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 helpful.
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.