Enterprise challenge funds are widely used in the development landscape,
in the past 15 years alone a number of donors have spent approximately
£850m on this aid modality. A large proportion of this spend has been
disbursed through challenge funds in social sectors (such as the massive
£355 million Girls Education Challenge) - but our focus here is the type
of funds which have private sector grantees that are intended to create
jobs and incomes.
This topic guide seeks to explain:
the evolution of challenge funds;
the conceptual rationale for their use;
their use in practice;
findings on the effectiveness of challenge funds; and
how the lessons learned should inform future challenge funds
This report concludes that the monitoring and evaluation material
generated by challenge funds has been extensive - but not entirely
Brain, A.; Gulrajani, N.; Mitchell, J. Topic Guide: Meeting the challenge: How can enterprise challenge funds be made to work better. EPS PEAKS, UK (2014) 34 pp.