Evaluation of Enclude’s Variable Payment Obligation (VPO) Programme
2017-2018; Argidius Foundation; Nicaragua
Enclude is an advisory firm dedicated to building more sustainable small growth businesses (SGBs) and institutions by offering the integrated capacity and capital solutions that power economic growth, enterprise profitability and social transformation.
From 2012 to 2016, the Argidius Foundation supported Enclude to work with Banco de America Central (BAC) Nicaragua to expand access to investment loan financing for SGBs. Following the success of this project Argidius entered into a new partnership with Enclude to establish the Variable Payment Obligation Programme (VPOP) in 2015. This is an innovative market driven initiative that aims to address SGBs’ lack of access to formal financing. The programme provides cashflow based financing, alongside Enterprise Growth Services (EGS) to SGBs with ambition to grow to help them with access to right-fit finance, and to increase their skills and knowledge.
Itad was appointed by Argidius Foundation to conduct an external evaluation to assess the results of the Enclude VPOP pilot phase with an emphasis on the contribution of the VPOP pilot to successful outcomes (revenue growth/job creation/investment raised of businesses); short and medium-term results; and factors that have positively and negatively influenced results.
The purpose of the evaluation was to provide an objective assessment of the services provided to SGBs through the program, and based on the findings provide a set of recommendations and lessons that will enhance VPOP, and contribute to the sector-wide evidence base on what works in business development services.
The evaluation was well received by Enclude and Argidius Foundation, and the results of the evaluation have been used to inform the scale up of the pilot in Nicaragua and other Latin American countries. Itad in partnership with Argidius Foundation, is now working towards producing the report for external publication and learning in the SGB sector.
Image © Boy Carrying Onions, Nicaragua. Photo Credit: Adam Cohn, Flickr