Economic Impact
DEVELOPMENT IMPACT STUDY
PHASE I | PHASE II

SEAF's Phase I Development Impact Study found that every dollar SEAF invested in 10 SMEs generated on average ten dollars in the local economy. The Study measures investment returns in more than financial terms, focusing on the actual economic and social impacts. Using the Stakeholder Approach, SEAF's analysis of the issue was two-fold: qualitative case studies of SEAF investments combined with a quantitative analysis of firm level data. Phase II of the Study builds upon the experience gained during the first phase. This second phase includes more case studies and an Ongoing Data Collection Project.

Phase I

The first phase of the Study was completed in March 2004. It consisted of ten case studies examining 10 of SEAF's investments. These SMEs were taken from a mix of sectors: agribusiness, manufacturing, distribution, etc. Half were rural and half urban and were found in Eastern Europe (Bulgaria, Romania, and Poland) and Latin America (Peru and Bolivia). The study concluded that, on average, every dollar SEAF invested generated about ten dollars in the local economy. Half of this return goes to private investors and local partners, and the remainder is spread across the other local stakeholders, with employees, government, suppliers and local communities benefiting the most. The study also found that unskilled workers made up the majority of employment at these companies, and that there was an increase in real wages due to training. This demonstrates that SMEs create jobs beneficial to the poor. It also found that a low internal rate of return (IRR) did not necessarily mean a low economic rate of return (ERR). The full reports can be viewed by clicking on the links below:

 Volume I: Main Report
Volume II: Case Studies

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Phase II

The second phase of the Study is currently underway. It has greatly benefited from experience gained during the first phase. Data collection and stakeholder interviews have been refined in order to better capture some of the impacts that are more difficult to assess. This phase will include more case studies from countries other than those represented in the first phase as well as an analysis of the data collected through the Ongoing Data Collection Project. Special thanks to SECO for their continued funding.

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Economic Impact

DEVELOPMENT IMPACT STUDY
PHASE I | PHASE II

SEAF's Phase I Development Impact Study found that every dollar SEAF invested in 10 SMEs generated on average ten dollars in the local economy. The Study measures investment returns in more than financial terms, focusing on the actual economic and social impacts. Using the Stakeholder Approach, SEAF's analysis of the issue was two-fold: qualitative case studies of SEAF investments combined with a quantitative analysis of firm level data. Phase I of the Study builds upon the experience gained during the first phase. This second phase includes more case studies and an Ongoing Data Collection Project.

Phase I

The first phase of the Study was completed in March 2004. It consisted of ten case studies examining 10 of SEAF's investments. These SMEs were taken from a mix of sectors: agribusiness, manufacturing, distribution, etc. Half were rural and half urban and were found in Eastern Europe (Bulgaria, Romania, and Poland) and Latin America (Peru and Bolivia). The study concluded that, on average, every dollar SEAF invested generated about ten dollars in the local economy. Half of this return goes to private investors and local partners, and the remainder is spread across the other local stakeholders, with employees, government, suppliers and local communities benefiting the most. The study also found that unskilled workers made up the majority of employment at these companies, and that there was an increase in real wages due to training. This demonstrates that SMEs create jobs beneficial to the poor. It also found that a low internal rate of return (IRR) did not necessarily mean a low economic rate of return (ERR). The full reports can be viewed by clicking on the links below:

Phase II

The second phase of the Study is currently underway. It has greatly benefited from experience gained during the first phase. Data collection and stakeholder interviews have been refined in order to better capture some of the impacts that are more difficult to assess. This phase will include more case studies from countries other than those represented in the first phase as well as an analysis of the data collected through the Ongoing Data Collection Project. Special thanks to SECO for their continued funding.