Ex post evaluation of USAID/BIH"s grant assistance to micro, small, and medium enterprises in BIH (2012–2022) : final report

The purpose of the evaluation was to provide evidence to improve the impact of grants on MSMEs’ business performance and USAID’s grant administration and documentation procedures. The evaluation encompassed seven USAID/BiH Activities implemented during this time frame and provides overall findings about the portfolio of grants. Primary data collection took place from June to October 2023. Secondary data was collected by the evaluation team (ET) from the financial database for registered BiH firms. The evaluation results conclude that grants were generally an effective mechanism for improving MSMEs’ business performance across supported industries. Grants for equipment, training, and certification were effective, whereas the effects of grants for fair attendance were not statistically significant. Grantees shared positive views on USAID’s grant administration procedures, noting that the funds helped them accelerate their investments and improve their business operations and overall image. The evaluation found that micro and small companies need grant assistance more than medium companies. The evaluation concludes that USAID should continue supporting MSMEs through small grants, focusing on export-oriented sectors and companies with value-added products, and startups (micro and small businesses). USAID should consider expected results, sectors, and company size when tailoring the assistance to specific MSMEs’ needs. USAID should consider digitizing its grant application and administration procedures, standardizing rules around site visits and requests for applications, introducing advanced payments, and assisting its grantees in dealing with market disruptions. USAID should develop a comprehensive database with detailed information on its grantees and use it when making funding decisions.