IMPES

Principle Four

Understand and align with the goals of key stakeholders

IMPES

 

 

4. Principle Four

Understand and align with the goals of key stakeholders

ESOs make significant contributions towards a country’s economic development and growth. In doing so, they cannot work in a silo. Take into account the strategies of key stakeholders such as local and international governments, business networks, intermediaries, and funders when defining your impact measurement strategy and targets. Consider how you can align and collaborate with others in the ecosystem to strive towards a bigger picture.

For example, global goals such as the Sustainable Development Goals (SDGs) include regional and country-specific targets for development and economic growth. Aligning your work with these goals and towards specific targets will provide clarity about the impact you intend to create as well as your contribution towards shared development goals.

ESOs make significant contributions towards a country’s economic development and growth. In doing so, they cannot work in a silo. Take into account the strategies of key stakeholders such as local and international governments, business networks, intermediaries, and funders when defining your impact measurement strategy and targets. Consider how you can align and collaborate with others in the ecosystem to strive towards a bigger picture.

For example, global goals such as the Sustainable Development Goals (SDGs) include regional and country-specific targets for development and economic growth. Aligning your work with these goals and towards specific targets will provide clarity about the impact you intend to create as well as your contribution towards shared development goals.

Home 5 The IMPES Principles 5 Principle Four: Understand and Align With The Goals of Key Staekholders
4.1 Understand (and where possible, align with) national, regional, and global goals for economic development

Engage with local and, where possible, international governments and other key development agencies to understand priority areas and the targets that are aligned with global development goals while remaining focused on your ESO’s vision and mission. Aligning your intended outcomes, targets, and data collection and measurement against country- and regionally-specific goals can help build strategic partnerships as well as make your contribution towards shared goals as clear as possible. 

It is also important to acknowledge that some countries have clearer targets or more data than others. 

4.2 Understand the role your ESO plays in a wider ecosystem and how you can measure your contribution to its continued growth and development

An ‘ecosystem’ is made up of many different players, structures, and policies, both government and non-government. Entrepreneurs need accessible business support in many different forms, including in training, mentoring, networking, legal structures, accessing information, finance, and accessing capital, office space, and more. 

As an ESO, your voice represents entrepreneurs and the support structures they need. Consider what the current business ecosystem looks like for entrepreneurs in your country, what an enabling and thriving business environment could look like in the future, and how you can measure your contribution towards it.

4.3 Be specific about goals and targets

Be clear and specific about the impact your ESO intends to create and how you will measure it. If you are aligning this work with a specific economic goal or strategy, make it clear exactly what this is and how you will measure your progress and contribution towards it. 

For example, some countries have specific government policies around supporting small-medium enterprises (SMEs) and improving the business environment for SMEs to operate, such as through changed policies or clearer regulations related to business registration, legal practices, etc. Your ESO may provide entrepreneurs with access to information and tailored support to navigate or utilise these policies, so consider how you can measure the outcomes of this work and the contribution towards the local governments’ priority goals. 

If aligning your ESO’s intended impact against the SDGs, for example, be specific about which goals, the targets under these goals, and how you will measure progress towards them. 

4.4 Funding partners and ESOs need to be on the same page

When starting a new project, sit down together and discuss what success looks like for the program to ensure your outcomes and success indicators for the project align. Do you agree on what success looks like for the project or program? Are you on the same page about what data will be collected and measured? Are your longer-term goals and strategies aligned? Consider who has the most experience and expertise in supporting entrepreneurs, and make sure their voice is heard. 

Upholding effective communication about what success looks like with key partners and how you define, measure, and report it is crucial to building strong relationships and avoiding problems that may arise from misunderstandings in the future. 

Be clear on your ESO’s vision, mission, values, and strategic goals. When working with different partners, alignment towards a shared vision and goal is key to strong and impactful partnerships, and this needs to be balanced with ensuring programs and their success indicators do not pull you away from your mission. 

The principles in practice

An example of an ESO identifying a global goal that is aligned with their organisation’s vision, mission, and intended impact:

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An example of an ESO identifying a global goal that is aligned with their organisation’s vision, mission, and intended impact: 

Sustainable Development Goal #8: Decent Work & Economic Growth 

Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalisation and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

Example outcomes and indicators for ESO:

Outcome: Decent job creation

Indicators:

  • Each incubator program graduate creates an average of five new jobs over one year post-graduation
  • 50% of new jobs created are held by women
  • 10% of new jobs created are held by people with a disability or vulnerable people (e.g. displaced or ethnic minority groups)
  • Definition: ‘Decent’ jobs are those that pay the accepted minimum wage or more, have safe and adequate working conditions (e.g. safety standards in place), and are full-time (or at least 12-month contract) and permanent (not temporary contractual roles such as seasonal farming). 

Outcome: Increase in business formalisation 

Indicators:

  • 10% of graduates formally register their business with the local government
  • 70% of graduates report that they are keeping accurate financial records

THE PRINCIPLES

A set of living, open source Guiding Principles for ESO Impact Measurement, led by a Community of Practice, and developed with input from key stakeholders.

Explore by Principle, or start with

1: Understand what success looks like for entrepreneurs

2: Measure the Health of your ESO

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3: Measure immediate, intermediate and long-term outcomes

4. Understand and align with the goals of key stakeholders

Illustration of Groups of Entrepreneur, Partner, ESO, and Funder Stakeholders

5. Invest in Monitoring, Evaluation, & Learning (MEL)

6: Practise data collection methods that are accessible for diverse entrepreneurs

7: Validate what you measure

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