Small enterprise approaches to employment

PES covers the period 9/78-9/82 and is based on an attached special evaluation (XD-AAN-730-A). Overall, both components met their respective objectives, were extremely cost-effective, and generated substantial spin-off benefits through dissemination of results; contractors operated on a timely basis and developed innovative research techniques. Phase I of the program for investment in small capital enterprise sector conducted 23 case studies of successful SB assistance programs in Africa, Asia, and Latin America; prepared draft case study reports and a synthesis presenting a replicable approach for increasing SB assistance (the latter was discussed by A.I.D. and other participants at a 1980 workshop); and produced and disseminated 700 copies of a final report. The latter concluded, inter alia, that effective programs tend to: be well-designed in terms of staffing, outreach, beneficiary selection, credit availablity, etc.; require an adequate environment (e.g., supportive government policy, a growing economy, etc.); and work best through existing institutions. Weaknesses included: inconsistency between the synthesis and the case studies; the final report"s extensive length and limited executive summary; and failure to disseminate the report over a long enough period. The housing and employment component conducted 2-month, onsite studies (including sample surveys of builders, construction workers, and households) of the effect of urban housing schemes on employment generation in Sri Lanka, Pakistan, Zambia, Kenya, Tunisia, and Colombia in preparation for a large-scale 1980 Peruvian study. The subsequent 21 published reports (10 on Peru) presented, among other findings, an equation which estimates the employment generated for any type of project by any type of enterprise. However, the component failed to link its findings to specific housing projects (e.g., by producing an easily understood handbook for housing planners), to conduct field demonstrations, or to establish a steering committee. Recommendations are included.