Evaluation of the Impact of PRIDE/VITA (The Guinea Rural Enterprise Development Project)
This report evaluates impact of a three-year microcredit program through which non-collateralized loans are made to small producers who organize themselves into groups of five to guarantee each other's loans.
The report also focuses on the effects of a two-week entrepreneur development workshop where 20-30 individuals had business management classes and simulated meetings with bankers. Changes in attitude, work habits and performance were assessed through interviews. Findings include:
- A clear pattern of difference emerged between those with multiple loans and those with one loan or only training;
- Multiple loan recipients had increased enterprise revenues, both at individual and family level. This was found to correlate at least in part to the effect of the loans themselves;
- Multiple loan recipients had begun to enjoy the fruits of greater prosperity including purchasing better food;
- There were some complaints among participants who did not want responsibility for someone else's repayment;
- Evaluation of workshop impact showed it offered appropriate lessons and was easily absorbed by trainees, given the high degree of motivation amongst them. Suggests this may be due to self-selecting of an elite group of French-speaking entrepreneurs.
The report concludes in questioning the long-term sustainability of the programme, stating the entire set-up is top-down. Long-term viability depends on leadership that continues with values and beliefs about what will work for clients such as those of the current leaders.
