Review of impact information systems of NGO microenterprise programs

First, it reports on a survey of organizations belonging to the Small Enterprise Education and Promotion Network (SEEP); the purpose of the survey was to identify the types of impact information systems in use or development and to review their main features and utility. Impact information systems were broadly defined to include the following: (1) a management information system (MIS) or a separate impact tracking system with standardized indicators for all projects; (2) regular impact monitoring without a standardized set of indicators; (3) a loan tracking system that can partially serve the purpose of impact assessment by allowing comparisons of data from initial applications for credit and subsequent applications by the same client; (4) periodic impact assessments conducted for all major projects as part of evaluations; and (5) ad hoc special studies conducted at irregular intervals for selected projects only. The survey found that impact information systems are a relatively new phenomenon among NGOs and PVOs. There was considerable variation in the types of impact considered (economic, social, environmental, and institutional), level of analysis (enterprise, households, or communities), and the ways in which data was gathered. Quantitative methods were favored to track impacts, but some organizations also used qualitative methods. While there was strong agreement on the importance of impact assessment and most organizations gathered some information on impact, many respondents reported more weaknesses in their organizations" information systems than strengths. Several organizations were in the process of revising their systems. The second part of this study compares key aspects of the impact information systems of a subset of SEEP members and several other organizations outside of the network. These systems were selected because they were thought to be representative, relatively well-developed, or instructive for other organizations seeking to establish or improve their systems. The systems were classified into three categories: (1) loan tracking systems, (2) comprehensive impact assessments, and (3) other specialized systems. The uses, breadth, and rigor of the systems and the types of impact indicators used were compared. To offer guidance to NGO and PVO microenterprise programs, the study concludes with recommendations on the importance of impact information systems, balancing costs and requirements, selection of indicators, data collection processes, data analysis and reporting, and staffing and training for implementation of the systems. Includes references. (Author abstract)