training: Organizing workshops and training sessions on various business operations.
Legal and Regulatory Assistance: Helping MSMEs navigate legal and regulatory requirements.
Networking and Peer Learning: Facilitating peer learning groups and business clusters.
Provision and Support of Agricultural Inputs and Equipment: Providing seeds, seedlings, beehives, fertilizers, and other inputs.
Technical Assistance, Market Access, and Sustainable Practices: Offering training in, for instance, modern farming techniques and sustainable practices.
Data Collection
| Data Source and Means of Verification | Examples of data sources (depending on project modality):
|
|---|---|
| Measuring Frecuency | Data should be collected continuously throughout the project or whenever activities are completed. |
| Data Collection Guidance | The projects may work either with formal or non-formal product and service providers, or directly with the entrepreneurs/MSMEs. Consequently, the data collection approach depends on the project's modality. For projects working with providers of products and services, the data is collected based on quarterly or annual reports from the institutions. The report should include the types of products and services provided (divided by at least financial and non-financial), the number of people/businesses who used such products and services (important that they report the number of businesses/individuals accessing and using the products and services and NOT the number of products and services provided), and when applicable, the amount of the loan/investment. For projects working directly with MSMEs and entrepreneurs, the data is collected through project databases developed through regular monitoring activities when businesses are using financial or non-financial products and services. Use digital platforms and tools to collect and manage data efficiently, especially for projects that involve the provision of digital tools and technology. If, for some reason, such data is not available, a survey should be conducted with the MSMEs and entrepreneurs who have participated in the project |
| Common Challenges | Challenge: Differentiating between formal (e.g., bank loans) and non-formal (e.g., community savings groups) financial services can be challenging, especially in informal economies. Approach: Develop a clear classification system that defines what counts as formal versus non-formal financial services. Provide examples to businesses to improve understanding. Challenge: The types of financial products and services available can vary greatly across regions, making it hard to apply a uniform data collection method. Approach: Tailor data collection methods to the local context, considering the specific financial products/services available in each region. Challenge: Ensuring that businesses have not only accessed but also effectively used the financial and/or non-financial services can be difficult to verify. Approach: Conduct follow-up surveys or interviews with businesses to verify not only their access to services but also how they have utilized these services and the perceived impact on their operations. Challenge: Ensuring data privacy and security for MSMEs. Approach: Implement strict data privacy policies, anonymize data, and limit access to authorized personnel. Communicate clearly with MSMEs about data use and protection measures. Use encryption for data storage and transmission. Train staff on best practices for handling sensitive data. |
How to report
Aggregate the total number of MSMEs and entrepreneurs that have accessed and used financial and/or non-financial products and services without double counting and provide results per disaggregation category.
Data should be collected continuously during project implementation and progress should be reported to head office at least annually.
Related Indicators
| Related Donor Indicators | SDC: IED_ARI_3 Number of people having access to and making use of formal financial products and services
2.2.4: Number of persons in rural areas accessing financial services. USAID: EG.2-12 Number of private sector enterprises with increased access to finance due to USG assistance EG.4.2-1 Total number of clients benefiting from financial services provided through USG-assisted financial intermediaries, including non-financial institutions or actors EG.5.2-1 Number of firms receiving USG-funded technical assistance for improving business performance EU OPSYS core indicator: Number of Micro Small Medium Enterprises (MSMEs) provided with access to loans and other financial services, disaggregated by sex and age (15-30 years) and regions |
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| Related HELVETAS Indicators |