Topic Guide: Meeting the challenge: How can enterprise challenge funds be made to work better

Abstract

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.

Citation

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.

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