Aid to Artisans 331 Wethersfield Ave Hartford, CT 06114 T (860) 947-3344 F (860) 947-3350 www.aidtoartisans.org Pan-Africa Artisan Enterprise Development (PAED) Project MID-TERM EVALUATION Agreement No.: HFP-A-00-01-00023-00 July 2005 Program Director: Mary Cockram mary_cockram@aidtoartisans.org PAED mid-term evaluation © 2005 Aid to Artisans ii Table of Contents 1.1 EVALUATION PROFILE SHEET.............................................................................................. 1 1.2 SUMMARY OF CONCLUSIONS & RECOMMENDATIONS................................................ 2 1.3 PAED PROJECT BACKGROUND ............................................................................................. 4 1.4 PROGRAM EFFECTIVENESS................................................................................................... 5 1.4.1 PROGRAM APPROACH................................................................................................................... 5 1.4.2 ACHIEVEMENT OF OBJECTIVES ..................................................................................................... 6 1.4.2.1 Poverty alleviation, artisan income, and program impact on clients .............................. 16 1.4.2.2 Progress from the RISE final evaluation, October 2001 ................................................. 19 1.4.3 CROSS-CUTTING ISSUES.............................................................................................................. 21 1.4.3.1 Partnerships..................................................................................................................... 21 1.4.3.2 New tools, guidance, or standards................................................................................... 23 1.4.3.3 Advocacy.......................................................................................................................... 23 1.4.3.4 Conflict mitigation/prevention ......................................................................................... 23 1.4.3.5 Sustainability and scale-up .............................................................................................. 23 1.4.4 LESSONS LEARNED AND PROGRAM RECOMMENDATIONS .......................................................... 24 1.5 PROGRAM MANAGEMENT.................................................................................................... 26 1.5.1 MANAGEMENT APPROACH ......................................................................................................... 26 1.5.2 QUALITY AND STATUS OF DIP.................................................................................................... 27 1.5.3 FINANCIAL MANAGEMENT ......................................................................................................... 27 1.5.4 MONITORING AND EVALUATION SYSTEM ................................................................................... 28 1.5.5 INFORMATION SYSTEMS ............................................................................................................. 29 1.5.6 STAFFING AND SUPERVISION ...................................................................................................... 29 1.5.7 PVC PROGRAM MANAGEMENT................................................................................................... 29 1.5.8 PROGRAM MANAGEMENT LESSONS LEARNED AND RECOMMENDATIONS .................................... 30 1.6 EVALUATION METHODOLOGY........................................................................................... 30 APPENDICES .................................................................................................................................... 32 PAED mid-term evaluation © 2005 Aid to Artisans iii Acronyms ATA Aid to Artisans ANARTE National Artisans Association (Mozambique, now defunct) AMRP African Market Readiness Program BAT Shop Bartel Arts Trust Shop (South Africa partner) DIP Detailed Implementation Plan DTI Department of Trade and Industry, SA CCDI Cape Craft and Design Institute (South African partner) EOP End of Program FOB Freight on Board (price of product leaving country) FSC Forest Stewardship Council (certifying body for wood) KZN Kwa Zulu Natal province, South Africa LOP Life of program MRP Market Readiness Program (NY) M & E Monitoring and Evaluation MOU Memorandum of Understanding NYIGF New York International Gift Fair NGO Non- Governmental Organization PAED Pan-African Artisan Enterprise Development Program PVO Private Voluntary Organization RISE Regional Initiatives for Southern African Enterprises SARCDA South African Retail Chemist’s and Drug Association SMEs Small and Medium Enterprises USAID United States Agency for International Development PAED mid-term evaluation © 2005 Aid to Artisans 1 PAED mid-term evaluation July 2005 1.1 EVALUATION PROFILE SHEET Aid to Artisans Agreement #HFP-A-00-01-00023-00 October 2001-September 2006 Partners: Mozambique: ATA field office and artisan micrienterprises Tanzania: ADAT, Marvelous Batik, Mikono, Moto South Africa: BAT Shop, CCDI Beneficiary populations1 Country Men Women Total Mozambique2 1785 715 2500 South Africa 74 853 927 Tanzania 465 110 575 Total 2324 1678 4002 PVC-PVO match totals Year USAID/PVC ATA cash match ATA in-kind FY2002 $567,286 $615,257 $125,972 FY2003 $630,487 $596,398 $108,161 FY2004 $641,651 $338,957 $132,750 Evaluation start date: March 2004 and end date: July 2005 1 In addition to the main implementation countries, ATA worked with SMEs in Ghana and Zambia with match funding, or an additional 400 artisans. 2 The majority of Mozambican artisans are reached through an informational newsletter; the gender breakdown from the 350 artisans with whom ATA has an intensive program is extended to estimate the larger group. PAED mid-term evaluation © 2005 Aid to Artisans 2 1.2 SUMMARY OF CONCLUSIONS & RECOMMENDATIONS The goal of this evaluation was to determine overall progress toward goals and likelihood of meeting goals. In that regard, ATA’s PAED program is on track to meet goals by September 2006, the end of the USAID funding: ƒ Sales remains a primary indicator for Aid to Artisans because it reflects the importance that artisan enterprises place on actually selling product, and because facilitated sales during a project constitute a step toward long-term sales. Overall, South Africa is at 140% of sales goals, Mozambique at 90% of goal, and Tanzania at 80% of goal, or about six months behind. ƒ ATA is on track to reach the project goal for artisans benefited (4,750). Substantial numbers of new artisans will be reached in South Africa due to new partnerships already underway. However, since the majority of Mozambican artisans are reached through the informational bulletin, staff need to ensure that it reaches the intended audience and is useful and meaningful. ƒ In Mozambique, where the evaluator spent the most time in the field, artisan housing and workshops were generally better than surrounding houses. South African artisans reported that they were struggling financially, but also that they were providing for their families. Rural artisans report few other opportunities for cash income. Tanzanian business leaders reported that ATA’s training was useful and has helped them increase their businesses, but that US marketing links have not developed as expected. ƒ Most of the process indicators (see Table 2 for details) are either on track or ATA is using this information to make management decisions. ƒ ATA’s institutional strengthening goal, which focused on increased capacity to develop and deliver training programs in the field, has been met and surpassed, with several new training products in demand. One of ATA’s great strengths is its global network and its ability to create new linkages in the sector. Due to the expense of traveling between southern Africa and the US, the project was designed with limited in-person contact. More in-person time might have prevented the disintegration of the Amka partnership in Tanzania, and would certainly have led to a more robust followup plan for Tanzania. Moreover, the addition of face-to-face planning time in Mozambique has been beneficial in creating a unity of vision. ATA has been quite successful in raising the match required by this grant, although that has been challenging and stressful at time. The 1:1 requirement has led ATA to think more broadly about resources it could tap into, and pursue new funding sources, and after six years of match fundraising, ATA finally has match for the remainder of the project in place. The substantial relationships that the organization has with Kellogg Foundation in particular would not have happened as quickly without the matching grant. In Mozambique, the challenges of the external environment are daunting, including low levels of literacy and numeracy, weak businesses, poor infrastructure. In the face of these obstacles, the project has had remarkable successes with the woodworkers in Maputo and PAED mid-term evaluation © 2005 Aid to Artisans 3 Nampula. The lack of a strong exporter was identified as a key gap in the craft sector during the planning stages. Despite efforts to address, including training candidates, the project is nearing its end without this key function in place. There is strong market demand for product, but this advantage is tempered by the poor organization of the sector. ATA staff perform many export functions, which puts even more demands on staff that is already stretched. The Mozambique program urgently needs to finalize closeout for the PAED program and confirm, for example, what role a staff-led organization would play and how it would be funded. The Mozambique program has done good work in promoting good forestry practices, and these gains should be built into the close-out strategy. ATA’s Africa Market Readiness Program, conducted in Johannesburg, has been very well received; SMEs from around Africa have spent their own funds to attend the program. ATA’s strategy of South Africa as a regional market hub has been most successful for SADC countries. Tariff barriers constrained successful export to South Africa from other African countries. PAED mid-term evaluation © 2005 Aid to Artisans 4 1.3 PAED PROJECT BACKGROUND The PAED program was designed as a follow-on to RISE, ATA’s matching grant country programs in Mozambique and Tanzania, with an expansion into South Africa. The proposal describes PAED as helping “African craft break away from the stereotypes of Kente cloth and tribal masks and take its rightful place as an innovative provider of products that draw from deep cultural resources…so that Africa’s diverse and dynamic craft industry …generates economic and social benefits for Africans and substantially contributes to the economy” of Mozambique, South Africa, and Tanzania.3 PAED was to reach 5,700 artisans and broker nearly $3 million in sales through implementation of a comprehensive strategy to supply design innovation, access to important markets, and business trainings to artisan enterprises. ATA’s institutional strengthening goal focuses on strengthening and diversifying training products, in particular: ƒ a production mentoring program, whereby small producers will learn from experienced export oriented enterprises, ƒ an exporter training program, specific for new exporters to the US market using Mozambican exporters as initial participants, and ƒ an African Market Readiness Program (AMRP), modeled on ATA’s successful New York-based Market Readiness Program (MRP). In Mozambique and Tanzania, ATA focused on capacity building through scaling up production systems, organizational development for artisan groups and expanding services to reach more artisans. In Mozambique, ATA planned to nurture the creation of a Mozambican artisan association and continue to encourage and facilitate artisans’ involvement in the conservation of natural resources. In Tanzania, ATA intended to strengthen our partner organization’s capacity to work in commercial markets and in advancing artisans’ skills in design and building on their business knowledge, and phase out after three years. In South Africa, ATA partnered with the BAT Shop to begin to bring market-driven product development and market links to South African artisans, as well as to broaden ATA’s network to include other organizations, businesses, and craft sector service providers such as designers. The program planned to open opportunities for craft businesses across Africa to participate on a fee-for-service basis in years two through five. The expanded fee-for-service aspect of the program would allow ATA to extend its ability to recover costs and to encourage artisan investment in their own success. In October 2001 as PAED was launching, ATA had a solid field office in Mozambique, led by Regional Field Director Lorraine Johnson, and a worsening relationship with Amka, the Tanzanian implementing partner. For both countries, baseline data was determined to be 3 ATA’s PAED proposal, October 2000. The goal of PAED is to alleviate poverty among artisans in southern Africa by opening new markets PAED mid-term evaluation © 2005 Aid to Artisans 5 the final RISE indicators, which were simplified for PAED.4 Baseline data in South Africa was taken from BAT Shop’s previous year’s performance. None of the planned training modules had progressed past the idea stage. At the time of the evaluation, all three training modules are being implemented; a nascent Mozambican artisan association had disintegrated, but staff are planning an organization; after splitting with Amka, ATA worked directly with several craft businesses and organizations; BAT sales have increased substantially and ATA is expanding the South African network. 1 . 4 P R O G R A M E F F E C T I V E N E S S 1.4.1 Program approach ATA’s model has long been to upgrade the skills of artisan businesses, develop market-driven products, link producer groups to exporters and the global market, and then step back and allow the private sector to continue driving sales. This model still holds true, but ATA sees changes in the market that endanger the business model of our key buyers, the small importers. Adapting to these market shifts may well require additional expertise and customer service on the part of the exporter. In many projects, ATA sees a sharp increase in the potential and actual sales locally and regionally, and the need for ever-improving customer service. The research conducted for this evaluation shows that craft production can make a meaningful difference in the lives and livelihood of artisan clients, and that ATA effectively links artisans to local, regional, and global markets. ATA assumed that African artisan businesses cannot compete on price, but rather must compete on the basis of design and customer service, and this is still true, especially given the fierce and increasing price competition from China. The PAED program was designed drawing heavily from the RISE final evaluation, but even so, some assumptions that were designed into the project were less valid. In Mozambique, despite difficulties in finding an exporter during RISE, ATA assumed that the existence of Mozambican entrepreneurs willing and able to serve as an exporter. This has been more difficult than expected, and even foreigners in Mozambique, who are often the most successful exporters because of their cultural connection to the target market, have been hard to bring into the craft sector. ATA also assumed that it could effectively organize the Mozambican craft sector through an organization; this organization failed to really form and organization of even larger scale production that is demanded by the market is slow. ATA’s 4 See Tables 1 and 2 for indicators and baselines. ATA’s model of designing new products that combine existing skills or materials with market trends, continues to work (Tanzanian pillow covers). PAED mid-term evaluation © 2005 Aid to Artisans 6 gamble that the relationship with Amka could be salvaged did not hold true. Last, ATA has been able to identify fewer African SMEs than expected who might pay for marketing services, and has not been aggressive in recruiting those companies. 1.4.2 Achievement of objectives This section will review the results of program achievements against goals through September 2004, the end of the third year. Table 1 addresses the overall strengths and challenges in progress toward goals, and Table 2 covers progress on each indicator identified in the DIP. The last part of this section discusses the results of the artisan interviews, particularly as they apply to artisan livelihood. Sales remains a primary indicator for Aid to Artisans because it reflects the importance that artisan enterprises place on actually selling product, and because facilitated sales during a project constitute a step toward long-term sales. Overall, South Africa is at 140% of sales goals, Mozambique at 90% of goal, and Tanzania at 80% of goal, or about six months behind. We expect that the Tanzania project final number will end at about 90% of goal.5 5 The Tanzania activities, originally scheduled to end in September 2004, were extended to June 2005 to compensate for the time lost when the partnership with Amka disintegrated. PAED mid-term evaluation © 2005 Aid to Artisans 7 Table 1. Progress toward major goals Major objective Strengths Challenges, and constraints Capacity Building ƒ Improve ATA’s ability to produce training materials and deliver training to partners; ƒ Diversify and expand training programs; ƒ Improved ability to build artisan capacity ATA has developed 3 planned training modules (exporter training, production training, and Africa Market Readiness Program, or AMRP) and have presented them in several new venues, and an additional intensive module on costing and pricing. ATA shares basic modules with partners and new trainers greater reach (for example, our Guatemala partner has translated most of the MRP modules to Spanish, which ATA has used in our Latin America projects. We are adapting current curricula for different scale of enterprise and different literacy levels. When planning the exporter training module, ATA shifted to mentoring focus at the exporter’s facility, rather than at the importer’s facility, to better address constraints. ATA field staff meetings have synthesized lessons learned from different projects. Changing trends require constant updating of market-related information. Ensuring quality of presentation when training is done locally remains a challenge. Much of ATA’s mentoring is done one-on-one, effective but expensive. Effective training of the right lesson at the right time to the right, homogenous group, is always a challenge. The Africa Market Readiness Program (AMRP) is not currently less expensive than the New York MRP, due to smaller group size and Johannesburg-based costs. Most non-project participants in MRPs are funded through a third party, rather than paying their own way. Use IT to deliver services cost￾effectively and to market products. Information technologies shift rapidly, and so has our expectation of the best use of IT for ATA. Currently, in addition to ATA’s website that provides overall information about the organization, the website’s commercial client log-in and draws new wholesale and retail clients who ATA would not have met otherwise.6 ATA has not yet determined an appropriate link between buyers and non-project producers that maintains ATA’s reputation for screening both buyers and producers. Although we have done long-distance design, it has not used IT only to transmit the information, rather than to create it or facilitate a discussion. IT-based design is not a key priority for ATA. Increase earned income ATA developed a plan to provide both a first export opportunity to new program participants and an opportunity for earned income for ATA. This resulted in $250,000 in gross warehouse income in FY04, but a net loss of $30,000. 7 ATA did provide valuable feedback on the quality of export services and placed test orders with new exporters and producers. The earned income effort can be distracting from ATA’s main mission, and is inherently risky. ATA’s 2004 warehouse loss was greater than expected. ATA developed fee-for-service pricing for the Pan-Africa market link at a subsidized rate; however, many of the businesses unable or unwilling to pay a substantial portion of market-rate services, a combination 6 Website data from ATA’s IT manager. 7 Income data from ATA Finance. PAED mid-term evaluation © 2005 Aid to Artisans 8 of small-scale business and the expense of export marketing. Diversity funding sources and strategic alliances ATA’s strong relations with several large funders, reflect the effort required over the first several years of in project. In mid-2004, ATA was awarded $900,000 from the Kellogg foundation, for Mozambique and South Africa, and two $150,000 grants from the Ford Foundation, for Mozambique and South Africa. The Kellogg grant is actually more funding that ATA requested, and reflects what ATA expects to be a longer-term, deeper relationship between the two institutions. ATA is particularly proud that the field has been central in the cultivation of funders. For Kellogg, ATA’s deliberate, planned change from expatriate to local leadership of the Mozambique project was important. In addition, ATA is investing in Regional Rep for Africa, the former Regional Director who has a proven track record in fundraising. Field offices overall are participating much more actively in donor cultivation and proposal development. As funders increasingly seek to fund local organizations and as ATA’s network grows, we are deliberately expanding our network of craft-based organizations, developing proposals with those organizations, and providing targeted services while strengthening these partners. Overall growth in ATA’s budget included a higher percentage of USAID funds, so our funding diversity dropped in FY05 for the first time in years. However, ATA sees less opportunity for successful unsolicited proposals to missions, which has been an efficient and effective way to win project funds, and we expect a lower ATA budget in FY06 than FY05. A gap in staffing in development department in 2004 led to modest lag in fundraising. We have been slow to cultivate relationship with AGOA hubs ATA is new at relationships with the for￾profit development industry in general, and so are moving carefully but deliberately to pursue this opportunity for both corporate-level and project-level partnerships. ATA was slow to cultivate relationships with the AGOA hubs, too; although they include a craft component now, they were heavily focused on the textile sector initially. Offer services to artisan enterprises elsewhere in Africa (See 1.4.4 for lessons learned during ATA’s Pan-Africa SME project funded by the IFC. See Appendix 5 for the next evolution of ATA’s thinking on how to work with African craft SMEs.) With match funding, ATA offered participation in the AMRP and South African marketing to additional SMEs from Ghana and Zambia, and screened additional companies in Mali, and Swaziland. Additional funding from MEPI enabled ATA to open a small, two￾year project in Morocco that is funded through an amendment to the PAED agreement.8 ATA’s focus on Africa has resulted in small contracts in Madagascar. Fewer African exporters than expected can afford to pay a substantial amount toward marketing efforts— those that can do not need ATA assistance or are capable of getting grant resources on their own. 8 The Morocco project quarterly reporting is separate from this southern PAED mid-term evaluation © 2005 Aid to Artisans 9 The South African market is most appropriate for SADC countries which are not subject to import duties (although the strength of the rand makes product from most other countries increasingly marketable). ATA’s expertise in the SA market is growing. Increase public awareness of ATA Fourth ATA awards event in January 2005 drew 500 people, including many in the gift and decorative accessories industry. We surpassed the goal for media appearances relating to Africa. Well-known PR firm, Slover & Company, is now branding ATA. Gap in staffing in PR department may cause lag in media appearances in FY05. Tanzania: ƒ Enterprises effectively serve commercial markets ƒ Increased marketing and sales opportunities ƒ Independent creation of marketable product ATA shifted focus to match markets with scale of businesses, emphasizing primarily high-end local and regional markets. Marvelous Batik, a key business client opened a high-end local shop; other work is to foster linkages directly with buyers. Some local design capacity, but new markets are more demanding of more Tanzanian-themed product. After the split with partner organization Amka, ATA was reluctant to do another assessment of Tanzanian producer groups, which might have led to additional positive results. Sales results in the US have been disappointing, despite multiple attempts. Mozambique: ƒ Strengthen organization of artisan, export sectors ƒ Provide business development services ƒ Increase local staff fundraising and financial management responsibility ƒ Increased marketing and sales opportunities ƒ Scale up and expand impact of work ƒ Businesses sustainable at project end There is strong market demand for Mozambican products in regional and US markets. Several South African buyers are committed to long-term sourcing from Mozambique. To increase production capacity, ATA has linked producers to tools and is identifying sources of microcredit, and cross-trained different producer groups to increase production capacity. Local staff were instrumental in securing $1.2 million from Ford and Kellogg in 2004, and have independently acquired additional funding from the UN and other Mozambican sources. Additional local staff in the provinces has increased the quality and effectiveness of ATA’s reach. ATA’s local newsletter has been issued more regularly. Business skills are coming along. Maputo artisans much more sophisticated in costing, pricing, business planning than the Nampula artisans, who have had fewer interactions with the office. But even in Nampula, people are changing from associations to private enterprises. External facilitators of our Africa Market Artisan organization failed to coalesce; staff are seriously considering forming an organization or business to partner with ATA post-project. Mozambique’s good progress against main quantitative measures (sales and artisans benefited) mask key weaknesses in the program, specifically the lack of strong exporters, weakly organized production capacity, and a lasting problem of sustainable wood accessibility. Staff have worked hard on these issues, which have been identified for some time, but long-term solutions are slow to be effectively. Serious weaknesses remain in export services, production capacity, and business cash flow, despite ongoing efforts of staff to address these issues. Without an exporter, staff take on many of the export functions, which causes distortions in the market chain (although pricing markups assume a commercial player) and which is time-consuming for staff. The local newsletter is not a priority for staff and could be more effective in reaching the poorly-educated artisans in the province; the effectiveness of the PAED mid-term evaluation © 2005 Aid to Artisans 10 Readiness Program (AMRP) report that the Mozambican microentrepreneurs are much more prepared and able to absorb information than other participants, even South Africans for whom language is not a barrier. The Nampula artisans are more engaged in artisan work than in Maputo—they have more orders, and they produce more for the local market. Wood use: ATA has sought to use precious woods responsibly; encourage the use of alternate species; and foster improved forestry management, and had some success in each of these. Many artisans are harvesting or purchasing wood legally due to the large fine for illegal use. ATA’s wood bank provides a source of well￾managed sandalwood in Maputo. newsletter will be assessed in the 2006 evaluation. The project is well behind targets for number of businesses in local and international markets. Basket weavers in Inhambane were added to the project in 2004 and dropped in 2005, using staff time and resources without a substantial result. Wood use: African blackwood remains the most popular wood in the market, and artisans are not truly concerned about the long-term sustainability of the resource. We do not have a viable long-term strategy for the wood bank. South Africa: ƒ BAT Shop responds effectively to market demands; operational, training capacity stronger ƒ ATA builds strategic alliances in RSA, including additional partners ƒ More business for RSA artisans BAT Shop sales increasing, particularly in domestic market; producers and staff have positive evaluation of MRP; many buyer visits are independent of ATA; plans underway for BAT to have separate booth in local trade show. ATA has new partnership with CCDI; has identified more than a dozen South African designers and started a mentorship program with young designers; formed an ATA South Africa Trust to access local funding and sustain training and marketing work post-PAED. Joint activities with CCDI moving slowly despite good relationship; ATA increasing staff effort to jump￾start. Government funding, as expected, is bureaucratic to access. The strength of the South African rand, combined with the dollar’s weakness, make South African products extremely expensive in the US for the near term. The talented young designers we have identified so far are primarily white, although we continue to seek out and invest in young black designers. PAED mid-term evaluation © 2005 Aid to Artisans 11 Table 2. DIP results status DIP indicator Baseline Y3 Targets? Y3 Achieved? Data verified Comments Mozambique Number of competent exporters available to artisans 0 2 1 Yes Mozambique has a limited pool of entrepreneurs with the skill set required for success in export. ATA has identified half a dozen potential exporters, but only one actually exports. Number of trained exporters 0 2 2 Yes One trained businesswoman decided not to pursue craft export * Percentage of wholesale buyers who re-order within nine months 50% 75% 28% Yes Reported at 28%, but erroneously included buyers whose first order was placed less than 9 months previously: internal confusion on indicators. Data not available to reconfirm/recalculate percentage. * Percentage of groups with MOU that have a bank account 52% 80% 54% No Number of groups with bank accounts has increased, but not as quickly as total number of groups, resulting in lower percentage. * Percentage of groups with MOU that keep financial records 6% 20% 61% No Field staff report that most enterprises' financial records are not complete and accurate. * Business Knowledge gained in SA or US MRP n/a 20 point increase 20 point increase No This indicator has been met every year, but is of limited use. Number of artisan enterprises/associations register with the Ministry of Finance 0 4 4 No Number of local funders identified/develoed or renewed by local staff 0 3 3 Yes Mozambican staff skills are improving steadily. Number of proposals developed by local staff (with HQ and RFD) 0 6 3 Yes Number of proposals developed is under goal, but the local staff were essential in winning large proposals to Ford and Kellogg, as well as identifying smaller opportunities with Mozambican funders. Local staff managing financial reporting independently by year 2 Reg'l Field Dir submits Local staff submits Local staff submits Yes Mozambique office responds well to home office changing financial reporting format, and no major problems were identified in limited financial review. PAED mid-term evaluation © 2005 Aid to Artisans 12 Number of craft businesses with exposure in international trade shows by EOP 10 25 19 No Number of businesses with exposure in Mozambique annual holiday fair 10 34 18 No Have not identified new producers with a different range of product at a high enough quality for the fair. * Annual Local fair sales in USD $2,200 $7,000 $ 8,590 No Market in Maputo is still modest, but fairs are growing. Number of buyer visits 3 6 3 Yes * Total cummulative sales by EOP 33,000 $175,000 $ 151,104 Yes Mozambique sales are 15% under goal throughout project, but continuing to grow. Limited production capacity is major constraint to sales, as products are highly demanded in the market. * Number of artisans served during the LOP 1,350 2,500 2500 Yes Artisans served through intensive project activities is much lower, approximately 350. Other artisans are reached through the bulletin. Survey in 2005 will test assumptions about reach of bulletin. * Number of new product lines accepted into international markets 0 42 16 No Sales of existing product lines were still strong, so ATA focused more on increasing production capacity rather than new product development. * Percentage of orders that meet buyer quality control standards 60% 70% 70% Yes South Africa * Percentage of (new) wholesale buyers place repeat orders within 9 months 100% 90% 100% Yes Data sheets not available to confirm. 25 trainees to attend the MRP by EOP 0 15 22 Yes Additional GOSA funding allowed more South Africans to AMRP; most are not with the BAT shop Active participation of SA designers to use regional talent in providing design/technical assistance 0 6 5 Yes ATA actively seeking designers; match Ford Foundation funding obtained specifically to identify and hire young black designers, who are relatively scarce. Number of Craft Organizations visited and assessed by EOP 0 10 4 Yes ATA decided to found ATA South Africa Trust to access local funding and manage marketing and training activities long-term. PAED mid-term evaluation © 2005 Aid to Artisans 13 Transfer of AMRP to BAT by Y4 No AMRP BAT managing ATA implements 2x/year Yes ATA and BAT mutually agreed that ATA, rather than BAT, would implement the AMRP. ATA's newly formed ATA South Africa Trust will implement the training program, and is eligible for South African government funds for SA participants. Craft businesses with exposure in international trade shows by EOP 3 10 19 No All 19 microenterprises supply the BAT shop. Buyer visits 6 8 38 Yes Actual is number of visits, including local wholesale buyers and importers; target was intended for international buyers only, but recordkeeping does not allow disaggregation * Total cummulative sales of EOP $200,000 $ 325,000 $556,000 Yes BAT's reporting reviewed. ATA setting additional sales targets for CCDI businesses. * Percentage of orders meeting buyer control standards by EOP 70% 82% 90% No * Number of artisans served during the LOP 700 1000 927 Yes * Business knowledge gained in SA or US MRP 20 point increase 20 point increase 14 point increase No Previous years participants met (but did not exceed) the 20% goal. * Number of new product lines accepted in international markets 10 23 19 No Weaker dollar and stronger rand result in less price￾competitive products. Tanzania Increase in the number of enterprises selected 2 4 4 Yes Number of businesses with repeat orders 2 2 Yes Number of artisans served during the LOP 500 575 Yes * Total Cummulative sales by EOP $ 130,000 $ 235,000 $213,000 Yes * Business Knowledge gained in SA or US MRP 20 point increase 25 point increase No * Number of new product lines accepted in international markets 0 20 10 No In Y3, ATA modified marketing strategy toward local high-end buyers; regional buyers; and special events in South Africa PAED mid-term evaluation © 2005 Aid to Artisans 14 * Percentage of orders meeting buyer's quality control standards n/a 85% 77% Yes * Percentage of wholesale buyers place repeat orders within nine months 75% 0% Yes Buyers are expected to place additional orders, but have not met the 9-month time frame of the indicator Core program New standard artisan enterprise training modules established and accessible to field and headquarter staff by year2 n/a 3 modules materials further refined Yes EXPORT, PRODUCE, and AMRP curricula completed and tested. ATA Training Officer regularly updates MRP modules and makes them available to the field offices, which then edit them for local use. Use of Central Training Units in the field by year 3 n/a Completed Completed Yes Number of time curriculum used in the field n/a n/a Annually for each group No Strategy changed be be more demand-driven; groups had different needs. Three training modules to be revised and modified by EOP Ideas for modules n/a training materials further refined Yes Number of trainees that pay to particiapte in training n/a n/a 37% of training fees paid by third party Yes Fees paid by a third party, eg, the South African government, rather than by artisan microenterprises. However, SME participants have paid for their own travel and food, a substantial investment. ATA uses internet as marketing tool, recruiting new buyers 0 buyers n/a 691 buyers (July 05) Yes Only these registered buyers have access to product pricing; 32% are wholesalers, 68% retailers. Most are new to ATA. * 400 (African) products on site by EOP 0 200 163 Yes 447 products, total, on website as of July 05 Non-program business pay for 30% of Pan-Africa Market Link trade show expenses by EOP 0% 20% Approx 5% Yes Actual for Y3 was much well under goal, rather than above goal as reported in Annual Report; participating SMEs have paid for their own travel, meals, samples, shipping, and a nominal show fee, which is normally about 20-30% of the total cost. Number of media features promoting Africa as a source of innovative products 2 3 4 Yes Number of product placements in trade publications 2 3 3 Yes PAED mid-term evaluation © 2005 Aid to Artisans 15 Number of new funding relationships developed or renewed with non￾USAID funding institutions (excludes individual donors) 27 non￾USAID funders in FY01 15 15 Yes Indicator is inconsistently tracked as ATA evolves. Existing funders are awarding more and bigger grants, but total number of funders is actually shrinking. PAED mid-term evaluation © 2005 Aid to Artisans 16 1.4.2.1 Poverty alleviation, artisan income, and program impact on clients As part of the evaluation trip in June 2004, research assistants conducted 114 interviews with artisans in the three PAED countries (60 in South Africa, 35 in Mozambique, and 19 in Tanzania). ATA is vitally interested in its contribution to artisan livelihood; this section addresses those issues. This section also includes some comments from project clients about the project. Data summaries for each country are included in the appendices as well as a livelihood table in each section that summarizes answers to key questions. The artisans were selected in a variety of ways and thus do not constitute a random sample. Mozambique Mozambique remains one of the poorest countries in the world, and the project faces obstacles of literacy, numeracy, health, and infrastructure, among others. Artisans are clearly poor but not the poorest members of society; there is a subset of project clients that are able to meet household expenses and save money. Table 3 below details responses to some of the livelihood questions from the survey. Artisan homes and workshops that were visited during the assessment were usually slightly better than neighboring housing stock. Where ATA had provided small grants (usually $1,000), substantially better quality workshops had been built with additional artisan investment. Table 3. Mozambican artisan livelihood survey responses Mozambique Least poor Poor Poorest Comments How are craft earnings spent? Mostly on self: 27% Both Self and Household: 12% Mostly on household: 61% Compared to other countries where ATA has asked this question, this is a good response. Are you able to save? Yes: 55% No: 45% Surprisingly good Compared to your friends and neighbors, how is your household? Better than most: 13% The same: 47% Not as good as most: 40% Seems lower than expected given responses to other questions and overall Mozambican poverty. With the money that is brought into the household, is the household able to meet your monthly expenses? Most of the time: 22% Some of the time: 66% Rarely: 13% Respondents did not fall consistently in any one column. Reported ability to meet expenses did not correspond to the comparison with others. Monthly artisan income USD=20K MZM 2-2.5m MZM, 22% 1-2M MZM, 33% ($50-100) >1m MZM: 44% Non-craft income contributes substantially to household income. Household income 3-7m MZM: 25% 1-2m MZM: 38% 2-3m MZM: 19% >1m MZM: 19% Some of the largest households, with more income earners were most likely to meet needs. # income earners 3: 12% 4+: 12% 2: 39% 1: 36% Artisans have large households (mean 4.5) but three-quarters of the respondents had only 1-2 other income earners (average 2.3 total). PAED mid-term evaluation © 2005 Aid to Artisans 17 The overall comment from the research assistant in Mozambique who interviewed artisans was “as I understood the accomplishments of the artisans, they like [ATA] and they ask for help (equipment, finance and training), new product development and opportunity for more sales and orders.” Some Nampula-based artisans were very positive overall, pointing to the MRP in particular as important and “life-changing.” ATA clients were able to identify tools, machinery, and buildings that were the result of income earned through ATA market linkages and, in some cases, through ATA small grants. Other Mozambican artisans, however, seemed indifferent and complained about ATA’s work, despite the fact that most of their income comes from ATA buyers. This might be attributed to ATA’s long time frame in Mozambique, such that artisans are just accustomed to ATA’s project, which is certainly true; to cultural differences in the acknowledgement of impact; to a sense of entitlement as noted in South Africa; or that ATA’s work is simply not seen as valuable. In the March 2005 follow-up trip, however, which focused on post-project planning, artisans seemed surprised and concerned that the PAED program ends in 2006. South Africa KwaZulu Natal has one of the world’s highest rates of HIV and AIDS, and our survey found that respondents had large households (average 6) with few income earners (average 1.7). The survey showed a worryingly high percentage of respondents that could not save (87%); 43% who were worse off than friends, family and neighbors (43% think they were the same as others); and 75% who could “rarely” meet monthly household expenses (see Table 4). The few artisans who said they could meet their needs most of the time were all wire weavers. However, when asked an open-ended question about what the most important changes in their lives have been due to working with BAT Shop, 42% responded that they were able to provide for their families, and 18% said that they had financial independence. Further, artisans saw few other employment options open to them that would pay as well as artisan work. Most have little more than primary education. Alternative jobs might provide a fixed salary, but just 10% of respondents thought that they would be able to make more money at an alternative job. 15% volunteered that they were able to make more money with BAT than at alternate employment. Table 4. South African artisan livelihood survey responses South Africa Least poor Poor Poorest Comments How are craft earnings spent? Mostly on self: 8% Both self and household: 54% Mostly on household: 37% Are you able to save? Yes: 13% No: 87% Compared to your friends and neighbors, how is your household? Better than most: 13% The same: 43% Not as good as most: 43% With the money that is brought into the household, is the household able to meet your monthly expenses? Most of the time: 7% Some of the time: 18% Rarely: 75% PAED mid-term evaluation © 2005 Aid to Artisans 18 Household income US$=R6 >2000 rand/mo: 18% R1001- 2000/month: 34% $350 * does not account for inflation >MZM 3,000,000 >US$150 PAED mid-term evaluation appendices © 2005 Aid to Artisans 37 For the future, artisans wanted to learn how to make new products and how to use modern equipment. The other most common thing that artisans wanted to learn was English. Respondents wanted help in financing the cost of raw materials, equipment and in securing more orders for their products. PAED mid-term evaluation appendices © 2005 Aid to Artisans 38 Appendix 3. South Africa: BAT shop data analysis summary Interviews July 2004, data analysis February 2005 3.1. Background The questionnaire was semi-structured, consisting of both open-ended and close-ended questions. The artisans surveyed were selected in a number of different ways and therefore, do not consist of a random sample. Sixty artisans were interviewed. They were: ƒ All BAT shop suppliers ƒ 85% women; ƒ 67% working with telephone wire; ƒ the largest percentage (43%) had been working for 6-10 years in craft; ƒ 72% view craft as a long-term activity (for some at least because there is no appealing alternative); ƒ 43% had completed grade 9 or above and all had had some schooling; ƒ 70% were 30-49 years old; ƒ 35% were unemployed before working with BAT; ƒ 2/3 learned skills from their family. Work is quite steady (62% of respondents), especially the telephone wire baskets (74%). Artisans would like steadier work, especially over the winter, and of course they would like higher prices. 98% think that craft is more highly regarded now then in the past; no one thought it was less highly regarded. 3.2. Artisan income and livelihood Hours are long: 42% work 9-12 hours/day, and 35% work 13-16 hours. 58% work seven days/week; again, it is doubtful that this full amount of time is spent on craft. One of the two interviewers noted that “some crafters found it challenging to respond to questions… which aimed to determine the specific work hours” and “many were unable to comprehend the concept of working out specific working hours.” Artisan households average 6 people, with 45% of households earning less than R1000 ($165) per month, and 37% earning R1001-2000 (US$165-310; see Table 4 earlier in text). Half of the artisans are the sole earner in their households, and 71% contribute more than half of the household’s income. Of the other sources of income to households, 56% were government pensions or child support.1 No artisans reported any earned income from child labor. 32% have access to land which they use to grow food. Income is spent on: diet (92%), health (88%), school (78%), home (50%), and consumer goods (47%). 1 Please note that it’s not 56% of the households that were receiving government support, but rather more than of household members responsible for income (including multiple children in the same household receiving child support), received a stipend rather than earning it. PAED mid-term evaluation appendices © 2005 Aid to Artisans 39 There were very few men in the sample, but they tended to earn more, spend more on consumer goods, and be more likely to be the sole breadwinner. They were more optimistic about potential earnings at other jobs. Many of the artisans are clearly struggling: a worryingly high percentage (87%) say they can’t save; 43% say they are worse off than friends, family and neighbors and 43% think they’re the same as others; and 75% state they rarely meet monthly household expenses. The few artisans who said they could meet their needs most of the time were all wire weavers. However, when asked an open-ended question about what the most important changes in their lives have been due to working with BAT, 42% responded that they were able to provide for their families, and 18% said that they had financial independence. In addition, when a partial cross check against BAT payment records showed strikingly different payment, both more and less, than the self-reported income. Two thirds thought they would earn less than R1000 in an alternate job (79% are currently earning less than R1000, and 78% stated they earned less than R1000 in their previous job). Alternate jobs varied, but were low-skilled jobs. Just 10% said that they would be able to make more money at an alternative job and 15% said they were able to make more money with BAT than they could with other work. Several mentioned that working with BAT earned respect from peers due to a change from being a domestic worker, being able to open a bank account, or financially providing for their family. However, one interviewer found that many crafters actually failed to recognize other meaningful benefits their work carries other than money. Sadly, some crafters have had international exposure, quality training organized by BAT, skills in new designs, etc – but still fail to see anything positive and could not mention (without probing) how they have grown out of the experiences as individuals. A learning made while conducting the interviews is that, all those crafters who took part in the study are more concerned about money and getting more money – they do not attach much value in trainings. ATA’s interviewers pointed out two additional comments that they noted during the interviews: Generational differences: the younger generation displayed eloquence and confidence during the interviews. For most of them, it was easy to articulate their thoughts and feelings – unlike a few older people who found it hard even to understand the rationale behind some of the questions. Devaluation of women: one of woman crafter’s name is NGENZENI, literally translated as ‘what have I done?’ Asked about her parents’ motivation in the choice of name, she mentioned that her parents were hoping for a son when in their disappointment, a girl (herself) was born instead. This mentality is prevalent in most cultures, particularly African cultures, that boys are more important than girls as they carry the family name forward. The other lady by the name of SHOLIPHI, literally translated as ‘what a bad luck!’ mentions that she is a fifth child in her family, and the only child who was born prematurely (at seven months) by caesarean section. Some of the women interviewed had positive names, but in contrast, all the men who took part in the interviews have positive names such PAED mid-term evaluation appendices © 2005 Aid to Artisans 40 as VUSI (short for Vusimuzi), means ‘lifting up your family name’ and SIBUSISO which means ‘a blessing’. PAED mid-term evaluation appendices © 2005 Aid to Artisans 41 Appendix 4. Tanzania Data Analysis Summary Research conducted July-August 2004, analysis completed February 2005 The sample in Tanzania consisted of 19 artisans. The questionnaire was semi-structured, consisting of both open-ended and close-ended questions. The artisans surveyed were selected in a number of different ways and therefore, do not consist of a random sample. Because the sample size is small, no conclusions can be reached regarding media used or gender. 4.1: Background Although 84% of the 19 artisans surveyed were in their 30s or 40s, 47% had worked 10 years or less as an artisan, and 57% had been with their current company 1-5 years. None of the respondents surveyed had been to school beyond grade 8, and half had some primary education. Two-thirds of the sample were female, whereas ATA’s project overall works with 24% women. ATA interviewed three types of media users: almost 50% of respondents work with textiles, 26% with wood and 26% palm-strip users. Most of the artisans surveyed worked 8-9 hours day, with 21% working up to 11 hours a day. All the respondents stated that they worked 6 days per week. Almost 90% said that they were without work for 2 months of the year. All the 18 respondents interviewed stated that they felt that artisans were more highly valued than in the past three years. 4.2: Income and Livelihood Tanzanian artisan household size was mixed, with almost equal numbers of respondents having both large and small households, ranging from 9-10 to 1-2. In contrast, however, the maximum number of people contributing towards household expenses and income was 2. Despite the large household size with few income earners, almost 60% of artisans stated that they were able to meet their household expenses some of the time, while the remainder were able to most of the time. No-one was said they were only able to meet their expenses “rarely,” and all the respondents stated that their household was similar to that of their friends and neighbors. Most artisans surveyed did not own income-generating land; the Zanzibar-based basket weavers who work with Moto were the exception. Nearly 40% reported that they were not able to save, and about 40% reported that they contributed most of their income to the household (see Table 5 earlier in text). If they were not working in craft, respondents would turn to a range of alternative occupations, with the largest number to poultry/cattle farmers. Two respondents indicated that they earned more money working as a weaver, and although several artisans responded that their present job as an artisan was better than previous jobs, they did not provide reasons. PAED mid-term evaluation appendices © 2005 Aid to Artisans 42 Overall, artisans surveyed responded that the most important life changes from artisan work was that their income had increased and that they had developed better product and business skills. Respondents also said that they has learned to share their ideas, develop new ways of thinking and had gained self-confidence. Respondents indicated that the main reason for joining the business was due to necessity, in terms of money and employment. Prior to becoming an artisan, they were involved in a large range of occupations, ranging from carpentry to growing vegetables. One respondent was a teacher, while two were tailors. Several others were involved in farming related activities. 4.3. Artisan Learning Artisans learned their skills from their families and one the job. Respondents did not identify a single new skill learned in the project as most important, but in general, the artisans indicated that they had learned to make both improved and different products. Color combination, batiks and embroidery were specific skills that were mentioned. Beyond product and business skills, artisans had learnt to share their ideas, express their opinions and work with others. For the future, artisans surveyed was that they wanted to learn how to make new designs and improve the quality of existing ones. Two artisans also indicated that they would like to learn more about color mixing and develop their weaving skills. One respondent indicated a desire to learn about computers, while another wanted to pursue his/her secondary education. Four respondents said they would like more product development. 4.4. Artisan comments on businesses Regardless of the business they were with, respondents indicated that they were generally satisfied in terms of income and orders. Specifically, a number of artisans stated that they were happy with Moto because of the prices they received, Moto’s willingness to provide cash advances and its ability to obtain orders due to its access to markets. Several Moto respondents indicated that they would like transport from their village to Zanzibar and back because when returning to their village, they tend to carry large sums of money which makes them feel unsafe. MIKONO’s access to markets and the existence of their workshop for artisans to use were cited as positive. Two artisans said that they would like MIKONO to pay them more promptly. A few respondents suggested that ADAT employ a full time officer responsible for marketing, arranging, organization of trade shows and who would also be responsible for ensuring that ADAT members take part in various trade shows. PAED mid-term evaluation appendices © 2005 Aid to Artisans 43 Appendix 5. Field Research Travel Schedule, June 2004 Mary Cockram Jill Kassis Activities 6 June - Sunday Travel 7 June - Monday Travel 8 June - Tuesday Finally arrive Maputo Travel Meet with staff for overview -financial oversight -program planning -followup from program conference -m&e oversight 9 June - Wednesday Arrive Maputo evening Visit Filimone Meet with Vuyo Mahlati, Kellogg Foundation Meet with research assistant Dinner with Lorraine Johnson, ATA Africa Rep 10 June - Thursday Chamber of Commerce presentation Financial oversight with staff Mabanda visit Visit potential new office site 11 June - Friday Travel to Nampula Travel to Nampula Artisan visits and grantee visits 12 June - Saturday Travel to Maputo then Durban Travel to Maputo then Durban Producer focus group, 4 artisans Visit Saturday market in Maputo and higher end shops 13 June - Sunday Meet with Marisa Fick Jordaan 14 June - Monday Travel to Botswana for program development Shanty town visit Meet with research assistants 15 June - Tuesday Travel to Joburg, afternoon In Botswana with Lorraine Johnson for program development Coordination with Marketing Manager Frances Potter 16 June - Wednesday Travel to Joburg, Funder visits, general SA planning PAED mid-term evaluation appendices © 2005 Aid to Artisans 44 morning 17 June - Thursday Funder meetings in Joburg, including Ford, AID, all others 18 June - Friday Travel to Cape Town Travel to Cape Town Visit CCDI trade day; meetings with CCDI 19 June – Saturday Nadia, DTI Robbin Island, shop visit; 20 June - Sunday Travel to Dar es Salaam Travel home Meet Adam Tabuyanaa, Local Coordinator Flotea Massawe, Marvelous Batik Visit Slipway. Date: 21 June - Monday Travel home Meetings with Mikono, Marvelous, ADAT in DAR Tom McAndrews, USAID Date: 22 June - Tuesday Travel to Zanzibar Meetings with Antje of Moto, and Eaglewood Review research plan with Adam Date: 23 June - Wednesday Travel home Moto, ScanZa Review research plan with Adam Date: 24 June - Thursday Travel home PAED mid-term evaluation appendices © 2005 Aid to Artisans 45 Appendix 6. ATA’s new entrepreneur-led concept for Africa This concept was developed as a result of lessons learned during the PAED program, and ATA is currently seeking funding to implement it. Tailored Support for Entrepreneur-Led Craft Enterprises in Africa [TREC] Ensuring African Entrepreneurs Share in the Global Market BACKGROUND & CONCEPT As part of ATA’s overall efforts to focus on Africa and therefore expand our depth and breadth on the continent, ATA has been thoughtfully and strategically reviewing lessons learned in other projects and at the same time conducting assessments to understand better the opportunities and challenges of the craft sector and how ATA can be most useful. This has led us to a new pilot approach – Tailored Support for Entrepreneurial-Led Craft Enterprises in Africa [TREC]: Ensuring African Entrepreneurs Share in the Global Market - that provides focused, tailored support that strengthens strategic alliances between the maker and the market. TREC is not country specific, rather it maximizes ATA’s impact by focusing on the entrepreneurs along the craft value chain, be they, for example, producers/artisans, exporters, or suppliers, and assisting them to gain maximum returns on their strengths while transforming their weaknesses into capacities. ATA will work with entrepreneur-led enterprises on the continent addressing each one’s specific needs while ensuring the development of market diversification, both internally and externally, to attain long-term enterprise sustainability. With this entrepreneur-driven approach, ATA will work at the micro-enterprise level and the SME level, as our work continually reinforces the well￾known adage that attitude [in this case, of the business owner] often defines the difference between achieving success, the status quo or failure, not size. Currently, ATA has two initiatives, the Africa Market Readiness Program [AMRP] and the Market Link Program, that are based in South Africa yet directed towards craft entrepreneurs across the continent. The AMRP exposes participants to a lively and viable market through viewing wholesalers’ booths at industry trade shows and visiting high-end retail shops and galleries in and around Johannesburg. The training program strengthens participants’ capacity to negotiate market links and manage their business through participation in an array of business and market-related seminars that includes product ATA has 29 years of experience in business and market readiness training, trend based product development and design, an extensive market link, buyer network and trade show presence – enabling quick mobilization of resources to address the immediate and long-term goals of the craft sector. PAED mid-term evaluation appendices © 2005 Aid to Artisans 46 review by experienced designers and industry professionals. The Market Link program promotes artisans’ products through trade show participation at SARCDA and beyond. Both of these programs bring together artisans on the continent to share ideas and absorb valuable market and export related information that strengthens their capacity to enter not only the South African market but also the global marketplace. They learn strategic approaches to product development, branding, and developing promotional materials, and key business practices, such as costing and pricing, which enable enterprises to reach and manage success. ATA is also working to strengthen the interconnectedness between these two continent￾wide initiatives based in South Africa and this new entrepreneur-led approach (TREC) with the view of creating an overall strategy to overcome product stagnation, increase the momentum of market-driven innovation, strengthen local design capacity, improve quality, production capacity, customer service and management capacity, thereby increasing the competitive edge of African crafters in the world marketplace. We are committed to ensuring that our limited resources are used strategically in order to attain maximum success for those enterprises with whom we work. This focused support will create role models in the sector for which other entrepreneurs and producers can aspire. It will have multiplier effects, as those who are supported gain a greater market share, thereby creating more jobs as demand increases. Also key to this entrepreneur-led approach is the services that buyers, both within and outside of Africa, provide artisans and exporters. ATA will therefore better utilize our trade network members, a network of committed and like-minded importers who assist artisan enterprises by supporting ATA's training programs and expanding product and merchandising opportunities for artisans worldwide, in supporting the growth of African craft businesses. The success of this intricate relationship is fundamental to business sustainability. We will provide incentives for buyers, as they contribute to assisting the enterprises with improved product innovation, quality, price competitiveness, on-time delivery and customer service. The success and sustainability of a craft enterprise is dependent on its ability to continually: ƒ Recognize the need for new product development and actively develop marketable product, whether in-house or through outsourcing, taking into consideration the ever￾changing needs and demands of the market; ƒ Ensure sufficient production capacity and product quality as demand fluctuates; ƒ Calculate and provide competitive prices based on ongoing, sound market research; ƒ Create and maintain NEW market links [independent of ATA, as opposed to just maintaining current market links that existed prior to ATA support or perhaps even created and nurtured through previous ATA support]; ƒ Adjust its market strategy, sales goals and target market as needed to ensure continued success through analyzing its business goals against actual results and keep up on current business and market trends; PAED mid-term evaluation appendices © 2005 Aid to Artisans 47 Why an entrepreneurial-led approach? The strategic difference between enterprise-led or entrepreneurial-led lies in the word entrepreneur. ATA recognizes that no enterprise maintains success over time if it is not led by an entrepreneur – someone who has the drive and motivation to work for a vision. It recognizes that crafters are many but entrepreneurs are few. It recognizes that the emerging entrepreneur in Africa has barriers that keep her behind her competitors. It recognizes that concentrated effort with the entrepreneur at the SME level – be it a producer or craft exporter - will maximize the impact its limited resources can have and result in stronger, larger and more sustained craft businesses. It also recognizes that entrepreneurs exist at the micro-level, and that with focused, tailored attention can reach success at a more rapid pace. This overall success will in turn provide the necessary role models within the sector that often can be one of the most important motivators for an emerging entrepreneur. ƒ Make strategic business decisions and investments that will ensure the long-term health of their business; and ƒ Remain open to change. ATA’s TREC program aims to support and strengthen enterprises’ individual needs as they work to achieve the internal competence necessary to meet this level of success and sustainability. In the spirit of ATA’s overall mission, ATA plans to slowly phase-out support as the enterprise demonstrates sufficient capacity. TREC DESIGN The TREC program is designed to meet individual needs of enterprises spread throughout the continent, however ATA recognizes that this ambitious goal requires a realistic approach that is cost-effective and logistically sound. The long-term vision will therefore be to create three regional TREC hubs each with its own Mentoring Team. In order to ensure the highest quality program, TREC will provide support for up to 15 entrepreneurial-led craft enterprises in the West African Region over a period of three years under what ATA considers a pilot phase. The enterprises will receive support from an ATA Mentoring Team [MT] comprised of various industry specialists who will provide needs-based assistance to the entrepreneurs. Due to an individual mentoring track structure, each entrepreneurial-led enterprise will commence and graduate from the program in accordance with initial business assessments and annual evaluations by the MT. The pilot phase will enable ATA to gather lessons learned, with input from both the participants and the MT, through the implementation phase of the concept in order to streamline the program and expand it to the other two regional hubs, that being East Africa and Southern Africa. The Mentoring Team [MT] will include at least one of the following experts, yet direct assistance from all members of the team to one particular enterprise may not be necessary. PAED mid-term evaluation appendices © 2005 Aid to Artisans 48 Business Specialist: For those enterprises with a written business plan, reviews and advises on its strengths and weaknesses, and assists the entrepreneur think through possible revisions that could improve the probability of long-term success. For those without a written plan, the Business Specialist will assist the entrepreneur with the development of a comprehensive business plan that is seen more as a working document to guide them toward meeting their business goals. Provides on-site business management training that supports business plan development or revisions; this could include how to do market research, develop market and production strategies, financial management, analysis, and projecting, costing and pricing, elements of a business plan and the steps involved in its development. Will work in conjunction with the Marketing Specialist to ensure the development of a marketing and production strategy with long-term sales goals. Provides support on an as-needed basis. Marketing Specialist: Responsible for ensuring and providing assistance and activities that are focused on the end goal of creating sustainable market linkages. Works closely with Product Designer and Business Specialist. Provides support to each enterprise throughout the duration of the TREC program. Product Designer/Developer – Provides product development and design assistance to craft entrepreneurs, creating new products and product lines, including the development of prototypes, pricing and costing, coding and quality control of the same. During this process, the Designer should work closely with one employee of the enterprise, in a mentoring relationship, who has this as his/her primary job responsibility. Provides support on an as-needed basis. Production/Technical Specialist: Rotated in to provide media specific technical assistance. May overlap with product development person. Considers environmental impact of craft production and sustainability of raw materials. More than likely more than one technical specialist will have to be identified and offered to the entrepreneurs considering the various raw materials needs. Provides support on an as-needed basis. Branding Specialist: Provides assistance in the development of an enterprise and/or product range branding strategy, that includes the design and development of strategic promotional materials and trademarks developed taking into consideration key target markets, be they local, regional and/or international. Works closely with the Marketing Specialist and Designer and will be linked to all 10 enterprises. Provides support on an as-needed basis. ATA Program Leader: Overall project management, including monitoring and evaluation. Provides support to each enterprise throughout the duration of the TREC program. Primary Mentor: A Primary Mentor will be identified for each entrepreneur that will stay with him/her throughout the course of his/her participation in the ATA TREC program. Unlike the specialists on the team, the Mentor will remain with the entrepreneur throughout the duration, while the others go in and out on an as-needed basis, and some may just provide one-off assistance. The mentor will be chosen for a particular entrepreneur based on the entrepreneur’s primary business need, taking into consideration personality compatibility. The Mentor will be not be an additional member of the MT, rather be chosen from one of the above specialties, thus playing two distinct roles, that of providing specialist assistance on PAED mid-term evaluation appendices © 2005 Aid to Artisans 49 one hand, and a mentoring role on the other. In his/her mentoring role, the Mentor will meet face￾to-face with the enterprise at least three times per year. OVERALL GOAL of the Pilot Phase The TREC program aims to support and strengthen the individual needs of entrepreneurial￾led craft enterprises’ in West Africa through an intensified mentoring approach as they work to achieve the internal capacity necessary to strengthen and build craft businesses that are capable of successfully responding to the changing needs of the market based on sound business decisions. OBJECTIVES ƒ Increase craft enterprises’ overall competitive edge and their capacity to manage resulting success through the provision of tailored business and marketing support and training over a period up to three years. ƒ Increase sales for craft enterprises by 50% through the development of effective marketing and product development strategies that target diverse markets and buyers by the end of their involvement in the TREC pilot phase program. This includes enterprises’ active participation in the market-link program. ƒ Overcome product stagnation by increasing the momentum of market-driven innovation and strengthening of internal design capacity for up to 15 craft enterprises, including the streamlining of production systems that aid in on-time delivery of product orders. ƒ Improve business management and marketing skills of up to 15 craft entrepreneurs through the strengthening or development of enterprise business plans that serve as working documents for the enterprises and incorporate a system of continual evaluation and feedback that influences sound business decisions. PROGRAM PHASES/ACTIVITIES Program Phases: ƒ Assessment & Recruitment (6 months) ƒ Identification of Mentoring Team and Familiarization (ongoing during first 6 months) ƒ Implementation & Ongoing Evaluation (6-36 months) Program Activities: Each entrepreneur will be receiving focused assistance based on their needs and as such, there is no list of set activities. However, there are some general program activities that can be identified per phase: Assessment and Recruitment for pilot phase: ƒ Identify potential business by: o Craft enterprise assessments recently conducted in region o Existing ATA Trade Network members and relevant organizations o Networking during ongoing travel in West Africa PAED mid-term evaluation appendices © 2005 Aid to Artisans 50 o Diagnostic to assess strengths and weaknesses of each selected business and determine cost share capacity [per enterprise] to be conducted by at least 2 members of the Mentoring Team [one of which should be the ATA Program Leader] o Application process and development of MOU that includes agreed upon cost share for services rendered that will be signed by each business selected o Businesses selected and participation confirmed through signing of MOU. o Businesses involved meet together for orientation and preliminary Year 1 timetables developed, MT members should be present at this orientation and each entrepreneur have scheduled time to meet with the MT members, meet their proposed mentor, and work through the Year 1 schedule of support. ƒ Identification of MT and Familiarization : o Identify the Business and Marketing Specialist to work together with the ATA Program Leader during the Diagnostic phase o Based on the needs during the Diagnostic phase, identify other members of the MT o Bring relevant MT members together for an orientation and develop first year schedule of MT travel and assistance based on diagnostic ƒ Implementation: o A minimum of three face-to-face interactions between one or members of the MT and each entrepreneur will occur per year, either at the enterprise’s workplace and/or in the marketplace. This could include a product development specialist, an individual training on production or technical assistant, etc. o Each enterprise receives an initial meeting with the Marketing and Business Specialists, who will fine tune the initial workplan as developed during the orientation session, and begin to discuss the parameters of a business plan to overcome obstacles to the business’s success. An initial marketing plan will be developed whereby product line developed will be juried and displayed at ATA booths in major trade shows, in ATA marketing publications etc. Sales goals will be attached to each marketing event. o Product Development and Design input: The enterprise will receive a minimum of one design trip per year. This will be linked to sales target and each enterprise will pay an individually pre-determined minimum fee and percentage of actual sales achieved as a fee for service. This will be determined on an individual enterprise basis depending on the enterprise’s context. o Business Specialist Input: A minimum of two visits to each entrepreneur per year, with the rest of information sharing and mentoring done via the e-mail. Business and Marketing Plan developed or reviewed [if already in existence] with each enterprise, with input from the team, and reviewed every 6-12 months. This may be a fee-based service and fees will be negotiated on a per-business basis in relation to total sales and number of years in business. PAED mid-term evaluation appendices © 2005 Aid to Artisans 51 o Branding Specialist Input: A branding session will be conducted with each entrepreneur for all the groups involved in TREC, with review and support from ATA market staff. o At least one visit per year will be at a major trade show or in the market. ƒ Review and Lessons Learned: o Quarterly check-in/monitoring by ATA Team Leader with both entrepreneurs and MT members [not all field based] o Mid-Intervention Evaluation after 18 months. o End of project evaluation o Lessons Learned Conference midway through the project and at the end ƒ Modify and Roll Out o Incorporate Lessons Learned into new streamlined program design. o Identify other potential, entrepreneurial-based SMEs in West Africa, as well as East and Southern Africa. o Develop proposal for implementation of re-designed process with new enterprises in West Africa, and in the other two TREC hubs, in East and southern Africa, either simultaneously or in a phase-in approach. Time Line: 3 years, but some businesses will graduate prior to the end.