Final evaluation and sustainability plan for the Swaziland business management extension program : final report

A financial sustainability plan for BMEP is included in the evaluation. The BMEP provides small enterprise training and extension services, and also has a small credit component. In the first two areas, BMEP largely met the requirements of the 1992 revised Cooperative Agreement with USAID. Between 10/1/92 and 8/26/94 BMEP conducted 7 full-time training programs for 104 people (65 men and 39 women), 44 of whom were active extension clients of BMEP. In addition, BMEP's three extension officers each attained the required 20 clients, and it is estimated that 100 clients were reached over a 2-year period. On the negative side, BMEP's credit portfolio was unable to meet the standards established for its performance as to either size or quality, and BMEP's training program is not performing in a satisfactory manner and is grossly underutilized, even though training is considered a key element of the program. A financial sustainability study suggests that by 1997 BMEP could support a little more than 50% of its recurrent expenses out of internally generated income. As a result, BMEP will require a subsidy of 40-45% over the long term. Although BMEP faces a severe challenge in attaining institutional sustainability, the organization starts from a solid base. It has a well-respected director, an energetic board of directors, and a reputation of providing quality business advisory and training services to a distinct market segment. It is also capable of generating significant revenues even though it has not previously provided services strictly on a fee-for-service basis. In addition, the fact that BMEP will continue to rely on donor funds should not pose a problem, since BMEP is serving a market that is of interest to local, regional, and international donors. Increasing board size and sectoral diversity coupled with training and deep involvement in the strategic and marketing planning processes will be a major step toward BMEP's attainment of its goals. The organization's market and financial sustainability will be possible with staff realignment, further development of technical skills, along with slight modifications to product content and delivery, and a new attitude toward attracting clients.