USAID/PVC Matching Grant Evaluation Series:
Capacity Building for 
Microenterprise Development
In
Mexico, Romania and U.S. Headquarters
Matching Grant FAO-A-00-99-00055-00 between 
Enterprise Development International and USAID/PVC
February, 2002
Conducted under USAID/CDIE Evaluation Indefinite Quantity Contract
# AEP-I-02-00-00024-00, Task Order 2
Evaluation team members:
Lawrence Locklin (Enterprise Development International)
Harry Carr (MSI, Team Leader)
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc i
Evaluation of “Capacity Building for Microenterprise Development in 
Mexico, Romania and U/S. Headquarters”
Matching Grant FAO-A-00-99-00055-00 between 
Enterprise Development International and USAID/PVC
TABLE OF CONTENTS
List of Acronyms Used..........................................................................................................................iii
Evaluation Identification Sheet............................................................................................................iv
1.0 Executive Summary* .......................................................................................................................1
1.1 Overview..............................................................................................................................1
1.2 Key conclusions and recommendations.................................................................................1
1.3 Acknowledgements...............................................................................................................3
2.0 Evaluation Methodology and Team Composition*.........................................................................4
3.0 Matching Grant Background* ........................................................................................................6
3.1 Historical & technical context and partners* .........................................................................6
Background to Grant.............................................................................................................6
Project Context - Mexico ......................................................................................................6
Project Context - Romania ....................................................................................................6
Methodology, Approach, Strategy and Target Groups...........................................................7
3.2 Project goal, objectives, and major hypotheses to be tested*..................................................7
4.0 Purpose of the Evaluation*..............................................................................................................9
5.0 Program Implementation Evaluation Questions...........................................................................10
5.1 The Detailed Implementation Plan ......................................................................................10
5.1.1 Meeting DIP targets and data accuracy....................................................................10
5.1.2 Quality of DIP and degree of success in implementation*........................................11
5.1.3 Familiarity with DIP and design* ............................................................................17
5.1.4 Major successes and shortfalls in implementation*..................................................17
5.1.4 Impact Results* ......................................................................................................19
5.2 Assessment of project model and hypotheses ......................................................................19
5.2.1 Project hypotheses articulated in CA* .....................................................................19
5.2.2 Replication and scale-up of approaches in project area or elsewhere* ......................20
5.3 Advocacy under the project.................................................................................................21
5.3.1 Advocacy activities and impact* .............................................................................21
5.3.2 Partner/PVO roles in advocacy* -- N/A...................................................................22
5.4 Implementation Lessons Learned ........................................................................................22
6.0 Partnership Questions ...................................................................................................................23
6.1 Analysis of Partnership Schemes*.......................................................................................23
6.2 Measuring Institutional Capacity*.......................................................................................23
6.3 Constraints to Partnership* .................................................................................................26
6.4 Information Technology* -- N/A.........................................................................................26
6.5 Use of local networks and service organizations* -- N/A.....................................................26
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.docii
7.0 Program Management...................................................................................................................26
7.1 Strategic Approach and Program Planning* ........................................................................26
7.2 Country Initiatives* -- N/A .................................................................................................27
7.3 Conflict Management* -- N/A.............................................................................................27
7.4 Monitoring and Evaluation*................................................................................................27
7.5 Overall Management*.........................................................................................................28
7.6 Sustainability* ....................................................................................................................30
7.6.1 Overall sustainability survey* -- N/A ......................................................................30
7.7 Financial Management ........................................................................................................30
7.7.1 Effectiveness of financial management*..................................................................30
7.7.2 Leveraging other donor funds* -- N/A.....................................................................31
7.7.3 Cost effectiveness of technical approach*................................................................31
7.7.4 Repercussions of “matching” requirement on program* ..........................................32
7.8 PVO’s Information Management*.......................................................................................32
7.9 Logistics* -- N/A ................................................................................................................33
7.10 Project Supervision*.......................................................................................................33
7.11 USAID Management* ....................................................................................................33
8.0 Conclusions and Recommendations* ............................................................................................34
Annexes................................................................................................................................................36
Annex A: Key Events Timeline* .........................................................................................................37
Annex B: Detailed Implementation Plan Table* ................................................................................39
Annex C: Evaluation Scope of Work * ...............................................................................................48
Annex D: Solidarity Group Summary Information for Avance Chalco ............................................58
Annex E: Client Summary Information for HIRO.............................................................................59
Group Summary Information for HIRO............................................................................................60
Annex F: List of Persons Interviewed .................................................................................................63
Annex G: Simplified Activity and Financial Reports.........................................................................64
Annex H: EDI Criteria for International Programs and Partnerships..............................................70
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc iii
LIST OF ACRONYMS USED
AMEXTRA Asociacion Mexicana de Transformacion Rural y Urbana
(Mexican Association for Rural and Urban Transformation)
BHR Bureau of Humanitarian Relief
CA Cooperative Agreement
DOSA Discussion-Oriented Organizational Self-Assessment
EDI Enterprise Development International
LNGO Local non-governmental organization
HIRO Help Integra Romania
MEDA Mennonite Economic Development Associates
NGO Non-governmental organization
NICRA Negotiated Indirect Cost Rate Agreement
OI Opportunity International
PVC Private Voluntary Cooperation
PVO Private Voluntary Organization (usually U.S.)
TBF Transylvania Business Forum
USAID United States Agency for International Development
WOF Women’s Opportunity Fund
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.dociv
EVALUATION IDENTIFICATION SHEET
PVO name Enterprise Development International
Matching Grant Title Capacity Building for Microenterprise Development 
in Mexico, Romania and U/S. Headquarters
Cooperative agreement number FAO-A-00-99-00055-00
Amount of Grant $ 649,990
Period of Grant 1999 and 2002
Any (cost/no cost) extensions? No
Current status of MG In final stages
USAID/PVC Grant Officer (s) Tom Kennedy
Technical area of grant Microenterprise development
Date of the evaluation February, 2002
Countries of program activity Mexico, Romania and U.S. Headquarters
Country programs evaluated Mexico, Romania and U.S. Headquarters
Evaluation Team Members (organization) Harry Carr, MSI
Lawrence Locklin, EDI
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 1
Evaluation of “Capacity Building for Microenterprise Development in
Mexico, Romania and U/S. Headquarters”
Matching Grant FAO-A-00-99-00055-00 between The Nature Conservancy and USAID/PVC
1.0 EXECUTIVE SUMMARY*
1.1 Overview
Enterprise Development International (EDI) has the goal of providing increased capacity to its partner
NGOs in Mexico and Romania to support the delivery of sustainable credit with training to poor women. 
Working with a three-year Cooperative Agreement for $649,990 initiated in September, 1999, EDI is
strengthening its headquarters capacity as well as the capacity of its partners in Romania – Integra and
HIRO (Help Integra in Romania) – and Mexico – AMEXTRA (Mexican Association for Rural and Urban 
Transformation) and Avance Chalco. Solidarity groups of primarily women entrepreneurs are offered
saving and borrowing services in Mexico, while in Romania primarily women clients are offered business 
training and loans. 
Management Systems International (MSI) was contracted by PVC to conduct this summative evaluation,
which was carried out between late September and early February, 2002 by a team comprised of one MSI 
evaluation specialist and one EDI representative. Team members reviewed relevant documents and
interviewed key informants at EDI headquarters in Fairfax, Virginia as well as the staff and board
members of the partner organizations in Mexico and Romania. 
EDI was new to USAID as a grantee prior to this Cooperative Agreement (CA). The Evaluator concludes 
that PVC has had a successful Matching Grant experience with EDI. Its goals fit very well with the
Matching Grant program’s micro-enterprise development goals, and its focus on women as a means of
sustaining family income fits well with USAID’s gender goals. By the end of its second of three years,
EDI’s two programs have reached their targets for operational sustainability and it is possible that the
Mexico program will be 100% operationally sustainable before the end of the CA. It should be noted that 
this success in operational sustainability comes on top of early portfolio-at-risk problems for each partner, 
which were overcome quickly. The conclusion can be made that PVC has found a new PVO partner to
work with in achieving its goals.
1.2 Key conclusions and recommendations
Conclusions:
(a) Almost half – 47% (24 out of 51 indicators) of Year Three, end-of-project, targets were
already met, 16% (8 out of 51 indicators) of Year Two targets were not met and only 6% 
-- 3 indicators – represent a problem for EDI in Year Three;
(b) Regarding program efficiency, Avance’s and HIRO’s low reported performance on these
indicators is probably overstated, that is, in the cases of both Avance and HIRO the real 
“inefficiencies” were in Year One and they have, since then, been overcome. In both
cases, however, the problem loans made in Year One have created a rolling effect
through Year Two. This is reflected in under-achievement in that year for efficiency
measures.
(c) EDI partner managers do not appear to use the DIP and its components as a guide to
management or source of modifications in the program. EDI Headquarters, however,
does utilize reported results against indicators as a guide to oversight and supervision vis 
a vis its partners.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc2
(d) Regarding impact for the Matching Grant Program, out of twelve indicators which could
be considered as measuring impact, nine have been achieved for Year Two, evenly
distributed between HQ, Avance Chalco and HIRO objectives.
(e) EDI is a faith-based private voluntary organization. There is a close, mutually supportive
bond of Christian values between EDI and all of its partners. The resulting trust among
partners increases program effectiveness through better coordination and collaboration. 
There is high motivation among EDI and partner staff for achieving real program impact. 
Staff dedication reinforces client outreach and client-loan officer relationships. The
resulting amount of time and assistance given by loan officers to their clients could be a 
key determinant of the program’s success. 
(f) In the course of the Matching Grant implementation and, particularly, in response to
problem loans in Year One, EDI has modified its practice in small degrees away from the
very poor and women in order to accommodate the program’s needs for viability and
sustainability. The evaluators observed that it is sometimes difficult for all partners to
maintain a balance in loan recipient criteria such that the integrity of the original
development hypothesis is guarded. In most cases EDI and its partners tend toward the
developmentally needy, but there is an attraction towards the safer loans with more
substantial businesses in order to protect portfolio viability.
(g) Even though advocacy and networking with other NGOs for the sake of lobbying are not 
objectives of the CA, each local partner has found it necessary and effective to join other 
similar entities and associations either to increase their understanding of national and
regional issues of importance and/or to advocate certain positions before government.
This has been particularly salient for each partner regarding national registration laws and 
regulations.
(h) In the partnership arrangement for the EDI Cooperative Agreement, EDI relates primarily 
with AMEXTRA and Integra, the sponsoring institutions. Supervision of the local
partners, Avance and HIRO, is left to the sponsoring institutions. The oversight and
supervision of local partners, however, varies in effectiveness. The Integra Program
Advisor, who is partially paid for by EDI under the Matching Grant, makes many visits, 
has adequate communication and gives good direction to HIRO. AMEXTRA appears to
leave Avance more on its own, Avance having more contact with EDI directly. EDI has
tended to fill the gap in Mexico by relating more directly with Avance for supervision.
(i) The increased ability of EDI to plan for the future, reinforced by significantly improved
financial and administrative management systems allowing for better reporting and
projecting, has been so remarkable that it is referred to among the significant successes of 
the Matching Grant.
(j) One of EDI Headquarter’s objectives is to provide its implementing partners with
effective management information systems (MIS). EDI has had particular difficulty in
identifying an appropriate MIS for Avance Chalco; one that meets all its program
requirements. This delay has stretched the institutional capacity of Avance, although to￾date the problem has been managed. However, the rapidly growing size of Avance’s 
portfolio makes solution of this problem even more urgent. EDI believes it has, as of the
writing of this evaluation, found the appropriate system and is negotiating with the
vendor for its use in Mexico.
(k) The progress reporting consisting of monthly reports on program issues, loan status and
financial management is appropriate in content and timeliness. EDI has been able to both
note and follow problem issues, operations and financial performance.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 3
Recommendations:
(a) EDI should make every effort to ensure an adequate MIS software for Avance Chalco as 
soon as possible. The goal of its negotiations is to obtain such a software package –
COBIS – in early 2002. Contract negotiations are underway at the writing of this report
and the contract should be signed in April.
(b) EDI should try to instill more of a sense of ownership on the part of its partners in the
DIP and their respective parts of it, particularly their performance indicators, by doing the 
following:
fi Involve partners more actively in the program design, particularly goal and target
setting, so that partners take more ownership in plans and 
fi Perhaps build into the budget an “all-partner manager” multi-day workshop for DIP
formulation and team building, as well.
(c) There is an important lesson for PVC in the effect on program impact provided by the
sharing of basic values and operating principles as EDI and its partners do. In their case
the bond is one of shared Christian values. It could be that similar common bonds exist or 
could be fostered among PVOs pursuing objectives in human rights, humanitarian
assistance, child survival and disaster relief.
(d) EDI should be attentive, in its program monitoring, of the extent to which its partners are
accommodating viability and sustainability to the expense of its mission of assisting
women and the very needy. This can be done in several ways:
fi Definition of explicit performance indicators designed to track the socio-economic 
conditions of its borrowers and clients as well as their businesses;
fi A careful re-consideration of performance monitoring results, even including the
indicators EDI now has, with the purpose of maintaining its desired balance between
a viable and sustainable program and one that serves its mission as closely as
possible.
(e) Because EDI is responsible under the CA for improved capacity in the local partners,
EDI should be particularly attentive to the guidance, support, and assistance they may
need and may not be getting from their sponsoring institutions. Particular areas include:
fi Local staff training;
fi Local board training; and
fi Client training.
1.3 Acknowledgements
The Evaluation Team Leader would like to acknowledge the Headquarters staff of EDI and the staffs of
Avance Chalco in Mexico and HIRO in Romania whose names are given in Annex F. They provided great
support, assistance and availability for discussions and interviews with the Team Leader. Moreover, their 
participation in the evaluation by providing the necessary data, interpretations and clarifications added
value to its conclusions and recommendations. In all cases staff not only participated willingly and openly 
but also incorporated some recommendations into their operations even in the course of the evaluation. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc4
2.0 EVALUATION METHODOLOGY AND TEAM COMPOSITION*
Approach:
The overall approach to this evaluation was participatory. The evaluation was carried out by an MSI
Team Leader/Evaluation Specialist in participation with (during the Mexico phase) the EDI Program
Manager. The evaluation methodology involved review of program documents, information gathering
interviews with program and partner staff both at headquarters and in the field sites (Romania and
Mexico), field visits for data gathering, interviews with program clients and program activity observation. 
Data gathered at headquarters and in the field consisted of secondary information in program reports,
correspondence and records as well as primary data gathered through protocol guided interviews and
observation of representative and stratified clients and client groups. Evaluation tasks were undertaken
during the following five major phases:
Phase One:
Preparatory work in Washington - Half-day Team Planning Meeting with EDI and USAID officials
(September 27) and document review in Washington, DC (September 26 to October 4).
Phase Two:
Visit to EDI Headquarters – The Team Leader visited EDI Headquarters in Fairfax, Virginia on two
occasions (November 8 and 20 – 21) to interview EDI staff and gather data and additional documents.
Phase Three:
Field visit to Mexico – The Team Leader, accompanied by the EDI Program Manager, visited the
AMEXTRA/Avance Chalco site in Mexico to interview partner directors, board members and staff, visit
and observe client solidarity groups, and review data and gather documents (November 10 to 17).
Phase Four:
Field visit to Romania – The Team Leader visited Oradea, Romania and the HIRO site to interview the
Executive Director, Program Director and staff, to visit program client borrowers, to review data and
gather documents (January 12 to 15).
Phase Four:
Preparation/submission of draft report (January 15 to 31). Incorporation of USAID and EDI comments,
and production of final report.
As indicated in the various sections of this report, data were verified through the review of key
documents, observation and interviews with relevant individuals and groups (Annex F provides a list of
persons contacted). Findings are based on the information collected, while conclusions and
recommendations are the opinions and contributions offered by the evaluation team. 
Report Format:
It should be noted that the team was asked to use a pre-determined format for the preparation of this
report. That is because this is one of a set of some 12 final evaluations of Matching Grant for which MSI 
was contracted by USAID/PVC. Therefore, to facilitate possible future study at the level of the overall
PVC grant program, it was determined that all reports would employ the same sections and sequence.
Non-applicable sections are marked simply “N/A.”
Team Composition:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 5
Based on the Scope of Work (see Annex C), the evaluation team was comprised of the following
members:
v Harry Carr, an Evaluation Specialist with thirty years of years of economic development consulting 
experience most of which has been spent in evaluation and the related activities of strategic planning, 
performance monitoring and organizational development. 
v Lawrence Locklin, EDI’s Program Director, a position created by the matching grant, Mr. Locklin 
has worked in small and medium enterprise development in economic development circumstances
since 1993.
The primary limitation of the evaluation was the need to re-schedule the Romania field trip late in the
process due to international security reasons prohibiting necessary country clearance. This postponement
reduced the amount of time available to analyze, absorb and write-up the data and findings.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc6
3.0 MATCHING GRANT BACKGROUND*
3.1 Historical & technical context and partners*
Background to Grant
Enterprise Development International was awarded its current three-year Matching Grant, the
organization’s first, in September 1999. The three components of the grant are Enterprise Development
International’s headquarters office in Fairfax, Virginia, and partners in Mexico and Romania.
Since the inception of the grant, Enterprise Development’s Matching Grant partners, AMEXTRA in 
Mexico and Integra in Eastern Europe, have each created subsidiary organizations specializing in 
microenterprise development. AMEXTRA created Avance Chalco to serve the residents of the Chalco 
Valley outside Mexico City. Integra created Help Integra Romania (HIRO) to serve women in Oradea, 
Romania. Through the grant, Enterprise works to strengthen its ability to support sound microfinance 
services and to build the institutional capacity of Avance Chalco and HIRO to provide microenterprise 
development services.
Project Context - Mexico
The project is located to the southeast of Mexico City in the State of Mexico, within the larger 
metropolitan area that Mexico City encompasses. The project serves the Valley of Chalco, specifically the 
municipalities of Ixtapaluca, Chimaluacan, La Paz, Chalco, Valle de Chalco, Chicoloapan and 
Nezahuayacoyotl, which contain more than 1 million inhabitants. The population is made up of first and 
second generation migrants from the countryside who have settled in the area because they are unable to 
afford living in Mexico City proper. Some communities now have regular services such as water, 
drainage and electricity, while others have simply improvised these. The adult population has, on average, 
a 6th grade education, and 15% are illiterate. 
Project Context - Romania
Oradea is located in Bihor County and has a population of 222,000 out of 22 million people living in the 
country of Romania. Even though it is considered one of the most significant economic, social and 
cultural centers in northwestern Romania, it is worse (as determined by the baseline work) than the 
national average in several key economic indicators:
· lower average monthly salary
· higher unemployment
· a high percentage of women in the “at risk” category
· a low number of courses and participants in programs for retraining or providing additional training 
for unemployed workers
In addition, baseline work determined that Bihor county is characterized by a high percentage of women 
that would like to own their own business.
Although the vast majority of the companies in Bihor County are privately owned, they operate primarily 
in the trade and services sectors. Government owned companies are still primarily accountable for the 
industrial output (which accounts for 55% of the county GDP) in the county.
The primary industry for Oradea and Bihor County is agriculture. Much of this sector is characterized by 
small farms that are unable to support many employees, thus there is need for new small businesses in the 
service or light industry sector that can develop to employ additional employees. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 7
The educational opportunities under the communist regime were abundant and have continued to the 
present even though the funds available for programs and educators have not kept pace with inflation. 
Therefore, the quality and cost (direct and indirect) of higher education discourages many from 
continuing their studies. “Retraining” programs for the unemployed are also not very prevalent (currently 
only four programs are in existence), thus do not provide the opportunities for enabling the unemployed 
to improve their chances for employment.
Methodology, Approach, Strategy and Target Groups
The methodology employed at the US PVO level is for Enterprise Development International to partner 
with independent local microenterprise-development organizations to build their institutional capacity by 
providing them with training, technical assistance and funding. In Mexico, AMEXTRA’s subsidiary, 
Avance Chalco uses a cooperative organizational structure to provide savings-led microfinance services 
to poor residents of the Chalco Valley outside Mexico City. Avance Chalco also partners with a local 
organization specializing in training to offer its clients regular business training opportunities. In 
Romania, Help Integra Romania (HIRO), a subsidiary of the Integra Foundation, offers intensive business 
training, followed by business plan assistance and loans to the poor women of the city of Oradea. 
Summary data on the clients of Avance Chalco and HIRO are shown in Annexes D and E. They provide a 
representative portrayal of EDI’s partner client base.
3.2 Project goal, objectives, and major hypotheses to be tested*
EDI’s program goal is to enhance Enterprise Development International’s capacity to support its partners, 
and to improve the income, social status, and welfare of very poor residents of the Chalco Valley outside 
Mexico City, and in Oradea, Romania by enabling them to support themselves.
EDI’s overall objectives in its USAID funded MG program are 1) to improve Enterprise Development’s 
technical assistance, training, and capacity building services to its network of partners, and 2) to develop 
the capacity of Enterprise Development’s partners in Mexico and Romania to achieve increased outreach 
and to work toward operational self-sufficiency. EDI works to achieve these objectives through three sets 
of subordinate objectives focused on its Headquarters and its programs in Romania and Mexico.
The following table summarizes the hierarchy of objectives, as presented in the Detailed Implementation
Plan (DIP) and amended, in the case of Headquarters, in July 2000:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc8
Table 3.2: Project Hierarchy of objectives
Goal:
Headquarters:
Objective 1: Board Development: Equip local boards to improve their capacities in 
organizational vision, leadership, oversight, and representation
Objective 2: Partner Staff Training: Train local staff in all aspects of program implementa￾tion, management, evaluation, growth, and accountability (including impact 
assessment)
Objective 3: Client Training: Equip partner staff to adapt and use appropriate training 
materials and methodologies for their clients
Objective 4: Partner MIS: Equip partners with effective management information systems
Objective 5: Organizational Assessment: Enable partners to accurately and constructively 
assess their own organizations and plot a course for improvement based on 
results of the assessment
Objective 6: Program Officer: Add to staff a Program Officer who will provide high quality 
technical services to partners and backstopping in home office
Objective 7: VP Technical Services: Expand purview and capacity of VP Technical 
Services to include broader array of partner services and development of home 
office tools
Objective 8: Government Accounting: Develop staff expertise in accounting and reporting 
for US government grants
Objective 9: Grants Management and Program Monitoring: Develop staff expertise and 
improve internal systems for major grant management and program monitoring
Objective 10: Computer Network: Improve home office computer network to better serve 
staff need
Objective 11: Strategic Planning: Develop five-year corporate strategic plan to set direction 
for the organization
Objective 12: Sustainability: Improve home office financial sustainability
Objective 13: US Public Awareness: Increase US public awareness of the work of EDI
Romania:
Objective 14: Establish Integra institutional capacity to deliver microenterprise credit and 
training services in Romania
Objective 15: Achieve significant outreach among low-income women
Objective 16: Implement successful business training
Objective 17: Achieve program efficiencies
Objective 18: Progress toward sustainability of the MED institution
Objective 19: Achieve significant impact
Mexico:
Objective 20: Expand AMEXTRA’s institutional capacity to deliver MED services
Objective 21: Establish significant program breadth
Objective 22: Establish significant program depth
Objective 23: High Program Efficiency
Objective 24: Progress toward sustainability
Objective 25: Achieve significant impact
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 9
4.0 PURPOSE OF THE EVALUATION*
The specific purposes of the evaluation were the following: 
· To document the achievements of the EDI program against its objectives and 
· To report on progress made towards specific PVC Matching Grant program objectives related to
partnership relations and aspects of program management, including: 
fi Sustainability;
fi performance monitoring;
fi financial management;
fi information management; and 
fi relations with USAID management.
The evaluation is envisioned to be used in the following ways: 
· To tell PVC, and EDI itself, how EDI and its partners have performed on these dimensions in order to 
provide guidance for each in the preparation and review of the second EDI grant application and also 
· To tell PVC lessons that have been learned by EDI in the course of the MG, again on the dimensions 
listed above, so that PVC might adjust its procedures and policies accordingly.
(See Annex C for the evaluation scope of work.)
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc10
5.0 PROGRAM IMPLEMENTATION EVALUATION QUESTIONS
5.1 The Detailed Implementation Plan
5.1.1 Meeting DIP targets and data accuracy
Annex B contains detailed information on EDI’s implementation of the CA and its objective. It shows, 
particularly, data on EDI’s accomplishments against its performance indicators. The findings, conclusions 
and recommendations presented below refer to those data.
Findings:
(a) As shown in Table 3.2 above, EDI has a total of 25 objectives divided over three
categories: Headquarters Improvement; Avance Chalco Performance and HIRO
Performance:
fi For Headquarters Improvement, EDI has 14 objectives in its planning matrix and 19 
performance indicators of which –
· Two indicator targets were not reached for Year 2;
· Six indicator targets for Year 2 were reached;
· Ten indicator targets for Year 3 were reached; and
· One indicator for which target data were not collected.
fi For Avance Chalco/AMEXTRA EDI has 6 objectives and 17 performance indicators 
of which –
· Six indicator targets were not reached for Year 2;
· Two targets for Year 2 were reached;
· Seven indicator targets for Year 3 were reached; and
· One indicator was removed and data for one target were not collected.
fi For HIRO/Intrega EDI has 6 objectives and 17 indicators of which –
· Eight indicator targets for Year 2 were not met;
· Two targets for Year 2 were reached; and
· Seven targets for Year 3 were met.
(b) In summary, regarding EDI’s reaching its performance indicator targets:
fi 16 % were not reached
fi 78 % were reached in Year 2 for either Years 2 or 3
fi 6 % could not be counted
Conclusions
(a) Targets which were not met and which present a problem for EDI – 3
fi Lack of an adequate MIS for Avance, reflected in two indicators
fi HIRO’s underachievement in number of active borrowers
(b) Targets not met but which should be or have been either eliminated or reduced -- 4
(c) Targets which were not met but which EDI is confident will be met – 6
(d) Targets which were not met and for which EDI has justification -- 4
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 11
Recommendations
(a) As is discussed below in Sections 5.1.4 and 6.4, EDI should make every effort to ensure
adequate MIS software for Avance Chalco as soon as possible. The goal of its
negotiations is to obtain such a software package – COBIS – in early 2002. Contract
negotiations are underway with the writing of this report.
(b) HIRO’s failure to reach its target in number or borrowers could, indeed, be very good
management as a response to early procedures which allowed unfeasible loans to be
made. Since this is potentially a serious problem and it is reflected in HIRO
underachievement for other targets, EDI should pay attention to the indicator’s results
and assure itself that HIRO is doing something more to bring its numbers up.
5.1.2 Quality of DIP and degree of success in implementation*
Findings:
Regarding Avance Chalco’s compliance --
(a) At the end of its second year, the EDI program in Mexico has achieved most of its Year 
Two targets and almost all of its final targets. (See Annex B.) All indicators for 
Objectives 1 and 5 have been achieved. All but one indicator for Objectives 2, 3, and 6 
have been achieved. The first indicator for Objective 2 has all but been reached, with 
1,261 clients saving against a targeted 1,350. (The DIP planning matrix calls this 
indicator “number of persons receiving training and saving.” This is because originally, 
the vision was to provide business training to every client. See (c) directly below for an 
explanation of this change.) The first indicator for Objective 3, regarding program depth, 
looking for 95% participation by women among the client population, has been dropped, 
as was reported in the Year One Progress Report. EDI reports that the second indicator of 
Objective 5 percent client retention – was, “included in the planning matrix in error.” 
This effectively leaves Objectives 2, 3 and 5 achieved. Neither indicator of Objective 4 
for Year Two has been achieved.
Regarding HIRO’s compliance --
(b) The same indicator has been eliminated from the HIRO planning matrix for the same
reasons. In the case of HIRO, however, 97% of its clients are women.
(c) By the end of Year Two in Romania, eight out of its 18 indicators, including number of
women borrowers, have not been reached, two of its Year Two targets have been
achieved and 10 indicator Year Three targets have been reached.
Regarding EDI Headquarters compliance --
(d) EDI has failed to achieve two of its 19 HQ improvement indicator targets. The single
indicator target has several components, among which providing partners with adequate
MIS has not been achieved for Mexico. Targets for establishing an endowment were not 
achieved in Year Two because of the events of September 11 and the impact on the
Mexican economy. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc12
Conclusions:
(a) The elimination of the indicator for women participation in the program has a certain
logic. What in fact was eliminated was the requirement that women be targeted
exclusively as clients. Men can now be members. AMEXTRA felt that if there was bias
for women, then male borrowers might simply force their wives into enrolling while they, 
the men, actually made the saving and loan decisions. There is heavy participation of
women in the program and will be almost by its nature. More importantly almost all
Cashiers, or group accounts keepers and money collectors, are women who play a crucial 
role in the groups and who are a significant element in the success or failure of a group.
(b) The training of clients in Mexico has changed from the DIP. Originally, all clients were
slated to receive business training. Providing business training for all clients, however,
proved to be expensive, a poor response to clients needs, and a poor use of many clients’ 
time. Therefore it was decided that it would be better to provide business training on a 
demand basis, and periodic business seminars were planned. Three business seminars
were conducted by Avance Chalco, reaching a total of 106 people. It was then decided to 
partner with MicroMEDA Mexico, an organization which specializes in business training 
for microenterprises in the Chalco Valley. These courses began in November 2001. (See 
the Year Two Report for a description of MEDA’s methods.) This accounts for Avance’s 
under-achievement on the first indicator for its Objective 3.
(c) In Romania, the HIRO staff was trained by Intregra in its client training and subsequently 
has used it, accounting for the under-achievement on Objective 3.
(d) The evaluator concludes, regarding program efficiency, that Avance’s and HIRO’s low
reported performance on these indicators is probably overstated, that is in the cases of
both Avance and HIRO the real “inefficiencies” were in Year One and they have, since
then, been overcome. In both cases, however, the problems loans made in Year One have
created a rolling effect through Year Two. This is reflected in under-achievement in that 
year for efficiency measures.
Recommendations:
(a) EDI has identified the elimination of the women’s training indicator for Mexico noted
above in its Year Two Report. However, the same elimination in the case of HIRO’s
planning matrix has not been reported. EDI should report it and any other changes.
(b) Because of the possible overstatement of inefficiencies in Mexico and Romania, EDI
should pay extra close attention to these indicators and Avance and HIRO performance
on them in Year Three to make sure that partners’ performance does, indeed, “catch up”.
Highlights of implementation experience, based on review of the DIP, are summarized Table 5.1.2 on the
following pages.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc13
Table 5.1.2 Objectives and Outcomes Matrix
Objective Organizational Level Key Outcomes Successes Constraints
Headquarters
Objective 1: Board Development: Equip local 
boards to improve their capacities in 
organizational vision, leadership, 
oversight and representation
EDI Board: Yes
Avance Board: Somewhat, but still 
growing, should/could give training
EDI Board: Undergone revision and new 
members; members involved in program
HIRO Board: Planning expansion
Objective 2: Partner Staff Training: Train local 
staff in all aspects of program 
implementation, management, 
evaluation, growth and accountability 
(including impact assessment)
AMEXTRA/Avance, EDI and HIRO: Staff 
trained in several ways and venues on all 
dimensions of MED
AMEXTRA/Avance: Very positive efforts and 
impact on all dimensions
HIRO: Particular success in training of Finance 
Manager
Objective 3: Client Training: Equip partner staff to 
adapt and use appropriate training 
materials and methodologies for their 
clients
AMEXTRA/Avance: MicroMeda carries 
out training for clients
HIRO: Has adopted Integra’s 
model/materials
AMEXTRA/Avance: AMEXTRA/Avance: Not 
many clients seem reached;
Should have cashier training
HIRO: Has not found best 
methods for follow-on training
Objective 4: Partner MIS: Equip partners with 
effective management information 
systems
AMEXTRA/Avance: In negotiation with 
COBIS system 
HIRO: Has adopted Integra systems
AMEXTRA/Avance: COBIS seems to have 
potential for Avance and others
HIRO: Making excellent use of Integra systems
AMEXTRA/Avance:
System is very late in 
coming and program 
suffers for its lack
Objective 5: Organizational Assessment: Enable 
partners to accurately and constructively 
assess their own organizations and plot 
a course for improvement based on 
results of the assessment
AMEXTRA/Avance, EDI and HIRO:
DOSA is faithfully and effectively applied
AMEXTRA/Avance, EDI HQ and HIRO; All 
have had the DOSA applied and have learned 
from it
Objective 6: Program Officer: Add to staff a 
Program Officer who will provide high 
quality technical services to partners 
and backstopping in home office
Program Officer is in place, working on all 
aspects of program and countries
Program Officer is highly qualified in MED, 
educates himself further, particularly on micro￾finance and is dedicated 
Objective 7: VP Technical Services: Expand 
purview and capacity of VP Technical 
Services to include broader array of 
partner services and development of 
home office tools
The Technical Officer is on-board and 
working on all aspects of the DIP 
requirements for her position
Technical Officer has designed a board 
development course, a strategic planning course, 
and an introduction to microfinance course 
There has been a consider￾able constraint in finding an 
MIS system for Mexico 
Objective 8: Government Accounting: Develop 
staff expertise in accounting and 
reporting for US government grants
Information and financial systems 
installed and in use; NICRA 
calculated; financial administrative 
systems employed; staff expanded
Outcomes mentioned have truly transformed 
EDI, allowing it to increase its reach 
considerably
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc14
Objective Organizational Level Key Outcomes Successes Constraints
Objective 9: Grants Management and Program 
Monitoring: Develop staff expertise 
and improve internal systems for major 
grant management and program 
monitoring
· Upgraded EDI’s financial 
management system
· All USAID reporting is accurate and 
on-time
Objective 10: Computer Network: Improve home 
office computer network to better serve 
staff need
Computers purchased and all staff 
networked
Objective 11: Strategic Planning: Develop five-year 
corporate strategic plan to set direction 
for the organization
Three Year Strategic Plan formulated 
and revised each year as “rolling” plan
Objective 12: Sustainability: Improve home office 
financial sustainability
· Direct mail campaign be-gun in 
November 2001 
· Second mailing in January 2002 to 
an expanded list
· NICRA calculated
Establishment of NICRA opens EDI to new 
sources; MG with USAID opens new private 
sources
Events of September 11 
delayed the initiation of the 
direct mail campaign. The 
decline in technology sector 
wealth precludes raising an 
endowment in the near 
term. 
Objective 13: US Public Awareness: Increase US 
public awareness of the work of 
Enterprise
· Annual reports, new brochures and 
video produced and distributed
Very professional video produced at very 
low costs
Romania
Objective 14: Establish Integra (HIRO) institutional 
capacity to deliver microenterprise 
credit and training services in Romania
Association HIRO established along 
with SC HIRO CONS SRL, an Ltd. 
Company established as a lending 
vehicle
· Staff hired and trained
· MIS systems in place and working
· Clients experiencing growth
Lack of specific legislation 
for MFIs in Romania and 
lack of support from the 
Minister of Finance
Objective 15: Achieve significant outreach among 
low-income women
25.2% of HIRO clients are living 
under the poverty line, which is $50 
per month.
The personal income of 80% of HIRO 
clients is under the average income in 
Romania, which is $100 per month.
HIRO provides an opportunity for low￾income women in Bihor County to have a 
business financed in a county where that 
otherwise would not be possible.
If the clients are too poor, 
this could have a negative 
impact on the program 
because they tend to use the 
revenues from business to 
cover family expenses.
Objective 16: Implement successful business training An initial training course of 12 hours 
implemented.
On-going training and consulting 
delivered to the clients by the Loan 
Officers especially during site visits
The course is very appreciated by the 
women for its rich content and practicality. 
100 % of the trainees rated the training as 
very useful for the information received and 
relationships created. 91 % of them said that 
training empowered them. There are no 
other courses available for small 
entrepreneurs.
Follow-up training is more 
difficult to deliver to groups 
because the clients can’t 
find the time for it, even if 
they consider it very 
beneficial.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 15
Objective Organizational Level Key Outcomes Successes Constraints
Objective 17: Achieve program efficiencies Percent of portfolio in default is bigger 
than projected due to the first loans 
issued and to the lack of experience of 
staff.
HIRO corrected the problem
Many lessons learned from the first year of 
operation have been incorporated into HIRO 
operations and loan requirements and 
problems HIRO had have been overcome
The number of clients 
projected as targets was 
very high, which created 
pressure on the 
inexperienced staff in the 
beginning, which, in turn, 
caused the high early loan 
default rate. 
Objective 18: Progress toward sustainability of the 
MED institution
Cost coverage percent was higher than 
targeted (42% vs. 30%). 
FTE interest income was higher than 
projected ($3,381 vs.$1,100)
HIRO has recuperated some money even 
from the written-off loans
The delinquent clients 
contributed to reducing 
both of these indicators
Objective 19: Achieve significant impact 64% of the clients experienced 
increases in business sales in the last 
12 months. The target was 75%. 
64% of the clients experienced 
increases in the household income in 
the last 12 months. The target was 
50%
$HIRO helped many women to improve 
their lives and self-esteem;
$HIRO created a place where women feel 
safe and respected; and
$The program has a positive impact on the 
clients’ families.
The economic situation is 
very bad. Inflation was still 
high (29%) and people 
generally can’t afford to 
buy much.
Due to the conditions in the 
country, women are afraid 
to start bigger businesses 
and production because the 
risk would be too high
Mexico
Objective 20: Expand AMEXTRA’s institutional 
capacity to deliver MED services
AMEXTRA’s capacity is expanded by:
$ Avance Chalco MFI model application; 
$ Increased network with training and 
MED associations; and an
$ Innovative flexible, savings-led 
solidarity group model for delivering 
microfinance services.
Avance revised its model, requirements and 
procedures for lending and, through close 
monitoring, found significant improvement. 
Avance finds that for 
efficient lending and low at 
risk portfolio it needs to 
lend to higher income level 
borrowers and businesses 
than fits EDI’s initial 
vision.
Objective 21: Establish significant program breadth Avance Chalco has spread to 
employment of AMEXTRA services 
significantly in Chalco Valley; Avance 
models are being employed by 
AMEXTRA in other parts of Mexico, 
rural and urban
Avance has expanded its membership 
beyond its target and highest expectations. 
Indeed, increased membership is pressing 
Avance to make changes in MIS.
The MIS currently used is 
inadequate for the size of 
Avance’s membership and 
loan servicing either for 
loan tracking or for Avance 
financial management.
Objective 22: Establish significant program depth Women are a significant (large) part of 
Avance and play a key role in the 
program through the cashiers being 
primarily women
All Avance’s loan officers and staff are 
women, except the Director.
Cashiers are mostly women
NOTE: Avance no longer 
designates women as an 
exclusive target borrower 
population
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc16
Objective Organizational Level Key Outcomes Successes Constraints
Objective 23: High Program Efficiency Avance has reached 9.9% of portfolio 
in default by the end of Year Two
EDI made a mistake in 
assigning the 5% target desired 
as an end-of-project status in 
Years One and Two. The 
target should have been 
ramped up.
Objective 24: Progress toward sustainability High cost (84%) recovery establishes 
platform from which AMEXTRA/Avance 
can raise private funding
The rate reached by the end of Year two is 
well above the 58% end-of-project target
Objective 25: Achieve significant impact Wide geographic reach Avance has expanded in new and poor 
neighborhoods and had significant impact as 
businesses surveys show
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc17
5.1.3 Familiarity with DIP and design*
Findings:
(a) The DIP is used by EDI Headquarters and its partners for the following purposes:
· It provides a uniform structure for reporting;
· It focuses staff attention on performance indicators; and
· It is a guide for targets to be achieved.
(b) Headquarters staff are extremely conscious of the DIP as a strategy for achieving EDI’s 
goals, as a statement of EDI’s benchmark requirements, and as a roadmap for operations. 
They refer to it among themselves at crucial times of decision-making. 
Conclusions:
(a) Partner managers do not appear to use the DIP and its components, particularly the 
indicators and a periodic reporting against them, as a guide to management or source of 
modifications in the program. In one case the DIP was reported as serving as a roadmap 
(with an implication of rigidity) to program implementation, obviating the need for an 
active board, closely overseeing progress, and making changes when necessary. EDI 
Headquarters, however, does utilize reported results against indicators as a guide to 
oversight and supervision vis a vis its partners.
Recommendations:
(a) EDI should try and instill more of a sense of ownership on the part of its partners in the 
program and their respective parts of it, particularly their performance indicators, by 
doing the following:
· Involve partners more actively in the program design, particularly goal and target 
setting, so that partners take more ownership in plans, and 
· Perhaps build into the budget an “all-partner manager” multi-day workshop for DIP 
formulation and team building, as well.
5.1.4 Major successes and shortfalls in implementation*
Highlights of major successes and setbacks from EDI’s implementation experience are shown below in 
Table 5.1.4. They are based on review of relevant documents, analysis of data, visits to program sites and 
interviews with program and partner staff and clients.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc18
Table 5.1.4: Major Successes and Shortcomings in Implementation
Implementation Experience at a Glance
Major Successes Major Shortcomings
1. EDI Headquarters staff and operations have benefited 
from the Matching Grant experience by increasing their 
capacity to plan further into its future, generate more 
funding, and, particularly, to program and support local 
NGOs in MED. Most of these improvements have 
stemmed, either directly or indirectly, from the information 
technology acquired by HQ, the communications it has 
allowed, and the reporting requirements of USAID which 
are made possible by the IT improvements.
1. Not enough start-up and learning allowed for in 
the DIP, creating too high a volume of lending 
without adequate and tested procedures and 
requirements to ensure quality loans and reduce 
default.
2. All parties seem to have learned from early mistakes and 
recovered quickly. Examples of improvements include:
EDI HQ – (1) Its understanding of how USAID works and 
(2)
allowing partners to change models when needed
Avance Chalco – (1) Loan terms and maximum lending, 
(2) Loan Officer incentives, (3) Group requirements
HIRO – (1) Loan terms and maximum lending, (2) Greater 
assistance to clients in business plans, (3) Eliminating 
solidarity groups, (4) Training prior to loan approval
2. Not providing an adequate loan tracking and 
financial management software to Avance Chalco 
has not only restrained its growth in lending but, 
more importantly, leaves the program’s records 
vulnerable and causes significant program 
inefficiencies. Secondary negative effects of this 
are that the Program Coordinator has been 
required to spend inordinate amounts of time on 
loan tracking and financial management because 
of a break between financial managers. (See 
Section 6.4.) It should be noted that the 
development of a flexible, cost-effective MIS is a 
chronic difficulty in MED work around the world. 
Negotiations are currently in the final stages with 
Microbanx for use of a web-hosted version of its 
COBIS software.
3. EDI has remained faithful to its vision of helping poor 
women gain a living and support families through business 
initiatives in the face of realities which argue for a bias 
towards lending to more established and solvent 
entrepreneurs.
3. Both programs have suffered from regulatory 
uncertainty. Changing regulations ( in the case of 
Mexico) and unclear regulations (in the case of 
Romania) have necessitated a re-registration 
process for both organizations – a process which 
has had a high cost in terms of the Program 
Directors’ time and energy.
4. The EDI program seems to be extremely efficient. 
Essentially one Program Manager, supported on a part￾time basis by financial and administrative staff, supports 
two micro-finance development projects, each of which 
was new and each of which is successful after two years, 
based on visits to representative cross-sections of clients. 
(See Section 7.7.3)
4. EDI should make a greater effort to provide on￾site technical assistance to its partners in capacity 
building. There should be closer direct support to 
partners and assistance in solving problems.
5. USAID management, strategic planning and 
performance monitoring methods have become 
institutionalized in EDI.
5. EDI has not done as much as it can in assisting 
partners in board capacity building through such 
things as implementation of its board training 
seminars used at HQ for partners. Implementation 
of this seminar at 2 non-Matching Grant partners 
is scheduled for 2002. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 19
5.1.4 Impact Results*
Findings:
(a) The DIP contains impact indicators some of which have been categorized as 
“sustainability” measures and some as “impact” measures. These include:
For EDI Headquarters –
fi Percent of endowment goal raised
fi Number of individual donors
fi Revenue from institutional giving
fi Marketing of client products
For Avance Chalco –
qua sustainability --
fi Percent of cost coverage
fi Interest income per staff member
qua impact –
fi Percent business owners with increased sales in last 12 months
fi Percent business owners with increased household incomes in last 12 
months
For HIRO –
qua sustainability –
fi Percent of cost coverage
fi Interest income per staff member
qua impact –
fi Percent business owners with increased sales in last 12 months
fi Percent business owners with increased household incomes in last 12 
months
(b) EDI, HIRO and Avance are efficient in the sense that they provide effective microfinance
development services at very low costs. Staff rates are low. Staff travel only when
necessary and inexpensively, both in travel and lodging. However, in the cases of both
HIRO and Avance, their efficiency indicator targets are all underachieved. (See Section
5.1.2 above and, particularly Conclusion C.)
Conclusions:
(a) As is shown in Annex B, one of EDI’s HQ sustainability measures have not been
achieved.
(b) For Avance Chalco, three out of the four sustainability and impact measures have been
achieved in Year Two.
(c) For HIRO, also, three out of the four sustainability and impact measures have been
achieved in Year Two.
5.2 Assessment of project model and hypotheses
5.2.1 Project hypotheses articulated in CA*
Findings:
The hypotheses and models of the EDI program, although not expressed in program documents as such,
can be constructed from program documents in the following way. From EDI’s Strategic Plan for 2001 –
2003, the “Organization Description and Mission” are described as follows:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc20
 “Enterprise Development International is a Christian nonprofit 501 (c)(3) organization serving the
poor in the United States and around the world. Enterprise raises funds and provides financial and
technical support to programs implemented by locally registered organizations. Through these
partnerships, poor families are equipped to support themselves and strengthen their communities. The
Mission of EDI is to demonstrate God’s love for the poor by enabling them to free themselves from
poverty. The mission is accomplished in the following way:
· Providing business training to low-income persons who have the potential and desire to become
self-supporting;
· Distributing small loans to poor entrepreneurs who have viable business ideas but need capital;
· Mentoring participants through on-going personal and professional encouragement.”
EDI’s Matching Grant application amplifies the hypothesis and model as expressed, within its “Rationale 
for Undertaking the Program” section, in the following paragraph:
“Enterprise strongly believes that the best way to address poverty in the developing world is
through sustainable economic development programs...The proposed program is designed to
improve the social and economic status where the poor, in particular very poor women, have a
great need for job creation, income generation, and overall community development.” 
Most succinctly, although in less detail, the EDI hypothesis is expressed in its CA in the following way:
“The goal of the program is to enhance the income, social status, health, and welfare of very poor 
women and their families in Mexico and Romania. This program attempts to address poverty
alleviation through a sustainable microenterprise development program that will focus on job
creation and income generation for impoverished women and men...The program’s purpose is to
develop the sustainability of (EDI’s) affiliate organizations by enhancing their institutional
capacity, training, and technical development.”
5.2.2 Replication and scale-up of approaches in project area or elsewhere*
This sub-section covers various aspects of model replication. It discusses EDI models and approaches
which have been replicated, modified or have not been replicated at all by its partners. It also discusses
key principles of EDI which have been successfully or unsuccessfully applied by its partners. It also
contains observations and conclusions about why replication has succeeded to the extent that it has.
Findings:
(a) Replications and scaling up of Enterprise Development programs which have taken place
over the course of the Matching Grant include:
fi Replication of the Avance Chalco model in Chiapas – a combined effort of
AMEXTRA, the Kellogg Foundation, and Enterprise Development.
fi Integra is using the lessons it has learned about microenterprise development in
Romania through the Matching Grant and applying them to an expansion of its work, 
in the southeast of the country. 
fi Enterprise Development has signed a new partnership agreement with an
organization in Guatemala and has used many MG lessons to design that program.
Fundraising for that work is underway and lending operations are due to begin in
mid-2002.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 21
fi Enterprise Development has significantly scaled-up its work in India and the
Philippines during the period of the Matching Grant, again drawing on program
lessons and home office technical expertise gained through the MG.
(b) The community transformation bank model, utilizing two-tiered fellowship groups for 
support, learning and mutual responsibility, has not been followed strictly by either
partner, with the agreement of EDI. Mexico does use solidarity groups but not in two￾tiered fashion. From the beginning HIRO, did not choose to adopt the savings aspect of
the model. Moreover, Romania has abandoned solidarity groups, finding early on that
clients do not trust each other sufficiently to work in groups and that they are more in
competition with each other than in cooperation. 
(c) The loan tracking and financial management software and model used by MikroFond,
Integra’s partner in Bratislava, is used by HIRO in Romania. MikroFond provided
training and technical assistance to HIRO staff in its installation and application.
Conclusions:
(a) Although the community transformation bank model is one which EDI applies in its
international practice and is one it believes in, it does not require its Matching Grant
partners to apply it either strictly or at all. The HIRO program, since it does not offer
savings, doesn’t apply. Mexico has applied the model to a certain extent as described
above.
(b) The MikroFond MIS/FIS systems used by HIRO are among the strongest points of
HIRO’s operational success.
5.3 Advocacy under the project
5.3.1 Advocacy activities and impact*
Advocacy is not included as a goal, purpose, or activity in the EDI Cooperative Agreement.
Consequently, no systematic research was done on this issue. However, EDI partners did find it necessary 
to undertake advocacy activities.
In Mexico, the problem being addressed through advocacy is that AMEXTRA, the sponsoring institution
under which Avance Chalco operates, is a social NGO, while Avance is acting as an economic NGO. If
an NGO raises and handles money, it is regulated differently than a social NGO. The problem in Romania 
with HIRO is that it was originally registered as a social NGO. Changes in and uncertainties about
national legislation regarding NGO regulations have made it unclear whether HIRO, which partially acts
as an economic NGO providing loans, fits properly. 
Each partner has determined different courses of action, through the options each learned in their
networking. Avance has decided to either restructure itself within AMEXTRA or to split off from
AMEXTRA, while HIRO has registered itself as an economic NGO for the purposes of lending.
Realizing that the issue of advocacy was important to PVC, the evaluator did gather information on
advocacy whenever such activities were identified. In the interests of informing PVC about these
activities and outcomes, they will be discussed here in terms of lessons learned.
Findings:
(a) Avance Chalco has become involved with the Mexican association of microfinance
organizations, PRODESARROLLO, and other NGO associations such as Red de
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc22
Finanzas Sociales (Network of Social Finance), to inform itself and to help inform the
Government of Mexico about the issues, pros, and cons involved in the current debate
over microfinance, NGO registration legislation, and regulations. 
(b) HIRO has participated with the Transylvania Business Forum (TBF) and the nascent
association of Romanian micro-finance institutions in meetings and conferences to
discuss current NGO registration and regulations and to enter into dialogue with the
Government of Romania. 
(c) HIRO and Integra have taken a leading role in founding an association, as yet unformed
and un-named, of Romanian micro-finance institutions. Integra, together with TBF,
participated in an Ethics in Government seminar and, based on that experience, are
preparing a proposal for funding from Canada and Great Britain to support its
establishment.
Conclusions:
(a) This networking has been productive in terms of informing EDI’s partners about the
status, issues and options in NGO registration and regulations as they affect Avance and
HIRO. They do not, however, appear to have had much influence on how registration
legislation and regulations might end up being reformulated.
(b) The information about options obtained in discussions with other NGOs has been
beneficial to EDI’s partners in enabling them to formulate strategies of their own and to
take actions regarding their registration which will allow them to operate regardless of
the outcome of national debate and consequent regulations. This information was gained
through networking with the purpose of influencing the national dialogue.
(c) HIRO’s involvement itself with the Transylvania Business Forum and its attempt to form
a micro-finance institution association as it is now doing, are significant steps in a society 
that is used to “top down” directives rather than “bottom up” lobbying.
Recommendations:
(a) Avance and HIRO should continue in the relationships with PRODESARROLLO and the
Transylvania Business Forum, as well as other associations and NGOs in order to further 
strengthen their registration and protect their forms of operation.
5.3.2 Partner/PVO roles in advocacy* -- N/A
5.4 Implementation Lessons Learned
This section is designed to include tools, approaches and methodologies developed by the program that 
have benefited or could benefit other MED projects or institutions.
Findings and Conclusions:
(a) COBIS software – EDI is negotiating testing and using this new microfinance loan
tracking and financial management package in Mexico with Avance Chalco.
(b) HIRO’s re-structuring and “double registration” could be useful for other NGOs not only 
in Romania but in Eastern Europe through the Integra and OI network. 
(c) Integra is applying the DOSA training in its Bratislava project.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 23
6.0 PARTNERSHIP QUESTIONS
6.1 Analysis of Partnership Schemes*
Findings:
(a) Ostensibly the partnership arrangements and relationships in the EDI program are
straightforward. EDI supports Avance Chalco and HIRO through AMEXTRA and
Integra respectively. There are two examples of local subcontracting:
fi In Mexico, where Avance subcontracts Micro MEDA Mexico, the local affiliate of
the Mennonite Economic Development Associates (MEDA), to carry out client
training in Microenterprise Capacity Building and
fi In Romania, where HIRO was supposed to subcontract the Transylvania Business
Forum to provide training to HIRO staff in the early stages of its development. The
training was not carried out.
(b) Micro MEDA functions completely independent of Avance. It has its own curriculum,
which has not been reformulated for the EDI program. It provides its own training
materials, although Avance takes responsibility for reproducing the copies. 
(c) There are relationships between the various international partners – EDI, Integra, MEDA, 
AMEXTRA and OI – that are outside and precede the EDI Matching Grant program. All 
institutions are oriented by Christian values. They cooperate, attend conferences, and
share methodologies and experiences with each other. They know each other, as
institutions, quite well.
· There are relationships, outside of the Avance – EDI and HIRO – EDI relationships, 
between EDI and AMEXTRA and Integra. EDI has a second program with
AMEXTRA in Chiapas. EDI has another program with Integra in Slovakia.
· There is, also, a common relationship held by both Integra and EDI with Opportunity 
International (OI), headquartered in Chicago. That relationship is one of staff, and
consequently, experience and ideas stemming from OI into EDI and Integra.
Conclusions:
(a) The common organizational cultures and shared Christian values is particularly strong
“mortar” for cementing these institutions and enhancing the opportunity for program
success even when conditions might get difficult. (See above under Section 5.2.2.)
6.2 Measuring Institutional Capacity* 
Findings:
(a) EDI has set up a monthly reporting routine and format for its partners consisting of three 
parts: Program Summary with textual description of activities carried out, problems
encountered and/or resolved, etc.; Program Data with training, loan tracking and portfolio 
performance data; and Financial Accounting with management data.
(b) Through its monthly reports and sometimes direct sharing of data via internet, EDI
follows all indicator results explicitly, i.e. each indicator is reported on.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc24
(c) EDI has done some specific assessments – early loan default problems and the adequacy
of WOF for training in Mexico and Romania -- once problems have been identified. In
most cases EDI leaves the analysis and conclusions to the local partner.
(d) EDI has set the DOSA in place in Mexico and Romania as a way to enhance local
measurement of capacity (self assessment) by facilitating one DOSA session for each
partner.
(e) EDI makes visits to its local partners, with the Program Officer making four visits to
Romania and four to Mexico.
(f) EDI’s Director of Communications has made visits to each partner to document “success 
stories.”
(g) EDI relies on its sponsoring institutions -- AMEXTRA and Integra -- for monitoring and 
supervision. Integra staff visit partners more frequently and are in closer communication
than EDI staff, while Avance appears to have about as much contact with EDI as it does 
with AMEXTRA .
(h) EDI keeps informed about partner activities and performance through its network of
related institutions (see Section 6 above).
Conclusions:
(a) EDI and its partners have reacted quickly to indicator results, making quick and effective
changes when the need was identified, as with the loan default problems arising early in
the experience of Avance and HIRO.
(b) EDI appears to follow and be more concerned with loan tracking and financial
management (efficiency and sustainability) indicators and less concerned with
organizational management and capacity building indicators. Training of partner staff and 
clients, for example, and technical assistance and board development for partners could
be provided to a greater extent although board development and staff training are
priorities for EDI TA this year under the Matching Grant. It is as if EDI and its partners 
have been most focused on making sure the models works and the programs operate,
remembering that both started from zero. (See Recommendations below.)
(c) EDI has been slow to deliver on the need by Avance of an MIS system that will allow it 
to adequately track loan information. (See Section 5.1.4 above and Section 6.4 below.)
(d) Leaving as much discretion and authority in the hands of its local partners in cooperation 
with their regional sponsors, as described in (g) above, EDI has not always provided
adequate oversight of partners. For as capable and dedicated as partner managers are,
sometimes they have not known what to do. While the major problems of early loan
default were addressed by both EDI and its partners effectively, lower order needs that
may not be showing up yet in the performance indicators may be being overlooked until
they become big problems. Possible examples, worthy of attention and oversight, include: 
fi In Mexico, the need for MIS, financial management in general, and the building of
staff capacity to match the rapidly growing portfolio; 
fi In both Romania and Mexico, the need for board development and partner reactions 
to the uncertainty of the current regulatory environments.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 25
It should be noted that the delegation of authority is part of EDI’s methodological
approach, making decisions is an important aspect in developing ownership and effective
responsibility for local programs, which in terms re-enforces partner sustainability.
(e) The supervisory visits carried out by the Program Officer are proper in number and
timing, but the Evaluator concludes that they are inadequate, possibly in their duration;
the issues that are focused on; the technical assistance partner management might be
given during the visits; or the planning and coordination that could be done with
AMEXTRA and Integra.1
(f) The oversight and supervision of local partners by their sponsoring institutions varies in
effectiveness. The Integra Program Advisor, who is partially paid for by EDI under the
Matching Grant, makes many visits, has adequate communication, and gives good
direction to HIRO. AMEXTRA appears to leave Avance more on its own, Avance having
more contact with EDI directly regarding.
(g) Regarding results of the DOSA --
fi The DOSA was facilitated for HIRO only in September, 2001. It generated twelve
“action items” of which none have as yet been addressed.
fi The DOSA was carried out in Mexico in June, 2001, and it generated four “action
items” of which two have been implemented and one is being completed.
Recommendations:
(a) EDI should devote more attention to training and technical assistance to partner staffs.
Since delegation of authority is important to the EDI-partner relationship (see sub-section 
7.4 (c) below), giving partners the necessary tools is also important. Specifically: 
fi Board training seminars that EDI has developed and implemented for its own board
should be given to its partners and partner boards, which are currently being
expanded and re-structured for both Avance and HIRO; EDI notes that it currently
has plans for carrying out board training for Integra/Slovakia, and its partner in
Nicaragua.
fi Partner staff training in Mexico should be given somewhat more attention. The
courses at New Hampshire College in MED and at the Microfinance Center in Poland 
for loan tracking and financial management that have been provided through the
grant have been effective. The Finance Manager in Avance, who, although an
accountant, is new as of November, 2001, and could use training in loan tracking and 
 
1 This conclusion was based on evaluator observations and analysis and was developed into a hypothesis – that EDI’s partners, 
being newly formed, sometimes felt “out on a limb” or in unfamiliar territory – around the general issue of how to deal with the 
local partners’ registration. For both Avance Chalco and HIRO this issue brought up several thorny decisions and actions the 
partners needed to take. In order to test the hypothesis, the evaluator asked several different kinds of questions to various
partners, including the Program Officer and other EDI Headquarters staff, designed to identify the depth and breadth of
“supervision”. The evaluator was particularly interested in the dimensions of “supervision” which might also be termed “support” 
or “direction” that EDI might have provided to partners at times when they, being newly organized, might have been in doubt or 
uncertain. The local partners always felt that they had handled the issues well, or as best they could, and that they did not expect 
any further support or direction from EDI. They generally kept EDI closely informed and acknowledged that EDI Headquarters 
did help them as much as possible. The local partners never expressed any lack of satisfaction or feeling that EDI should have 
done more for them. EDI Headquarters staff, as was noted in the report, felt that to some extent the process of local partners 
learning on their own was part of developmental value. So any lack of supervision, defined as “support” and “direction”, was a 
conclusion of the evaluator’s and should be viewed in juxtaposition with EDI’s management approach of delegated decision￾making and problem solving. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc26
financial management. Moreover, once the COBIS system is installed, the Project
Coordinator as well as the Finance Manager will need training in its application.
6.3 Constraints to Partnership* 
Findings:
(a) The constraints to EDI’s relationship with its local partners include:
fi Distance – EDI is very careful about the money it spends on travel to the field.
(b) The constraints in the relations between regional and local partners include:
fi AMEXTRA has overlapping but broader goals than Avance Chalco, making
oversight and assistance difficult, in that AMEXTRA does not do lending and saving. 
Since AMEXTRA’s methodological approach does not include economic
mechanisms for community development like savings and lending, their objectives
are not always consonant;
fi In Mexico – Avance is outreaching and overtaking AMEXTRA in the Chalco Valley
in terms of need for physical space and coordination with other community center
activities; and
fi Integra seems to have a very close fit, in terms of its methods, expertise and
objectives, with HIRO, making for a close and effective partnership. Constraints
were not found by the Evaluator.
6.4 Information Technology* -- N/A 
Since neither EDI partner existed before the CA it is not possible to evaluate its use of and capabilities in 
information technology in a before and after sense.
EDI Headquarters, on the other hand, has experienced an information technology improvement described
in terms of “light years” by EDI staff and verified by the Evaluator. Much of the discussion above, in
several sections, related to financial management and capacity building at Headquarters. 
6.5 Use of local networks and service organizations* -- N/A
7.0 PROGRAM MANAGEMENT
7.1 Strategic Approach and Program Planning*
Findings:
(a) EDI has adopted new methods and carried out several activities that have improved its
ability to plan, not only in its international program but also in its domestic activities.
fi It designed a seminar for its board to carry out strategic and program planning;
fi It carried out an outside evaluation that was aimed at informing as well as improving 
its own planning;
fi It formulated its first three-year plan as part of the Matching Grant; and
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 27
fi EDI carried out the DOSA, which is serving as a guide to and baseline for future
actions EDI is planning.
(b) The improvements in its information systems, described in Section 6.4 above, have
improved EDI’s ability to plan and adjust its plans.
Conclusions:
(a) The increased ability of EDI to plan for the future, reinforced by significantly improved
financial and administrative management systems allowing for better reporting and
projecting, has been so remarkable that it is referred to among the significant successes of 
the Matching Grant.
7.2 Country Initiatives* -- N/A
7.3 Conflict Management* -- N/A 
7.4 Monitoring and Evaluation* 
Much has already been said about EDI’s management of the program. Below are presented summary
findings, conclusions, and recommendations about its overall management, with references to the
appropriate sub-section for more details.
Findings:
(a) There is a bond between EDI and its partners of shared values which holds the
partnership together, beyond the functional and financial relationship. This bond
reinforces trust and fundamental understanding amongst all partners. It makes program
management easier and more effective. (See Section 5.2.2 above.)
(b) EDI has adopted new methods and carried out several activities which have improved its 
ability to plan (see Section 7.1 above):
· It designed a seminar for its board to carry out strategic and program planning;
· It carried out an outside evaluation that was aimed at informing as well as improving 
its own planning;
· It formulated its first three year plan as part of the Matching Grant; and
· EDI carried out the DOSA which is serving as a guide to and baseline for future
actions EDI is planning.
(c) The improvements in its information systems, described in Section 6.4 above, have also
improved EDI’s ability to plan.
(d) Financial management in general in EDI’s Headquarters includes all necessary elements
for effective financial control. (See Section 7.7.1 below.)
(e) EDI’s program is efficient (see Section 7.7.3 below):
· EDI’s current indirect costs are extremely low at 18.51%;
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc28
· EDI’s direct costs for personnel are also extremely competitive. All costs, and
particularly salaries, are intentionally kept low so as provide more services to
program clients;
· The Matching Grant program is carried out by one full-time Program Officer support 
by part efforts from EDI’s VP for Technical Support, the Director of Finances, the
VP for Development and the VP for Programs; and 
· As of September 30, 2001, administrative and fundraising expenses represent only
9.2% of total expenditures.
Conclusions and Recommendations:
(a) Regarding results of the DOSA --
fi The DOSA was facilitated for HIRO only in September, 2001 by the EDI Program Officer. It 
generated twelve “action items” of which none have as yet been addressed. These action 
items included: 
· Need to improve staff skills in impact surveys and assessment;
· Contingency measures needed for lack of operational funds;
· Develop an operational cash reserves policy;
· Longer terms for bigger loans need to be offered to clients; (this is being considered)
· Board more involved in the strategy of the agency;
· Better communication between board and agency (board empowering staff);
· Better understanding of strategic management;
· Better top-down communication from board to staff;
· Connect mission and objectives;
· Better communication with general public;
· Linkages with private sector (develop a plan); and
· More formal application of impact survey.
fi The DOSA was carried out in Mexico in July, 2001 by the EDI Program Officer, and it
generated four “action items” of which two have been implemented and one is being
completed. These action items were:
· Hiring of new staff, including an accountant and cashier;
· Defining the specific mission and objectives of the organization;
· Creating a strategy for developing relationships with the private business sector in the 
Chalco Valley, in coordination with AMEXTRA and Enterprise Development; and
· Determining the prudent level of operating reserves for the program.
7.5 Overall Management* 
Much has already been said about EDI’s management of the program. Below are presented summary
findings, conclusions, and recommendations about its overall management with references to the
appropriate sub-section for more details.
Findings:
(e) There is a bond between EDI and its partners of shared values, which holds the
partnership together, beyond the functional and financial relationship. This bond
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 29
reinforces trust and fundamental understanding amongst all partners. It makes program
management easier and more effective. (See Section 5.2.2 above.)
(f) EDI has adopted new methods and carried out several activities which have improved its 
ability to plan (see Section 7.1 above):
· It designed a seminar for its board to carry out strategic and program planning;
· It carried out an outside evaluation that was aimed at informing as well as improving 
its own planning;
· It formulated its first three year plan as part of the Matching Grant; and
· EDI carried out the DOSA which is serving as a guide to and baseline for future
actions EDI is planning.
(g) The improvements in its information systems, described in Section 6.4 above, have also
improved EDI’s ability to plan.
(h) Financial management in general in EDI’s Headquarters include all necessary elements
for effective financial control. (See Section 7.7.1 below.)
(e) EDI’s program is efficient (see Section 7.7.3 below):
· EDI’s current indirect costs are extremely low at 18.51%;
· EDI’s direct costs for personnel are also extremely competitive. All costs, and
particularly salaries, are intentionally kept low so as provide more services to
program clients;
· The Matching Grant program is carried out by one full-time Program Officer
supported by part-time efforts from EDI’s VP for Technical Support, the Director of
Finances, the VP for Development and the VP for Programs; and
· As of September 30, 2001, administrative and fundraising expenses represent only
17.7% of total expenditures.
Conclusions and Recommendations: 
(a) EDI and its partners have reacted quickly to indicator results, making quick and effective
changes when the need was identified, as with the loan default problems arising early in
the experience of Avance and HIRO.
(b) Since delegation of authority is part of EDI’s methodological approach (see Section 6.2
above): 
· EDI should devote more attention to training and technical assistance to partner
staffs. Specifically board training seminars, client training, and partner staff training. 
· EDI should provide greater direct supervision of its partners and their sponsoring
institutions, including coordination and planning on a periodic and institutionalized
basis and longer oversight visits.
(c) The increased ability of EDI to plan for the future, reinforced by significantly improved
financial and administrative management systems allowing for better reporting and
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc30
projecting, have been so remarkable that it is referred to among the significant successes 
of the Matching Grant.
7.6 Sustainability*
Finding:
(a) As was described above under Impact Results in Section 5.1.5, EDI has scored well on its 
sustainability indicators.
(b) Both HIRO and Avance are preparing themselves for the possibility that a second
Matching Grant will not be awarded to EDI and that they will have to continue on their
own. To that end HIRO and Avance have taken several steps:
fi EDI is making a strong effort to resolve the MIS problem in Mexico;
fi Avance Chalco and AMEXTRA are clarifying their relationship and are formulating
Avance’s restructuring, given expected changes in national legislation regarding
NGOs;
fi Avance is expanding membership in its board; 
fi HIRO is expanding and widening the role of its board; and
fi HIRO has recently registered its lending operation as a limited company.
Conclusions:
(a) Both HIRO and Avance have reformed loan requirements, loan officer incentive
schemes, and taken other measures that have proven successful in reducing portfolio at￾risk such that they will meet their targets for operational sustainability by the end of Year 
Three. Avance will significantly pass its target, possibly to the extent of achieving 100%
operational sustainability.
7.6.1 Overall sustainability survey* -- N/A
7.7 Financial Management
Much has already been said about EDI’s financial management of the program. Below are presented 
conclusions about its overall financial management with references to the appropriate sub-section for 
more details. 
7.7.1 Effectiveness of financial management* 
Findings:
(a) Financial management in general in EDI’s Headquarters includes all necessary elements
for effective financial control.
(b) At HIRO, the only weaknesses to financial management are the following:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 31
fi Cash is handled – received, noted and recorded and kept – by several officers
including loan officers, the Cashier and the Executive Director and
fi The program loan data system and the Avance financial management system are not
linked and the data for each are kept on different computers.
(c) At Avance, the following weaknesses have been identified, and partially discussed above:
fi The program loan data system and the Avance financial management system are not
linked and the data for each are kept on different computers;
fi The expected COBIS MIS system will contain loan tracking as well as financial
management components that will be integrated;
fi Cash is received and stored in Avance’s office, which is housed in the AMEXTRA
community center in circumstances extremely vulnerable to theft ; and
fi The Avance Accountant is new and learning her responsibilities.
Conclusions:
fi Only the problems in Avance represent a concern for the overall financial
management of the EDI program.
Recommendations:
(a) Ensure that the COBIS system is obtained and installed.
(b) Train the new Avance Accountant and give her a clear set of responsibilities.
(c) Provide a computer with enough memory to hold and manipulate all program data.
7.7.2 Leveraging other donor funds* -- N/A
7.7.3 Cost effectiveness of technical approach*
Findings:
(a) EDI’s current indirect costs are extremely low at 18.51%
(b) EDI’s direct costs for personnel are also extremely competitive. All costs, and
particularly salaries, are intentionally kept low so as provide more services to program
clients. It was explained to the Evaluator and verified through the two field trips that this 
practice stems from the core Christian values followed by EDI and its partners.
(d) Although a quantitative analysis was not undertaken by the evaluator, the Matching Grant 
program is carried out by one full-time Program Officer support in part by efforts from
EDI’s VP for Technical Support, the Director of Finances, the VP for Development and
the VP for Programs.
(e) As of September 30, 2001, administrative and fundraising expenses represent only 17.7% 
of total expenditures.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc32
Conclusions:
(a) It appears, on an intuitive level to an Evaluator with considerable experience, that the
$649,990 awarded to EDI to be spent over a three-year period in Romania and Mexico is 
having a very large impact.
7.7.4 Repercussions of “matching” requirement on program* 
Findings:
(a) The fact that a major international institution is investing in it gives EDI high credibility
among its corporate and individual donors.
(b) The Matching Grant program has allowed EDI to have broader coverage and has
provided it with more “success stories,” making for good public relations and
development.
EDI has been able to meet its matching commitment through contributions from individuals, family
foundations and, in the case of Integra/HIRO, a grant (directly to Integra) from the Shell Foundation. The 
“matching” aspect of the program has been attractive to several of these donors. Rapid growth in Avance
Chalco put strains on Enterprise matching funds in December 2001, especially given decreased donations 
after the events of September 11. However, in the end, Enterprise was able to raise the necessary funds
for Amextra during this time, due to a few timely end-of-year donations. 
Conclusions
(a) The Matching Grant has made raising outside funds easier.
(b) While the Matching Grant has helped Enterprise with individual donors and family
foundations, the youth of the programs has prevented EDI from accessing big corporate
and institutional donors (i.e. major foundations) as EDI had hoped, at least not during the
first two formative years of HIRO and Avance. However, Integra was able to win a
significant grant from the Shell Foundation for HIRO.
(c) The grant has provided EDI with its two most marketable programs regarding general
fund raising as well as fund raising for the USAID match.
7.8 PVO’s Information Management* 
Findings:
(a) As is described above in Section 6.2, both HIRO and Avance submit monthly progress
reports to EDI which contain three sections: 
fi Program Summary with textual description of activities carried out, problems
encountered and/or resolved, etc.; 
fi Program Data with training, loan tracking and portfolio performance data; and 
fi Financial Accounting with management data.
(b) EDI submits annual reports to PVC which follows a PVC-prescribed format; one that
reflects the DIP. It contains the following sections, each divided into sub-sections 
covering Mexico, Romania and Headquarters:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 33
fi Background and Project Context;
fi Project Methodology;
fi Monitoring and Evaluation;
fi Review and Analysis of Headquarters/Support Functions;
fi Financial Report;
fi Lessons Learned and Long Term Project Implications; and
fi Attachments.
Conclusions:
(a) The progress reporting is appropriate in content and timeliness. EDI has been able to both 
note and follow problem issues, operations, and financial performance. Follow-up 
communication is carried on most frequently via e-mail and telephone.
(b) The annual reports to PVC report on performance indicators and target achievement, with 
explanations and clarifications where needed, should serve PVC as comprehensive
evaluative progress reports identifying successes, problems, and actions to be taken. 
7.9 Logistics* -- N/A
7.10 Project Supervision* 
Findings:
(a) EDI’s formal agreements are with AMEXTRA and Integra and give oversight and
supervisory responsibilities for the execution of the EDI program in Mexico and Romania 
to them. (EDI has a formal agreement with HIRO only because HIRO’s bank requires it.) 
EDI took the primary role in designing the program and works in close consultation with
AMEXTRA and Integra in its execution.
(b) On a more informal level, EDI has a close operational relationship with Avance Chalco
mainly because its Program Coordinator is an EDI representative.
(c) In each case, EDI provides support and assistance directly to HIRO and Avance when
needed. However, as was described and discussed above under Section 6.2, most
supervision of local partners falls to the sponsoring institutions. 
7.11 USAID Management* 
Findings:
(a) EDI was new to USAID as a grantee with this CA. Its knowledge of USAID procedures 
and familiarity with USAID’s organizational culture was negligible.
(b) EDI staff took various seminars at USAID and in PVC to familiarize itself with USAID
management.
(c) When EDI asked for clarification from its initial Contracts Officers, it received quick and 
informative responses. Some months into the CA, however, the Contracts Officer
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc34
changed. The current Contracts Officer is found to be uncommunicative and
unresponsive. As a consequence, EDI has asked fewer questions and increasingly tried to
figure things out on their own.
(d) EDI has found that communication with the Technical Officer, who has not changed over 
the course of the CA, has been helpful and supportive. 
(e) As EDI enters its third year under the Matching Grant, it feels more confident of its
understanding of USAID and how it works. 
8.0 CONCLUSIONS AND RECOMMENDATIONS*
The overall conclusions of the evaluation are presented below in outline form since the details of each 
have already been presented above. 
1. The direct capacity building services from EDI to local partners is limited. As was noted above in 
Section 6.2, EDI delegates much decision-making and problem resolution to its partners. The 
Evaluator has found situations, however, where somewhat more support and assistance to HIRO and 
Avance are warranted. These are described in summary below.
1.1. Regarding EDI training of partner staff:
fi Strategic planning or team building seminars have not been provided to the boards of either 
Avance or HIRO and yet they could be, since EDI has developed them;
fi Methods and materials for client training, which were supposed to have been provided 
through Women’s Opportunity Fund (WOF), but instead have been replaced in Mexico under 
a subcontract with Micro-MEDA and in Romania by materials developed by ISVOR/OI in 
Slovakia, do not appear to the Evaluator to be reaching many clients or increasing the skills 
of those who do take them; and 
fi The staff training and technical assistance described in the Application and for which the 
Transylvania Business Forum was subcontracted was not provided.
1.2. Regarding support in MIS to EDI partners:
fi Support to Avance Chalco weak and late, although it appears to have been overcome in 
January, 2002 and
fi Support to Romania good but comes through Integra.
1.3. Regarding capacity building in performance monitoring, the only model passed on to local 
partners is the Planning Matrix and its indicators and there is not much training on how to use or 
modify them.
1.4. Regarding the role of sponsoring partners in capacity building, much more capacity building and 
support comes from AMEXTRA and Integra:
fi AMEXTRA – administrative support, strategic planning, models, networking 
fi Integra – models, MIS software and financial systems, networking
1.5. Regarding local partner problems with registration, EDI has not been able to be of much help 
regarding the fit and adjustment of local partners and their registration as institutions to local 
laws and regulations, their changes and uncertainties (see below). 
2. Local partners are successful and sustainable because of:
2.1. The loan funds themselves which provide 
fi incentives to client participation and 
fi influence by local partners to strengthen client businesses;
2.2. The models that are applied;
2.3. The shared organizational values (see below); and
2.4. The excellent recruitment and quality of staff.
3. EDI Headquarters has increased its own capacity greatly from USAID link:
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 35
3.1. In its MIS and particularly financial systems;
3.2. Through its application of the DOSA;
3.3. Through strategic planning and other methods/models required by USAID;
3.4. Through its calculation of its NICRA as prescribed for government grants; and
3.5. Through fundraising capacity.
4. The common foundation of Christian motivation and values among all EDI’s partners is very 
beneficial:
4.1. As a “glue” that provides trust and solidarity between partners as well as a network for their 
support and coordination;
4.2. Through the lower costs offered by selfless motivation; and
4.3. Through steadfast attention to the quality of end products and services provided to clients.
5. All parties seem to have learned from early mistakes in the CA and to have recovered quickly:
5.1. EDI generally in its understanding of how USAID works;
5.2. Avance Chalco as it encountered higher than anticipated default rates, and overcame them 
through modifications in procedures and requirement, such as --
fi Loan terms modification and maximum lending reduction;
fi Loan officer incentive remuneration;
fi Group requirements; and
fi Additional loan officers hired.
5.3. HIRO also had high portfolio servicing problems and overcame them successfully through --
fi The elimination of solidarity group lending;
fi Training before loan acceptance through a three-day business seminar;
fi Business plan development and acceptance before loan acceptance;
fi Lowering of loan size; and
fi Stricter requirements.
6. Both local partners have had problems with how they are registered and in their ability to understand 
and adapt to changes and uncertainties in national laws regarding NGO registration:
6.1. Both have had to, in HIRO’s case, or is seriously considering, on the case of Avance Chalco, 
moving to some form of limited incorporation as opposed to not-for-profit status to better enable 
their lending practice and
6.2. Both organizations have found it necessary to carry out advocacy activities and engage in 
networking to influence legislation and regulations, as well as to keep informed.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc36
ANNEXES
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc37 37
ANNEX A: KEY EVENTS TIMELINE*
Tabular form
FY99: 1-Oct-98 to Sep-99 FY 00: 1-Oct-99 to 30-Sep-00 FY01: 1-Oct-00 to 30-Sep-01
Date Event Date Event Date Event
Avance Chalco legal 
registration process
Nov 1998 Outside evaluation of EDI 
recommending USAID 
matching grant application
Jan 2000 OI mentoring exercise Oct 2000 Enterprise Development 
Strategic Plan ratified by 
Board of Directors
Jan 2000 Director of HIRO hired Nov 2000 Years 2 and 3 budget revised
Dec 1998 Proposal submitted March 2000 DIP Submitted
May 2000 DIP Review
June 2000 Partner Program Directors 
trained in US
June 2000 HIRO legal registration 
July 1999 Matching Grant award 
announced
July 2000 Update of HQ DIP 
indicators
June 2001 Program Officer training in 
New Hampshire
July 2000 DOSA exercise at 
Enterprise Dev’t. HQ
June 2001 OI Mentoring Excercise
August 2000 Survey of partners July 2001 NICRA updated
August 2000 WOF training in Mexico July 2001 DOSA applied in Mexico
Sept 2000 HIRO begins training and 
loans
Sept 1999 EDI Matching Grant CA 
awarded
Sept 2000 OI mentoring exercise Sept 2001 DOSA applied in Romania
FY02: 1-Oct-01 to 30-Sep-02
Date Event
Oct 2001 Year 3 budget revised
Jan 2002 Final EDI evaluation for PVC
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc38 38
Key Events Timeline in Graphic Form 1998 1999
2000
2001
2002
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
January
February March
April
May
June
July
August
September
October
November
December
January
February
March
April
Evaluation recommends USAID MG application
Proposal submitted
Enterprise Development notified of Matching Grant award
Enterprise Development Matching Grant CA awarded
OI mentoring exercise; HIRO Director hired
DIP submitted
DIP review
Partner Directors trained in US; HIRO legally registered
DOSA at EDI HQ; Update of HQ DIP Indicators
Survey of partner TA priorities; WOF training in Mex.
HIRO begins training and loans; OI mentoring
EDI Strategic Plan ratified by Boar
d
MG budget revised for years 2 and 3
Program Officer training in NH; OI mentoring
NICRA updated; DOSA applied in Mexico
DOSA applied in Romania
Year 3 budget revised
Final EDI evaluation for PVC
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 39
ANNEX B: DETAILED IMPLEMENTATION PLAN TABLE*
Headquarters:
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishments
Data 
verified?2
Explanation for Change 
in Indicator or Target, if 
any3
Target 
Met?
Goal: Improve Enterprise’s capacity to provide high quality, sustainable technical assistance to implementing partner organizations.
 Technical Capacity:
Objective 1: Board Development: Equip local boards to improve their capacities in organizational vision, leadership, oversight and representation
Partners improving 
their Boards in 
identified areas of 
weakness
Conduct and evaluate 
2 seminars with 
revised materials
Year Two target was to complete 1 
seminar. EDI’s board training seminar, 
“Developing a Great Board” has been 
completed. 
The implementation of the second 
board seminar, originally scheduled for 
Sept. 2001, was postponed until early 
2002.
Y Neither indicator nor target 
changed
Yes for
Year 2
Activities for Obj. 1 (a) Study other institution board training materials
(b) Design a strategic planning course for the board
Objective 2: Partner Staff Training: Train local staff in all aspects of program implementation, management, evaluation, growth and accountability (including impact 
assessment)
Increased effective￾ness of partners in 
areas in which they 
received training
Conduct and evaluate 
2 training events w/ 
revised and expanded 
materials
·Completion of survey of partner 
training needs. 
·Completion of training tools 
·Delivery of a training on impact 
assessment to Avance Chalco. 
Y (records)
Y
Y
Neither indicator nor target 
changed
Yes for
Year 2
Activities for Obj. 2 (a) Design and carry out a survey and EDI partner needs for staff training
(b) Design training materials including: strategic planning; strategic planning; loan assessment; delinquency management; and impact assessment
(c) Organize a training in Mexico
Objective 3: Client Training: Equip partner staff to adapt and use appropriate training materials and methodologies for their clients
Partners using 
appropriate training 
materials
Revised and 
expanded mater-ials, 
according to partner 
input
Enterprise client training materials 
were revised during FY01. Most 
prominently, the accounting portion of 
the business training curriculum was 
enhanced.
Y Neither indicator nor target 
changed
Yes for
Year 2
Activities for Obj. 3 (a) Carry out training needs assessment of partners and their staffs
 
2
 “Y”, indicates data were verified by evaluators and “N” that it was not possible for evaluators to substantiate PVO data. 
3
 Revisions to indicators during the life of the project as well as any changes in targets for indicators. Space is also used to provide explanations where targets for 
Year Two were not achieved by EDI 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc40
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishments
Data 
verified?2
Explanation for Change 
in Indicator or Target, if 
any3
Target 
Met?
(b) Identify staff training opportunities in the regions and in the US
(c) 
Objective 4: Partner MIS: Equip partners with effective management information systems.
Increased timeli-ness, 
relevance and 
accuracy of partner 
management infor￾mation and reporting
Implement for 2 
other partners
HIRO in Romania has successfully 
implemented a new Management 
Information System (MIS).
Avance Chalco in Mexico has tested 
and plans to contract for an MIS in 
February, 2002
Y Neither indicator nor target 
changed
Accomplishment of the MIS 
for Mexico is a need
Yes for
Year 2
Activities for Obj. 4 (a) Incorporate, test and refine Integra loan and client data systems, as well as QuickBooks for HIRO accounting
(b) For Mexico, research “off-the-shelf” software that meets Avance Chalco’s needs
(c) For Mexico and other EDI partners, negotiate an agreement with Microbanx
Objective 5: Organizational Assessment: Enable partners to accurately and constructively assess their own organizations and plot a course for improvement based on results of 
the assessment
·Partners perform-ing 
self-assessment
·# actions taken per 
partner as a result of 
self-assessment
Facilitated self￾assessments, and use 
of their results, for 2 
partners.
The Discussion-Oriented Organiz￾ational Self-Assessment (DOSA) tool 
was facilitated for both part-ners as 
well as HQ staff and both 
organizations have begun 
implementing DOSA action items 
Y (records)
Y (records)
Neither indicator nor target 
changed
Neither indicator nor target 
changed
Yes for
Year 2
Yes
Activities for Obj. 5 (a) Learn the DOSA methodology and how it is to be facilitated
(b) Prepare local partner staffs for the training, its benefits 
Home Staff Development:
Objective 6: Program Officer: Add to staff a Program Officer who will provide high quality technical services to partners and backstopping in home office
Program Officer 
successfully 
providing quality 
technical services and 
backstopping
4 program visits; 4 
conferences & 
seminars attended; 
Boulder or NHC 
training
·4 visits to Romania, 4 to Mexico and 
2 to Nicaragua
·Program Officer has attended 2 SEEP 
Gen. Meetings and works on SEEP 
Impact Assessment Working Group, 
AIMS seminar, US Chamber of 
Commerce conference, a one-day PVC 
seminar and several courses including 
two weeks at New Hampshire 
College’s summer MED Institute
Y Neither indicator nor target 
changed
Yes for
Year 3
Objective 7: VP Technical Services: Expand purview and capacity of VP Technical Services to include broader array of partner services and development of home office tools
VP Technical 
Services success-fully 
providing quality 
technical services and 
having successfully 
deve-loped home 
office tools in Section 
I.
Attain targets for 
Board Dev’t, Partner 
Staff Training, Client 
Training and Partner 
from Section I. 
·Designed a board capacity building 
course and delivered it to EDI Board
·Designed board strategic planning 
training and used it to develop the EDI 
2001-2003 Strategic Plan
·Negotiating with software 
manufacturer for EDI-wide use 
Y ·Regarding staff training 
targets have been met
·Regarding MIS, there is a 
serious need for loan tracking 
system in Mexico which has 
not yet been met and leaves 
Avance Chalco vulnerable
No
Activities for Obj. 7 (a) Study MIS needs of partners in Mexico and Romania and identify compatible software
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 41
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishments
Data 
verified?2
Explanation for Change 
in Indicator or Target, if 
any3
Target 
Met?
Objective 8: Government Accounting: Develop staff expertise in accounting and reporting for US gov’t grants
Timeliness and 
accuracy of financial 
reporting to US Gov’t
Accurate & timely 
submission of
quarterly Financial 
Status and Federal 
Cash Transaction 
reports, and end of 
grant reports
·Calculated EDI’s NICRA for first 
time allowing gov. grants
·Upgraded EDI’s financial 
management system
·All USAID reporting is accurate and 
on-time
·Accounting assistant hired
Y (records) Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 8 (a) Carry out the OI mentoring program to learn government accounting requirements
(b) Hire an accounting assistant 
(c) Take courses at USAID and other gov. Related institutions
Objective 9: Grants Management and Program Monitoring: Develop staff expertise and improve internal systems for major grant management and program monitoring
Accurate and timely 
internal program 
monitoring and 
internal reporting
Expanded use of 
successful 
monitoring system
·Internal communications has been 
upgraded through internet and e-mail 
capability
·The DOSA has been employed and its 
results used in HQ and partners staffs
Y Neither indicator nor target 
changed
Yes for
Year 2
Activities for Obj. 9 (a) Carry out the OI mentoring program
Infrastructure, Planning and Sustainability:
Objective 10: Computer Network: Improve home office computer network to better serve staff needs
No. of computer 
upgrades; computer 
usage level; no. of 
system failures
Operation and 
maintenance of office 
system working well
·IT services company was hired 
· Twelve new computers purchased
·Several software packages purchased
Y Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 10 (a) Purchase computers, and software, upgrade computers
 (b) Contract with MIS specialist to make upgrades, install network in HQ and provide other IT services
Objective 11: Strategic Planning: Develop five-year corporate strategic plan to set direction for the organization
Existence and use of 
strategic plan
Annual updates 
completed
·EDI Strategic Plan for 2001 to 2003 
completed and ratified
·DOSA for HQ staff completed 
providing Strategic Plan updated 
Y Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 11 (a) Design a board training, with outside facilitator, for strategy development
(b) Have Program Manager trained in the DOSA delivery
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc42
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishments
Data 
verified?2
Explanation for Change 
in Indicator or Target, if 
any3
Target 
Met?
Objective 12: Sustainability: Improve home office financial sustainability
·% of endowment 
goal raised; 
·no. of individual 
donors; 
·revenue from 
institutional giving; 
·product marketing 
outcome
40% of $10 million 
endowment goal 
raised; 25% increase 
in no. of individual 
donors; 15% increase 
in revenue from 
institutional giving.
·Concept papers for endowment and 
marketing products completed 
·Direct mail campaign included in 
Strategic Plan
·A plan for marketing, shipping and 
selling program client products in the 
US completed
·48% increase in individual donors 
·15.6% increase in revenues from 
institutional donors
N
Y (records)
Y (records)
N
·Plan for establishing 
endowment postponed due to 
2001 economic situation
·EDI decided not to market￾ing client products in the US 
which complies with its target
No
Yes
Yes
Yes
Activities for Obj. 12 (a) Establish an endowment
(b) Conduct donor acquisition mailings and pursue institutional donors
(c) Investigate marketing products produced in the program areas by program clients
Objective 13: US Public Awareness: Increase US public awareness of the work of Enterprise
·No. publications; 
·No. website hits;
·Number of mail 
recipients
25% increase in # of 
hits on website
·Annual Reports improved 
·No. of EDI brochures increased by 
150% (from 2 to5) 
·EDI website hits/day increased from 
1 to 13
·EDI video was produced
·17,710 direct mail recipients in 
November 2001. 20,268 in January 
2002.
Y
Y
Y (records)
Y
N
Neither indicator nor target 
changed
Neither indicator nor target 
changed
Yes for
Year 3
Yes for
Year 3
Yes
Activities for Obj. 13 (a) Publish and distribute an Annual Report, calendar and other promotional materials
(b) Expand and improve website
(c) Conduct donor acquisition mailings
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 43
AMEXTRA/Avance Chalco Planning Matrix
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully Met?
Goal: The DIP shows no goal 
Objective 1: Expand AMEXTRA’s institutional capacity to deliver MED services
Qualified Program Director 
in place
In place Qualified Program Director 
hired 
Y Neither indicator nor target 
changed
Yes for
Year 3
Qualified loan officers in 
place
4 The program had hired 5 
qualified loan officers 
Y Neither indicator nor target 
changed
Yes for
Year 3
Qualified MIS in place In place An Excel-based MIS was 
established and recently 
upgraded. 
Y Implementation of a 
sophisticated MIS is planned 
for February, 2002
No
DOSA in use Demonstrated 
improvement
DOSA was facilitated in July, 
2001
Y Neither indicator nor target 
changed
Yes for
Year 2
Activities for Obj. 1 Select director
Provide training
Hire/train loan officers
Select/implement MIS and train users
Implement DOSA
Objective 2: Establish significant program breadth
Number of persons receiving 
training and saving
2200 The program had 1,261 saving 
clients as of September 30, 2001. 
On December 31, 2001 the 
program had 1,900 savers, well 
ahead of schedule to meet the 
end-of-project target. Therefore, 
as of 12/31/01, this target is 
essentially being met.
Y The training strategy has 
changed since the elabor￾ation of the DIP and not 
every one of those saving has 
been trained. Training is now 
offered independently of 
saving, and is open both to 
those who are financial 
clients of the organization 
and to those who are not. 
Avance Chalco is now 
partnering with a local 
Mennonite Development 
Associates (MEDA) affiliate 
which specializes in training 
to deliver this service to re￾sidents of the Chalco Valley. 
No for year 2, 
see 
“accomplish￾ments”
Number of active of active 
borrowers
800 433 active borrowers on 9/30/01. 
803 active borrowers on 
12/31/01.
Y Neither indicator nor target 
changed
Yes for
Year 3
Valuation of loan portfolio $137,480 $ 168,077 on 9/30/01; $349,470 
on 12/31/01.
Y Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 2 Organize training for clients
Recruit clients
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc44
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully Met?
Capitalize loan fund and issue loans
Objective 3: Establish significant program depth
Percent of women 
participants
95% 69 percent of participants are 
women
Y As reported in the Year One 
Progress Report, the program 
no longer has women as an 
exclusive target. Women are 
focused on but men are not 
excluded.
No
Number of women staff 5 Seven staff, all but the director, 
are women
Y Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 3 Recruit women participants
Recruit women staff
Objective 4: High program efficiency
Percent of portfolio in default Less than 5% 9.9% Y The majority were loans 
disbursed before two 
changes were instituted: 
One, a system for rewarding 
loan officers on the basis of 
portfolio quality was 
implemented, two, loan size 
maximums were lowered 
substantially.
No
(NOTE: EDI 
acknowledges 
that it made a 
mistake in not 
“ramping up” 
its target over 
years)
Client/average FTE staff 133 borrowers
366 savers
94 borrowers per staff and
223 savers per staff
as of 12/31/01
Y
Y
The no. of loan officers were 
increased in order to service 
the unexpected growth in 
borrowers
No
No
Activities for Obj. 4 Educate clients on importance of repayment
Follow-up delinquencies
Train loan officers
Keep overhead low
Objective 5: Progress towards sustainability
Percent cost coverage 58% 84 % Y Larger loan portfolio than 
expected and higher interest 
rates than anticipated has 
helped improve Avance 
Yes for
Year 3
Percent client retention 75% N/A Y This indicator was included 
in the planning matrix in 
error. In the narrative portion 
of the DIP for Amextra, in 
section E “Sustainability 
Strategy” this is, correctly, 
not included among the 
indicators listed. Avance 
does not encourage constant 
N/A
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 45
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully Met?
borrowing, so retention is not 
appropriate
Interest income per staff 
member
$6,935 $8,449 Y Neither indicator nor target 
changed
Yes for
Year 3
Activities for Obj. 5 Keep repayment rates high
Provide excellent service to clients
Objective 6: Achieve significant impact
% business borrowers with 
increased sales in last 12 
months
67% 29% Y Data are based on a less than 
100% survey of borrowers. 
EDI believes, also, that it is 
difficult for borrower to 
attribute increased business 
sales to a loan
No
% business borrowers with 
increased household income 
in last 12 months
50% 56% Y Neither indicator nor target 
changed
Yes for
Year 3
% savers using savings to 
buy food, clothing, medical 
care, home improvements or 
children’s education in last 
12 months
70% N/A Y Information on this indicator 
was inadvertently omitted 
from the September 2001 
survey. It will be included in 
2002 – final -- survey
N/A
Activities for Obj. 6 Annual surveys
HIRO Planning Matrix
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully 
Met?
Goal: To enable poor women in Western Romania to develop and manage profitable microenterprises that improve their standard of living.
Objective 1: Establish Integra institutional capacity to deliver micro-enterprise credit and training services in Romania
Registered Romania 
organization
In place HIRO is registered as an NGO 
for training and as an Ltd. for 
loans
Y Neither indicator nor target 
changed
Yes for 
Year 3
Board of Advisors In place Board is to be expanded in 
membership in near future to 
make it less dependent on EDI 
and the matching grant
Y Neither indicator nor target 
changed
Yes for 
Year 3
Qualified program director In place Qualified Program Director, Ms. 
Florica Cherches, in place. 
Y Neither indicator nor target 
changed
Yes for 
Year 3
Number of qualified loan 
officers
4 Five loan officers are in place 
and working
Y Neither indicator nor target 
changed
Yes for 
year 3
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc46
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully 
Met?
Qualified MIS In place Integra MIS installed Y Neither indicator nor target 
changed
Yes for 
Year 3
DOSA Improved DOSA 
score over two years
First year DOSA carried out in 
September, 2001
Y Neither indicator nor target 
changed
Yes for 
Year 2
Activities for Obj. 1
(a) Initial NGO registration made followed by research on new laws with consequent recent registration of HIRO Ltd. to carry out loans Prog. Dir. 
recruited and trained by Integra
(b) Integra MIS for client info., FIS for loan tracking, Quickbooks and CIEL for financial management installed
(c) Competent Financial Manager promoted from LO and trained
Objective 2: Achieve significant outreach among low-income women
Number of active borrowers 350 The target for Year 2 was 200 
active borrowers. The 
achievement was 154 borrowers.
Y HIRO experienced high loan 
defaults during its early 
loans and cut back on 
lending as one step in 
solving the problem
No
Number of loans disbursed 450 The target for Year 2 was 200 
loans disbursed. The 
achievement was 187 loans.
Y The reason is the same as 
explained above
No
Valuation of loan portfolio $185,500 The target for Year 2 was 
$101,800. The achievement was 
$66,856.
Y ·Again, the cause of low 
portfolio stems from an early 
reduction in loans made.
·Target is measured in US$ 
but inflation & devaluation 
were significant cause of low 
result
No
Percent of women 
participants
100% The target for Year 2 was 
100%. The achievement was 
97%.
Classification 
of borrowers 
by gender is 
somewhat 
arbitrary and 
was difficult 
to verify.
The program no longer has 
women as an exclusive 
target. Women are focused 
on but men are not excluded. 
No
Activities for Obj. 2 (a) Survey of applicants and analysis of secondary data for market research
(b) Much time spent early on by LOs to clean problem loans and adjust borrowing requirements
(c) LOs trained more to improve loan servicing and client follow-up and support
Objective 3: Implement successful business training
Number of women trained 370 The target for Year 2 was 225 
women trained. The 
accomplishment was 219 
women trained.
Y The deviation from Year 
Two target was insignificant
No
Percent of business plans 
accepted
80% The target for Year 2 was 80%. 
The achievement was 89%.
Y Neither indicator nor target 
changed
Yes for 
Year 3
Activities for Obj. 3 (a) Integra training modified
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 47
Goal/Objective/ 
Activity Indicator
End of Project 
Target Accomplishment
Data 
verified?
Explanation for Change 
in Indicator or Target, if 
any
Target
Fully 
Met?
(b) Formulating Bus. Plans was made part of course and thus improved quality
Objective 4: Achieve program efficiencies
Percent of portfolio in default Less than 5% The target for Year 2 was less 
than 5% in default. The 
achievement was 7.3%.
Y All borrowers in default 
were from the first two 
training sessions and are still 
reflected in overall figures
No
Loans per staff member 47 The target for Year 2 was 34 
loans per staff member. The 
accomplishment was 19.
Y Number of loan officers was 
increased from 4 to 5 in 
order to better service 
clients, review applications 
and verify data, assist in 
business plan preparation 
and reduce default
No
Activities for Obj. 4 (a) Analysis of initial high default rate and formulation of changes
(b) Extra (5th) LO was hired
(c) Additional requirements to approval added to process
(d) Counseling of applicants 
Objective 5: Progress towards sustainability of MED institution
Percent cost coverage 49% The target for Year 2 was 30%. 
The accomplishment was 42%.
Y Neither indicator nor target 
changed
Yes for 
Year 2
Interest income per staff 
member
$2,700 The target for Year 2 was 
$1,100. The achievement was 
$3,381.
Y Neither indicator nor target 
changed
Yes for 
Year 3
Activities for Obj. 5
Objective 6: Achieve significant impact
Percent of clients 
experiencing increases in 
business sales in the last 12 
months of program
75% The target for Year 2 was 75%. 
The accomplishment was 64%.
Y It is difficult, from the client 
surveys, to determine impact 
on sales. HIRO plans to ask 
clients directly in a uniform 
manner as part of reporting
Also, de-valuation had a 
significant effect on impact
No
Percent clients experiencing 
increases in household 
income in last 12 months in 
the program
50% The target for Year 2 was 50%. 
The achievement was 64%.
Y Neither indicator nor target 
changed
Yes for 
Year 3
Activities for Obj. 6 (a) TA and training provided to clients from beginning of loan in development of business plan to advise throughout loan implementation
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc48
ANNEX C: EVALUATION SCOPE OF WORK *
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 49
STATEMENT OF WORK
FOR
Enterprise Development International (EDI)
MATCHING GRANT EVALUATION
MATCHING GRANTS PROGRAM
OFFICE OF PRIVATE AND VOLUNTARY COOPERATION
BUREAU FOR HUMANITARIAN RESPONSE
U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc50
EVALUATION SCOPE OF WORK
“Evaluation is a relatively structured, analytical effort undertaken selectively to answer specific 
management questions regarding USAID-funded assistance programs or activities.” (USAID 
ADS chapter 202.4). An evaluation scope of work (SOW) is a plan for conducting an evaluation. 
A good SOW provides clear directions to the evaluation team. 
PVC uses information from the evaluation of the programs it funds as part of a yearly results reporting
process. In order to get more consistent information across all Matching Grants (MG) funded programs a 
standard evaluation format is used. The questions in this evaluation SOW are the questions that PVC is
asking in all programs. EDI has reviewed this the template for this SOW and its comments have been
added so that it reflects their specific information needs. 
The evaluations PVC is carrying out have two purposes: First, to assess the PVO’s compliance 
with the terms of its DIP, for which the PVO will be held accountable and, second, to learn 
lessons about the impact of the grantee’s activities without holding the PVO accountable for its 
achievements or lack of them regarding particular impacts. Where evaluation questions refer to 
impacts or lessons learned in areas which do not apply to the DIP of a PVO, the evaluation will 
make an appropriate notation in the text.
I. PROGRAM IDENTIFICATION
Enterprise Development International
Matching Grant for
Capacity Building for Microenterprise Development in Mexico, Romania and U.S. 
Headquarters
Award No. FAO – A – 00-99-00055-00
Evaluation Date: September 26, 2001 to December 21, 2001
PROGRAM BACKGROUND
The EDI program includes three activities:
Mexico --
Avance Chalco is a microenterprise development organization which provides savings accounts, small
loans, and business training to low-income residents of the Chalco Valley, outside Mexico City, Mexico. 
Avance Chalco began operations in 2000, and is a subsidiary of the Mexican Association for Rural and
Urban Transformation (AMEXTRA), a local nonprofit development organization. Both AMEXTRA and
Avance Chalco are partners of Enterprise Development International. Avance Chalco is AMEXTRA’s
flagship microenterprise development program, and replication of its methodology in other areas of the
country in which AMEXTRA works has already begun, most notably in Chiapas.
Romania --
Help Integra Romania, or HIRO, is a microenterprise development organization which provides business
training, mentoring, and small loans to low-income women in Oradea, Romania. HIRO is affiliated with
the Integra Foundation, a network of institutions dedicated to the development of micro, small and
medium-sized enterprises in Central and Eastern Europe. Both HIRO and Integra are partners of
Enterprise Development International. HIRO’s mission is to advance the social, material and financial
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 51
well being of women with entrepreneurial spirit in Bihor County, in western Romania. HIRO’s offices are
located in the city of Oradea (population 225,000), five miles from the Hungarian border.
The Planning Matrices for headquarters, Mexico and Romania are shown in Attachment A.
Indicate what information and data are available for the external evaluator. PVC 
already sent a document that will give you an excellent idea of the documents that 
should be assembled and preparation needed prior to an evaluation. 
ß Include documentation of any changes that have taken place since the initiation of the 
program.
PURPOSE OF THE EVALUATION
This section should contain two components --- (1) identify the evaluation audience and 
(2) establish a set of evaluation questions that are relevant to each audience.
Outline the information needs of the evaluation audience (PVC, and local partners), and 
how each partner will use this information. 
ß Who wants the evaluation information,
ß What do they want to know,
ß What will the information be used for, 
ß When will it be needed, and 
ß How accurate must the information be?
For example: The final (or mid-term) evaluation fulfills the requirements of the 
USAID/BHR/PVC Matching Grant (MG) Program. The MG program will use the 
information to: assess how well the MG is meeting its objectives; determine patterns and 
emerging issues across all MG funded programs; determine technical support needs for 
grantees shape new RFAs and to review of any follow-on proposals; develop internal and 
external documents to demonstrate the effectiveness of the MG program and to share 
lessons learned with the entire PVO community. PVC will use information outlined in the 
SOW template in its annual Results Report and in USAID's annual report to Congress. 
Achievements cited in the evaluation need to be supported by evidence and should be 
verifiable. Observations on data quality or constrains to interpretation should be stated as 
data from these evaluations is used for USAID reporting purposes and is subject to 
audits. Technical/program opinions and observations are an important element of the 
evaluation --- but should be stated as the evaluator estimate, opinion or forecast.
THE EVALUATION QUESTIONS
The following are a set of questions that the MG division is asking in all evaluations. These questions
relate to the objectives of the MG division and PVC’s strategic plan. The evaluator team will assess the
following program and institutional questions, provide evidence, criteria for judgment and cite data
sources. The evaluator will assess both headquarters and the country-level programs. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc52
A. Program Implementation
1. Assess in qualitative terms the balance between the effectiveness of training activities 
as compared to the order-of-magnitude costs of delivering them.
2. Assess progress towards each major objective
ß Based on the program’s planning matrices, determine if the program 
objectives have been met, partially met or were unattained. This is the single 
most important element the evaluation must document and discuss. In addition 
to the discussion of project results in the text of the evaluation, this 
information should also be put into matrix format. List each objective, and key 
outcomes at the effects and/or impact level. In the text:
ÿ Identify major successes and constraints in achieving objectives and 
unanticipated effects.
As part of this discussion comment on EDI and its local partners’ 
capacity to do program monitoring and evaluation. Note any 
constraints that prevented from measuring achievement of program 
objectives. If the program does not have “baseline” and end-of￾project data from which judgements can be made about the 
achievement of project objectives, this should be noted. (A more 
detailed discussion of monitoring and evaluation should be covered 
in Section ___ of the report)
ÿ Identify if the project had a detailed implementation plan and the 
familiarity of field staff with the project design, implementation plan 
and monitoring and evaluation plan and data.
ß Assess effectiveness of models, approaches or assumption that underlie the 
project. Has the approach been scaled-up in the project area or replicated 
elsewhere in country or in other countries? 
ß Has EDI engaged in program or policy advocacy? What was the focus of the 
advocacy and effects
ß Discuss what EDI and its local partners have “learned” implementing this 
project. Identify if these “lessons learned” have been applied elsewhere (other 
projects or countries)
3. Assess the status of partnership(s) with NGOs, community based organizations or local level 
government. 
ß Include a chart that:
ÿ Categorizes local level partners. Are the partners: NGOs, affiliates of 
EDI, private or commercial groups, cooperatives, community-based 
organizations, regional or local governments or intermediate service 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 53
organizations? 
ÿ Identify the type of mechanism employed with each partner, i.e. MOU, 
sub-grant, contract.
ÿ Outline the roles, responsibilities and decision-making responsibilities 
of the partners. 
ÿ Identify the fiscal autonomy and amount of grant funds directly 
managed in past year.
ß Assess the process that EDI used to build and maintain local partnerships.
ÿ Does EDI have a partnership policy and approach to assess potential 
partners?
ÿ Did EDI do a formal assessment of local partner capacity and develop 
plans to build their capacity? 
ÿ Document change in local partner capacity.
ÿ What were the major constraints to effective partnerships?
ÿ Has the project increased the local partners’ access to information 
technology? How?
ß Assess the local level partners’ satisfaction with the partnership.
ß Assess EDI and its local partners’ involvement in local networks or with 
intermediate service organizations.
4. What effect did participation in networks or service organizations have on the operational or 
technical capacity of the local partner? What would make it more effective? Cite the major 
implementation lessons learned and recommendations
5. If this is the case of a first grant to the recipient PVO by PVC, are there particular issues that 
can be identified for a new PVO and the development of its relationship with PVC.
ß How “mature” has the PVO/PVC relationship gotten over the course of the grant?
ß Is a three-year grant adequate for developing a working relationship such that the 
PVO’s objectives can be expected to be achieved in the given timeframe?
ß Does the AID/PVC mechanism fit well with a new PVO grantee?
ß What problems does the new PVO have in adjusting to these management 
mechanisms?
B. Management Capacity/Institutional Strengthening
The objective of the MG is to build EDI headquarters and field organizational and 
technical capacity. This section of the evaluation should assess change’s in operational 
and management capacity (organization, structure or quality of planning and 
management) as a result of PVC grant. 
ß Strategic Approach and Program Planning 
 Have changes occurred in EDI headquarters capacity to: 
ÿ manage the planning process --- program renewal, strategy integration, project 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc54
design; 
ÿ address over-arching program issues of replicability, scale-up, sustainability, 
ÿ Use performance data to forecast emerging trends and develop strategic plans?
ß Country Level Initiatives 
Identify and assess (if relevant), EDI contributions in the following areas: 
ÿ EDI cooperation and coordination with the USAID mission and 
other development partner programs including natl./local government 
agencies; 
ÿ EDI advocacy activities: issues, goals, partners and results (Has 
EDI used project data for advocacy with the public sector or consistently 
shared lessons learned with other EDI’s in country or with non-partner 
NGOs?);
ÿ If the country or program area has a history of violent conflict, 
other man-made/natural disasters, or food insecurity:
(a) EDI activities in conflict prevention, mitigation, 
resolution or post-conflict transition 
(b) EDI's contingency plan to ensure the safety of program 
staff and program continuity. 
ß Monitoring and Evaluation
Has the project implemented a process and put into place a sustainable system to 
monitor project performance and collect results (effects or impact) data? Provide 
evidence that the project:
ÿ Established results oriented objectives and valid indicators for the 
technical intervention and capacity building components in the project; 
collected valid baseline data, and made realistic plans to collect end-of-project 
data and analyze differences; analyzed performance data and used findings to 
manage the project. If this is a final evaluation, has EDI acted on 
recommendations from mid-term evaluation?
ÿ Improved the knowledge and skills of field staff on how to measure 
performance and analyze data.
ÿ Transferred monitoring and evaluation skills to local partners? 
- What changes have occurred in the capacity of the local partners to 
measure program performance and impact?
- Have local partners increased M&E in their own activities (non-PVC￾funded programs) as a result of skills gained through this project? 
- What would accelerate the capacity of the local partners to document 
performance?
Determine if EDI has used the MG to develop a sustainable capacity at headquarters 
and in the field offices to monitor project performance and measure effects and 
impact. Has EDI headquarters:
ÿ fostered analysis and self evaluation in country programs, or conducted 
quantitative or qualitative analysis to refine interventions;
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 55
ÿ conducted periodic review of performance data by project personnel and 
taken actions as a result of review;
ÿ institutionalized performance monitoring and impact evaluation systems 
developed with MG funds into other non-PVC grant funded programs, and; 
What were the biggest constraints to improving project monitoring and evaluation 
and what are the recommendations for PVC and EDI?
ß Sustainability 
ÿ Does the project have a system for addressing financial or operational 
sustainability? 
ÿ Does the project have a business plan?
ÿ Describe the program elements, financial or operational, that are 
intended to be sustained (objectives); the means for judging if the 
sustainability objectives have been achieved (indicators); and 
sustainability achievements and prospects for post-grant sustainability.
ÿ Identify if the project has any cost-recovery mechanisms, i.e., local 
level financing or approaches to generate resources to support project 
operations. Describe the achievements of these mechanisms and 
provide an estimate of the magnitude of the system, for example, 
provide a ratio of costs recovered to operational expenses.
· Other Management Systems 
Financial Management
ÿ Are adequate financial monitoring systems in place?
ÿ Has the program leveraged additional resources (beyond the match)?
ÿ How cost-effective is the technical approach?
· Information Management
ÿ Comment on the utility and timeliness of EDI’s required reports.
ÿ Has EDI developed, disseminated and used “lessons learned” from the 
project?
ÿ Information Technology
Logistics 
ÿ Comment on the adequacy and timeliness of EDI’s material inputs.
ß Supervision/HRD 
ÿ Assess if there were sufficient staff with the appropriate technical and 
management skills to oversee program activity at both headquarters and in the 
field program
ß USAID Management
Comment on USAIDs oversight and backstopping of this cooperative agreement. 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc56
Cite the major management lessons learned and recommendations
V. EVALUATION METHODOLDOGY
A. Approach
EDI’s program was developed and funded prior to the Agency's emphasis on results￾oriented program designs and the development of PVC’s Strategic Plan. The data from all 
PVC-funded programs is critical to PVC's ability to report on achievements against the 
Office's Strategic Plan. Until all current PVC-funded programs have made the transition 
to a more results-oriented project plans, it will be necessary for the evaluator to conduct a 
team-planning meeting with and local partners to:
® refine and consolidate the purpose-level objectives and outputs into a set of 
results-oriented objectives; and
® Agree upon a set of appropriate indicators against which the evaluation will 
assess the achievement of project results outlined in the SOW and will be 
judged. And where necessary, identify criteria for judgement. 
B. Methodology
The Evaluator will:
® explain the appropriateness of using the data collection approaches; 
® use the Agency's microenterprise (ME) indicators to interpret the status of the 
ME intervention;
® document data sources (data constraints, quality, etc.); and
® Provide, a copy (electronic or paper) of all primary data collected and 
analysis performed. 
VI. TEAM COMPOSITION AND PARTICIPATION
INSTRUCTIONS:
Based on tasks outlined and the emphasis of each evaluation section determine skills 
needed and who will participate in the evaluation team ---- PVO, NGO and AID staff. 
Outline:
- Roles and responsibility of team leader and members
- Language requirements
- Technical expertise, or country experience
- Evaluation methods and data collection expertise
VII. SCHEDULE
INSTRUCTIONS:
Determine: 
- Time needed at headquarters
- Time needed in the field 
- Time necessary for report writing 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 57
VIII. REPORTING AND DISSEMINATION REQUIREMENTS
INSTRUCTIONS:
- The SOW will serve as the outline of the report 
- Delivery schedule
- Review/revision policy 
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc58 58
ANNEX D: SOLIDARITY GROUP SUMMARY INFORMATION FOR AVANCE CHALCO
Debt Status Group Statistics Current loans
Reasons for group 
initiation Group Measures Promoter Measures
Solidarity Group 
Name Promoter
In debt? 
(Frozen)
Frequency 
of debt
Problem 
Group
Months in 
Program
Number 
Members
Loan 
Scale
Economic 
Level
Basis of 
member 
relationships Number
Total 
Amount
Loans typically 
takes out for 
what purpose
New 
groups
Spin-off 
Groups Attendance
Savings 
commitment
Loan 
repayment Promotion Follow-up
Ferias Unidas Alejandra No Low No 1 9 0 High
Business 
Neighbor 0 $0 Business
Make $ for 
business New New New High Low
Mirador Alejandra No High No 4.25 20 1 and 2 High
Business 
Neighbor 22 $65,521 Business
Make $ for 
business Low Medium High High Low
Limite Alejandra No Low No 1.25 18 0 High
Business 
Neighbor 0 $0 Business
Make $ for 
business New New New High Low
Pescadores Alejandra Yes Medium No 15 7 3 High Church Family 4 $12,440 Business
Church/ 
Steev Low High Medium High Low
2001 (2)
Irma 
Alejandra Yes High Yes 13 13 2 Medium 14 $9,000 Frozen Low Low Low Medium High
Esmeralda Irma No Low No 3 9 2 Medium Family Friends 6 $14,788
Family and 
Business Medium High High Medium High
Osiris Odi No New New 0.75 16 0 Medium
Friends 
Business 0 $0
Will go for 
business
Learned 
from other High New New Medium+ Medium+
Dario-2 Irma No Low No 12 12 Medium Family Friends 11 $35,904
Family and 
Business
Left poor 
performing High High High Low High
Chicos de Odi Odi No Low No 2 17 Medium
Friends 
Business 8 $10,650
Will go for 
business
Learned 
from other High High High Medium+ Medium+
Luna Odi No Low No 1.5 15 Medium
Friends 
Business 0 $0
Will go for 
business
Came from 
Chicos de 
Odi High New New Medium+ Medium+
Asusena Marie No New New 0.75 10 0 Low
Friends 
Neighbors 0 $0
Will go for 
business
Word of 
mounth New New New High New
El Pino Marie No Low No 3 11 1 Low
Friends 
Neighbors 4 $4,292
Family and 
Business
Word of 
mounth New New New High New
La Tormenta Marie No Low No 10 Low Family Friends 4 $10,500
Family and 
Business
Word of 
mounth Medium New New High New
No groups visited Laura Medium- New
Definitions: Definitions:
Frequency of debt: A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers Loan purpose:
A categorization of the primary purposes for member loans based on evaluator questions and confirmed 
by Loan Officers
Problem Group: Avance considers certain groups (10 as of this evaluuation) as "problems" New groups: Groups that started as "new" to Avance
Loan scale: Avance allows groups to advance in borrowing limites, "scales", depending on various criteria Spin-off groups: Groups that started as "sin-offs", in one way or another, from othyer Avance groups
Basis of 
relationships:
A categorization of the primary bonds of members based on evaluator questions and confirmed by Loan 
Officers Group Measures:
Three categorical measures used by Avance to measure the "quality" of groups regarding their 
performance
Attendance: A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
Savings commitment: A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
Loan Repayment: A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
Promoter Measures:
Two categorical measures used by Avance to measure the "quality" of loan officers regarding their 
performance
A categorical measure assigned by the Avance Coordinator for each Loan Officers
A categorical measure assigned by the Avance Coordinator for each Loan Officers
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc59 59
ANNEX E: CLIENT SUMMARY INFORMATION FOR HIRO
Debt Status Client Statistics Business Information Loan Information
Client
Name
Loan 
Officer
Written
Off?
Frequency
of loans
Plans
for more?
Months in
Program
Woman/
Man
Loan
Repay-ment
Economic
Level
Workers
Employed
Average
Salary/
mon.
Loan 
Amount
(milliions)
Loans typically 
takes out for what 
purpose?
Geographic
Location
Nature of
Business
Maria Crai Anca No 1st Yes 1 Woman Beginning middle 2 33.00 But out partners Salonta Auto parts retailer
Gavril Stranici Anca No 1st Yes 5 Man Good mid-high 35-40 $80 33.00 Salonta Shoe manufacturer
Floare Boglut Monika No 1st Yes 6 Man Good mid 2 25.00 Buy supplies Salonta Funiture maker
Sorin Capota Monika No 1st 2
Man 
w/wife Good mid 2 30.00 Buy raw wood Oradea Lumber retail
Irina Mangra Carmen No 2nd Yes 14 Woman Good low/mid 0 15.00
Buy fruits and 
vegetables Oradea Open market sale
Iuliana Birta Anca No 1st 3 Woman Good agric. 0 15.00 Buy pigs Hidisel Livestock
Doina Maria 
Lukacs Monika No 1st Yes 5 Woman Good low/mid 0 15.00 Buy inventory Oradea Open market sale
Halmagya 
Mirabela Alina Yes 1st 13 Woman Bad low 1 20.00
To pay for 
husband's funeral Oradea
Flower shop now,
Coffee Bar originally 
Gheorghe 
Vidican Dana No 1st Yes 6
Man 
w/wife Good mid 2 33.00
Inventory and 
repairs Santandrei Grocery then Internet Café
Victor and
Florica Bei Dana No 2nd 14
Man 
w/wife Good mid-upper 10 $70 25.00 Machines Cheresig Tailoring
Marcela Silaghi Alina No 2nd 16 Woman Good agric. 2
Varies/ 
Low 15.00
Watering hose, 
Supplies Parhida
Greenhouse/ Vegetables 
Coffee Bar
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc60
 GROUP SUMMARY INFORMATION FOR HIRO
Solidarity Group
Name
Promoter In debt?
(Frozen)
Frequency
of debt
Problem
Group?
Months in
Program
Number
Members
Loan
Scale
Economic
Level
Basis of member
relationships
Ferias Unidas Alejandra No Low No 1 9 0 High Business/Neighbor
Mirador Alejandra No High No 4.25 20 1 and 2 High Business/Neighbor
Limite Alejandra No Low No 1.25 18 0 High Business/Neighbor
Pescadores Alejandra Yes Medium No 15 7 3 High Church/Family
2001 (2) Irma Alejandra Yes High Yes 13 13 2 Medium
Esmeralda Irma No Low No 3 9 2 Medium Family/Friends
Osiris Odi No New New 0.75 16 0 Medium Friends/Business
Dario-2 Irma No Low No 12 12 Medium Family/Friends
Chicos de Odi Odi No Low No 2 17 Medium Friends/Business
Luna Odi No Low No 1.5 15 Medium Friends/Business
Asusena Marie No New New 0.75 10 0 Low Friends/Neighbors
El Pino Marie No Low No 3 11 1 Low Friends/Neighbors
La Tormenta Marie No Low No 10 Low Family/Friends
No groups visited Laura
Definitions:
"Frequency of debt" -- A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
"Problem Group" -- Avance considers certain groups (10 as of this evaluuation) as "problems"
"Loan scale" -- Avance allows groups to advance in borrowing limites, "scales", depending on various criteria 
"Basis of relationships" -- A categorization of the primary bonds of members based on evaluator questions and confirmed by Loan Officers
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 61
Current loans Reasons for group initiation Group Measures Promoter Measures
Solidarity Group
Name
Promoter
Number
Total
Amount
Loans 
typically takes 
out for what 
purpose? New groups Spin-off Groups Attendance
Savings
commitment
Loan
repayment Promotion
Follow￾up
Ferias Unidas Alejandra 0 $0 Business
Make $ for business from 
Mirador New New New High Low
Mirador Alejandra 22 $65,521 Business
Make $ for 
business Low Medium High High Low
Limite Alejandra 0 $0 Business
Make $ for business from 
Mirador New New New High Low
Pescadores Alejandra 4 $12,440 Business Church/ Steev Low High Medium High Low
2001 (2) Irma Alejandra 14 $9,000 Frozen Low Low Low
Medium/Hig
h High/Low
Esmeralda Irma 6 $14,788
Family and 
Business Medium High High Medium High
Osiris Odi 0 $0
Will go for 
business
Learned from 
other CAME High New New Medium+ Medium+
Dario-2 Irma 11 $35,904
Family and 
Business Left poor performing group High High High Low High
Chicos de Odi Odi 8 $10,650
Will go for 
business
Learned from 
other CAME High High High Medium+ Medium+
Luna Odi 0 $0
Will go for 
business Came from Chicos de Odi High New New Medium+ Medium+
Asusena Marie 0 $0
Will go for 
business
Word of mouth 
CAME New New New High New
El Pino Marie 4 $4,292
Family and 
Business
Word of mouth 
CAME New New New High New
La Tormenta Marie 4 $10,500
Family and 
Business
Word of mouth 
CAME Medium New New High New
No groups visited Laura
Definitions:
"Loan purpose" -- A categorization of the primary purposes for member loans based on evaluator questions and confirmed by Loan Officers
"New groups" -- Groups that started as "new" to Avance
"Spin-off groups" -- Groups that started as "sin-offs", in one way or another, from othyer Avance groups
"Group Measures": Three categorical measures used by Avance to measure the "quality" of groups regarding their performance
"Attendance" -- A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
"Savings commitment" -- A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
"Loan Repayment" -- A categorical measure assigned by the evaluator through observation and confirmed by Loan Officers
"Promoter Measures": Two categorical measures used by Avance to measure the "quality" of loan officers regarding their performance
A categorical measure assigned by the Avance Coordinator for each Loan Officers
A categorical measure assigned by the Avance Coordinator for each Loan Officers

H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc63
ANNEX F: LIST OF PERSONS INTERVIEWED
Name Organization.Title
Juan A. Benitez President and CEO, EDI
Kenneth W. Wesche Vice President, Programs, EDI
Georgia H. Emory Technical Director, EDI
Mark Petersburg Vice President, Development, EDI
Donald Webster Director of Finance and Administration, 
EDI
Lawrence Locklin Program Director, EDI
Philip Chalk Director of Communications, EDI
Omar Villagran Arjona Director Geneal, AMEXTRA
Steev Hargrave Coordinator, Avance Chalco
Eugenio Araiza Bahena Assist. Director for Operations, AMETRA
Santiago Victor Leal Board Chairman, Avance Chalco
Rosio Torreblanca Accountant, Avance Chalco
Alejandra Lopez Loan Officer, Avance Chalco
Irma Rosa Loan Officer, Avance Chalco
Odilia Montalvo Loan Officer, Avance Chalco
Marie Lourdes Vega Loan Officer, Avance Chalco
LauraBlanca Loan Officer, Avance Chalco
Howard D. Hood Vice President, North Am. Services, MEDA
Florica Chereches Executive Director, HIRO
Brett K. Howard Program Manager, Integra
Diana Hanga Financial Manager
Adriana Covaci Secretary and Cashier
Alina Plumbas Loan Officer
Dana Ghent Loan Officer
Carmen Gavra Loan Officer
Monika Mahr Loan Officer
Anca Hapca Loan Officer
Istvan Svabo HIRO Board of Directors
Ferenc Pastor Executive Director, Transylvania Business 
Forum
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc64
ANNEX G: SIMPLIFIED ACTIVITY AND FINANCIAL REPORTS
MEXICO AND ROMANIA
Simplified Activity and Financial Statement: Romania 
In US$ (Exchange rate used @ US $1 =____________)
Program and Country: FY00 FY01 FY02 year
ACTIVITIES (thru 
12/31/01)
1. Amount of loans outstanding, start of year 0 8,807 66,856
2. Amount of loans outstanding, end of year 8,807 66,856 71,799
3. Avg. amount of loans outstanding 734 57,682 72,498
4. Number of loans outstanding 9 154 143
5. Average loan size (line 2 divided by line 4) 979 434 502
6. Portfolio at Risk > than 30 days 0 15.8% 12.1%
7. Long run loss rate (line 16 divided by line 3) 0 7.3% 8.1%
 INTEREST RATES
8. Nominal interest rate charged by program 40% flat 40% flat 40% flat
9. 90 day CD rate 37% 31% 34%
10. Inflation rate 35% 27% 30%
CLIENT REVENUES
11. Interest income from clients 139 22,823 8,906
12. Fee income from clients 11 1,259 168
13. Total client revenues (lines 11 + 12) 150 24,082 9,074
 OPERATING EXPENSES
14. General Operating Expenses 
 (salaries, rents, utilities, etc.)
34,127 73,586 20,582
15. Depreciation of fixed assets NR 2,503 1,132
16. Loan loss provision expense 0 4,239 2,116
17. Total Operating Expenses 34,127 80,328 23,830
ADJUSTED FINANCIAL EXPENSES
18. Adjusted financial expenses
 (line 3 multiplied by the higher of line 9 or 10)
272 17,881 6,162
(1st qtr. only)
TOTALS
19. Total Expenses (line 17 plus line 18) 34,399 98,209 29,992
20. Financial Sustainability (line 13 divided by 19) 0.4% 25% 30%
OTHER
21. Total number of voluntary savers 0 0 0
22. Total voluntary savings outstanding 0 0 0
23. Percent women borrowers (of line 4) 100% 97% 93%
24. Percent rural clients (of line 4)* 16% 16% 16%
25. Total Number of staff 5 8 8
26. Number of field officers (credit staff) 2 5 5
27. Number loans outstanding with initial balance
under poverty loan level for your region.*
*5 *128 106
*estimated
Notes by line item
1. Amount of loans outstanding, start of year. Monetary volume of portfolio in US$. 
6. Portfolio at Risk Over 30 days. Divide unpaid balance of loans with payments overdue more than 30 days by the amount of loans
outstanding, end of year (line 2). Include as an attachment an aging of portfolio table: 1-30 days; 31-60 days; 61-90 days; over 90 days. See
chart below.
7. Long run loss rate. Divide amount of loans written off during the past year (line 16) by average amount of loans outstanding (line 3). 
16. Loan loss provision. Loans over one year delinquent should be added to write-offs.
19. Adjusted financial expenses. Cost of financing the portfolio at a 90 day CD cost of funds. This calculation avoids the need to adjust
separately for various forms of subsidy.
27. Poverty lending levels vary by region. For Africa, Asia and the Middle East it is <$300. For LAC it is <$400, and for the Europe & Eurasia 
region it is <$1,000.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 65
INS INSTITUTION: Aging of Portfolio Report: Romania
US$
Period: As of 12/31/01
# of Loans Outstanding Balance Percent
Current Loans 98 48,961 68.2%
1-30 days past due 20 13,852 19.3%
31-60 days past due 6 1,758 2.4%
61-90 days past due 2 405 0.6%
Over 90 days past due 17 6,823 9.5%
 TOTALS 143 71,799 100%
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc66
FINANCIAL RATIOS: Romania
Data as of 12/31/01
Profitability
Return on Equity (Net income/Average equity) -40%
Return on Assets (Net income/Average assets) -24%
Financial Structure
Net loans/Total Assets 39%
Investments/Total Assets 98%
Earnings
Portfolio Yield (Interest and Fee Income/Average gross portfolio) 45%
Management
Operating expenses/Average gross portfolio 33%
First loans/Total number of loans in period 74%
Percentage of first loans in period with initial loan balance at $300 or less 74%
Number field officers/total staff 63%
Number of borrowers/field officers 29
Percentage growth from one year ago in number of loans 83%
Stratification of Loan Porfolio
(on the basis of initial balance of loan)
No. loans under $300 5
No. loans $301-$500 27
No. loans $500 - $1,000 74
No. loans $1,001- $1,500 36
No. loans $1,501- $2,000 1
No. loans $2,000 - $3,000 0
No. loans $3,000 + 0
Total 143
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 67
Simplified Activity and Financial Statement: Mexico 
In US$ (Exchange rate used @ US $1 =____________)
Program and Country: FY00 FY01 FY02 year year
ACTIVITIES (thru 12/31)
1. Amount of loans outstanding, start of year 0 12,737 168,077
2. Amount of loans outstanding, end of year 12,737 168,077 348,594
3. Avg. amount of loans outstanding 3,842 92,120 281,820
4. Number of loans outstanding 35 433 803
5. Average loan size (line 2 divided by line 4) 364 388 434
6. Portfolio at Risk > than 30 days 0 21% 19%
7. Long run loss rate (line 16 divided by line 3) NR 9.4% 2.3%
 INTEREST RATES
8. Nominal interest rate charged by program 72% 58.5% 58.5%
9. 90 day CD rate 16% 14% 9%
10. Inflation rate 10.7% 7.3% 5.1%
CLIENT REVENUES
11. Interest income from clients 2,240 48,580 24,232
12. Fee income from clients 0 0 0
13. Total client revenues (lines 11 + 12) 2,240 48,580 24,232
 OPERATING EXPENSES
14. General Operating Expenses 
 (salaries, rents, utilities, etc.)
31,516 70,492 27,283
15. Depreciation of fixed assets 624 988 252
16. Loan loss provision expense 350 8,621 6,486
17. Total Operating Expenses 32,490 80,101 34,021
ADJUSTED FINANCIAL EXPENSES
18. Adjusted financial expenses
 (line 3 multiplied by the higher of line 9 or 10)
615 12,897 6,341
(1st Qtr only)
TOTALS
19. Total Expenses (line 17 plus line 18) 33,105 92,998 40,362
20. Financial Sustainability (line 13 divided by 19) 7% 52% 60%
OTHER
21. Total number of voluntary savers 282 1,261 1,700
22. Total voluntary savings outstanding 14,642 67,518 108,262
23. Percent women borrowers (of line 4) 74% 69% 70%
24. Percent rural clients (of line 4) 0 0 0
25. Total Number of staff 5 8 8.5
26. Number of field officers (credit staff) 3 5 5
27. Number loans outstanding with initial balance
under poverty loan level for your region.
NA *190 *352
* estimated
Notes by line item
1. Amount of loans outstanding, start of year. Monetary volume of portfolio in US$. 
6. Portfolio at Risk Over 30 days. Divide unpaid balance of loans with payments overdue more than 30 days by the amount of 
loans outstanding, end of year (line 2). Include as an attachment an aging of portfolio table: 1-30 days; 31-60 days; 61-90 
days; over 90 days. See chart below.
7. Long run loss rate. Divide amount of loans written off during the past year (line 16) by average amount of loans outstanding 
(line 3). 
16. Loan loss provision. Loans over one year delinquent should be added to write-offs.
20. Adjusted financial expenses. Cost of financing the portfolio at a 90 day CD cost of funds. This calculation avoids the need to 
adjust separately for various forms of subsidy.
27. Poverty lending levels vary by region. For Africa, Asia and the Middle East it is <$300. For LAC it is <$400, and for the 
Europe & Eurasia region it is <$1,000.
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc68
INS INSTITUTION: Aging of Portfolio Report: Mexico
US$
Period: As of 1/30/01
# of Loans Outstanding Balance Percent
Current Loans 545 $197,497 71.2%
1-30 days past due 89 $27,163 9.8%
31-60 days past due 28 $13,094 4.8%
61-90 days past due 10 $10,532 3.8%
Over 90 days past due 69 $28,833 10.4%
 TOTALS $277,119 100%
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc 69
FINANCIAL RATIOS: Mexico 
Data as of 12/31/01 (Loan Stratification through 9/30/01)
Profitability
Return on Equity (Net income/Average equity) -24%
Return on Assets (New income/Average assets) -16%
Financial Structure
Net loans/Total Assets 95%
Investments/Total Assets 66%
Earnings
Portfolio Yield (Interest and Fee Income/Average gross portfolio) 45%
Management
Operating expenses/Average gross portfolio 64%
First loans/Total number of loans in period 37%
Percentage of first loans in period with initial loan balance at $300 or less 80%
Number field officers/total staff 63%
Number of borrowers/field officers 161
Percentage growth from one year ago in number of loans 421%
Stratification of Loan Porfolio (as of 9/30/01)
(on the basis of initial balance of loan)
No. loans under $300 135
No. loans $301-$500 202
No. loans $500 - $1,000 72
No. loans $1,001- $1,500 13
No. loans $1,501- $2,000 8
No. loans $2,000 - $3,000 3
No. loans $3,000 + 0
Total 433
H:\INCOMING\06-26-MSI-final-EDI-evaluation\PVC EDI Final Evaluation Report.doc70
ANNEX H: EDI CRITERIA FOR INTERNATIONAL PROGRAMS AND 
PARTNERSHIPS
1) We target the very poor.
And there are lots of them: 1.3 billion living on less than $1 per day; half the world, more than 3 billion, 
living on less than $2 per day (based on data from The World Bank). While not all the world’s very poor 
are candidates for microenterprise, we seek to work with those who are economically active. These are 
people who have some skills and the will to work, but largely live without access to education, adequate 
health care, decent housing, a nutritious diet, or potable water. To a large degree, they are also people 
who often lack self-esteem, opportunity to advance, and hope. 
2) We work through local partner organizations.
Enterprise partners are locally registered, Christian non-profit organizations that have their own staffs and 
Boards of Directors. They are made up of people who speak the local language, understand the local 
culture, have ideas for appropriate solutions to local problems and truly "own" their organization and its 
work. They share our vision for how and why economic development should be done, and we join with 
them in addressing local problems. We typically provide technical assistance, training and funding; they 
implement. They are accountable to us through regular reports and good faith cooperation, but they are 
autonomous organizations – they do not report to us – rather, we serve them.
3) We implement sustainable solutions.
Enterprise works with its partners to design and implement programs that will become self-supporting. 
Most use revolving loan funds through which funds are lent to local entrepreneurs, repaid, and lent again 
in the community. Some programs use other means of cost recovery but the principle of sustainability is 
designed into each one. Our programs do not give hand-outs. We believe hand-outs crush initiative and 
create dependency. We provide opportunities for people to support themselves and fulfill their dreams, 
thereby building self-esteem and self-reliance while strengthening the community.
4) We are a Christian organization.
Our faith in Christ and his call to serve the poor are the motivations for our work. The life of Christ and 
his special attention to the poor and needy are the models for our outreach. Our programs never 
discriminate based on religion. On the contrary we purposefully reach out to needy people of any (or no) 
religious persuasion, seeking to demonstrate tangible Christian love. 
In short, we are in the business of providing people in chronically poor communities with what they need 
to transform their lives.