Indicator Definition
| Indicator Name | PSD 2.3.1 Number of businesses using new or improved financial and/or non-financial services from service providers strengthened by the project |
|---|---|
| Indicator Definition | The indicator counts the businesses that use a new or improved service offered by a service provider the project has strengthened (counted in PSD 2.3.2). It shows how far the support to service providers reaches into the market. The businesses may or may not also receive direct support from the project. Business: as in PSD 2.3.4: self-employed entrepreneurs and MSMEs, formal or informal, including cooperatives. Smallholder farms are not counted. Service provider strengthened by the project: a finance institution, business development service provider, input supplier, cluster or business association counted in PSD 2.3.2. Financial services: for example savings, loans, insurance, leasing, mobile money, investment. Formal services come from regulated institutions (banks, regulated microfinance institutions, insurers). Non-formal services come from unregulated entities (savings groups, lending circles, some microfinance institutions). Non-financial services: for example business advice, training, market information, quality testing, certification, inputs and equipment, digital tools. New or improved service: a service the provider developed or changed with project support (a new loan product, a new advisory package, a service extended to a new area or group). Only businesses that use this service are counted, not the provider's whole client base. |
| Indicator Level | Output |
Disaggregation
| Disaggregation |
|
|---|---|
| Measuring Unit | Businesses (each business counted once, even if it uses several services or several providers) |
Contribution To REACH 001, REACH 002 or REACH 003
| REACH 001 | No new people. Owners of businesses that are also in PSD 2.3.4 are already counted there |
|---|---|
| REACH 002 | Owners of businesses that are only in PSD 2.3.1 (they benefit through a provider the project strengthened). Do not add their employees or household members. |
| REACH 003 | No |
Examples of Actvities
The project works with the service providers (PSD 2.3.2). This indicator counts the businesses that then use their new or improved services. When the project delivers the same support directly to businesses, count them in PSD 2.3.4 instead.
Financial literacy training: businesses attending financial literacy courses offered by a supported finance institution or training provider.
Access to microfinance: businesses taking tailored loans or credit products developed with a supported microfinance institution.
Access to impact investment: businesses receiving investment through supported investors or ecosystem actors, for example accelerators.
Savings and credit groups: businesses saving or borrowing through community savings and credit groups formed or strengthened by the project.
Insurance and other financial products: businesses using a new insurance, leasing or mobile money product of a supported provider.
Business development services (BDS): businesses buying business planning, management, marketing or bookkeeping services from a supported BDS provider.
Technology and innovation support: businesses adopting new technologies or digital tools offered by a supported provider.
Market linkages: businesses connected to buyers, suppliers or partners through a supported broker, platform or association.
Legal and regulatory assistance: businesses using registration, licensing or legal advice services of a supported provider or business association.
Networking and peer learning: members of a supported business cluster or association using its new services (market information, joint marketing, quality testing, peer learning).
Inputs and equipment: businesses buying inputs or equipment from a supported supplier that improved its offer, for example processors or beekeeping businesses. Inputs for smallholder farms are not counted here.
Data Collection
| Data Source and Means of Verification | Examples of data sources (depending on project modality):
|
|---|---|
| Measuring Frecuency | Collect data from the service providers at least once a year. Report annually |
| Data Collection Guidance | Agree with each service provider at the start of the support (ideally in the agreement or MoU) which data it will share: the number of business clients that used the new or improved service in the year, new clients separately, by type of service and by who leads the business. Ask for the number of businesses, not the number of loans, products or transactions. |
| Common Challenges | Whole client base reported. Providers often report all their clients. Count only the clients of the service that the project helped to create or improve. Same business, several providers. A business may use services of two supported providers. Where client lists can be compared, count it once. Where they cannot, use the largest provider's figure plus a cautious estimate for the others, and explain it. Formal or non-formal. Classify the provider, not the product: a regulated institution delivers formal services. Data sharing. Providers may not want to share client data. Ask only for numbers, not names, and agree this early. |
How to report
Report the number of businesses that used the new or improved services for the first time in the reporting year. Each business is reported only once during the project; the project total is the sum of the yearly values. Give the results by disaggregation category and name the providers and services included.
PSD 2.3.1 and PSD 2.3.4 can include the same business. Never add the two indicators.
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 |