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CROSS-COUNTRY WORKSHOP FOR IMPACT EVALUATIONS IN FINANCE AND PRIVATE SECTOR DEVELOPMENT Dakar, February 1-4, 2010. Country: Mauritius Manufacturing and Services Development and Competitiveness Project. Mr C. Charitar-Principal Financial Analyst
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CROSS-COUNTRY WORKSHOP FOR IMPACT EVALUATIONS IN FINANCE AND PRIVATE SECTOR DEVELOPMENT Dakar, February 1-4, 2010 Country: Mauritius Manufacturing and Services Development and Competitiveness Project Mr C. Charitar-Principal Financial Analyst Mr. N. Raffique (On behalf of the MSDC Team)-Financial Management Analyst Mr A.Ramdhany- Financial Management Analyst
PROJECT OBJECTIVES Title • Support enterprise growth • Competitiveness • Employment creation in manufacturing & services sectors.
PROJECT DESCRIPTION Title • Improving access to Quality Development Services (BDS ) • Strengthening Institutional and Policy Support for existing Public – Sector SME related institutions. • Increasing access to finance to credit constrained businesses.
PROJECT COMPONENTS Title • Improving access to Quality Business Development Services (BDS) • specialized skills and training • Upgrading technology • Standards & certification • marketing research
PRIORITIES FOR LEARNING: INTERVENTIONS Title • Cost sharing or matching grants – to buy specialised outside expertise • To whom ? • T0 any commercial activity contributing to the economy . • Firms with sales of $160,000 USD and above • Average grant size of $20,000 USD • Financial services and trading oriented to the domestic market are expressly excluded.
EVALUATION QUESTIONS Title • How much do the matching grants increase turnover? • Do the grants lead to jobs creation, and if so, what is the gender mix of the jobs created? • Which new business services do SMEs demand? Are they activities with spillovers for society and are they ones they wouldn’t have done without grants? • Which firms apply for matching grants? • How long does it take firms to recoup their investments in their share of the match?
EVALUATION DESIGN Title • 500 SMEs over 4 years • Introduce in a staggered fashion, with limit of 75 in round one, limit to be decided in round two, etc. • Program is promoted heavily in year one, and we hope to get more applicants than the quota • Then treatment group will be randomly chosen from applicants in first year, those who aren’t chosen become control group (note they are eligible to apply again in round 2
SAMPLING AND DATA Title • Firms self-select into applying from the general population – we can use Enterprise Surveys and other Government data to compare those who apply to the average firm • Application form contains baseline data on firm sales, employment, owner characteristics (GENDER), etc. • Administrative tax records on sales are also available both before and after • Firms receiving grants will also give quarterly updates • Follow-up survey of firms in year 3, independently done by contracted survey firm, not linked to administrative agency • End year survey at year 5
TIMELINE FOR IMPACT EVALUATION Title • In effect within 6 months from now • Application forms invited soon, and lottery then done • First grants given out, and processes piloted and databases built • Depending on initial level of applications, targets will be reviewed and quota and timing for round 2 set. • Survey at the end of year 3 and end.
IMPACT EVALUATION TEAM: STAFFING Title • Mauritius Business Growth Scheme Unit • Establishment of a Monitoring & Evaluation Unit • Outsource the survey • Project Coordinator from WB side to be provided and collaborate with MBGSU
BUDGET Title • Project has budgeted for implementation costs including promotional activities to advertise the project. It also has budgeted for follow up surveys • Only additional budget requirement is funding for the project coordinator (which WB will fund)
