SNAPSHOT OF TEF IMPACT FROM OUR #TEF2021 ENTREPRENEURS
Our approach at the Tony Elumelu Foundation prioritises monitoring, tracking, and evaluation to ensure that the funds that we disburse to our TEF Entrepreneurs are being used effectively and efficiently. Monitoring helps to track the progress of our entrepreneurs across all 54 African countries and assess whether they are on track to meet their business goals and objectives after receiving business management training, mentorship, coaching and seed capital from the Foundation.
Monitoring also provides an opportunity to identify and address any problems or challenges that may arise during the implementation of our entrepreneurs’ business plans. Evaluation, on the other hand, provides an opportunity to assess the impact of our work and determine whether we are achieving our intended outcomes at TEF. By evaluating the effectiveness of our TEF Entrepreneurship Programme, we can determine whether to tweak or modify the way that we support young African entrepreneurs.
Additionally, Monitoring and Evaluation (M&E) is important in building trust and credibility with all stakeholders including the development agencies that partner with us. By demonstrating that our funding is being used responsibly and effectively, our TEF Entrepreneurs across Africa build a positive reputation for themselves and increase their opportunities to attract additional funding from TEF and our partners. Monitoring and Evaluation help to ensure accountability, transparency, and good governance.
Our 2021 baseline study adopted a descriptive cross-sectional survey mixed methodology consisting of both quantitative and qualitative methods. Quantitative and Qualitative data were collected using online survey-coded questionnaires from 1860 survey respondents selected from the 2021 selected and funded entrepreneurs on the TEF Entrepreneurship Programme. This sample distribution was allocated based on the total percentage selected for the programmes per region. Indicators were estimated using a matrix of responses collected through the survey. The study population was 4949 of 2021 beneficiaries cutting across several business sectors and subregions of Africa. Regarding the conduct of the survey, an online survey form was developed and sent to all the beneficiaries.
Summary of Findings – Inclusivity
- The survey captured more female responses (62% female) which is indicative of a more gender inclusive TEF approach. This follows TEF’s prioritisation of gender inclusivity as a factor in its programmes.
- 88% of respondents are within the youth age range of 23-43. This is consistent with the reports on the increasing youth population engaging in entrepreneurship activities in Africa.
- The majority of respondents (89%) are well educated with 45% of the respondent attaining a postgraduate degree level of education and 44% attaining a first-degree tertiary level of education. This shows that more educated young Africans are choosing to start their businesses and become “job creators” instead of “job seekers”.
- Most businesses are within urban settlements as findings show that 51% of respondents attested to having their business in the urban areas and 16% are in rural settlement that is quite far from any city.
Summary of Findings – Business growth
- 65% of selected entrepreneurs choose to become entrepreneurs to make positive impacts within their community and country. This would speak to increased interest in driving development within their communities and contributing to economic development.
- 53% of the selected TEF Entrepreneurs for 2021 have their business at the start-up stage. This indicates that most of these businesses are still at the idea stage and are yet to have any structures or even be able to make any revenue or add immediate jobs, while 47% of the selected entrepreneurs indicated that their businesses are already in the growth and expansion stage (35% and 12%). 12% in the expansion stage can begin immediate scale-up in terms of creating new outlets, adding significant new decent jobs, and increasing significant revenue.
- 86% of these businesses already have a digital presence in their businesses. Hence, it is indicative that they can easily explore expansive marketing and extend the reach of their business further beyond their current location.
- 63% opined that they have started using the learnings in key areas of business management (deploying HSE standards 9%, Hr management system 22%, finance mechanism 16%, and big management procedures 16%). (97%) opined to needing further support in scaling up their management capacity during the monitoring process.
Summary of Findings – Earning Power
- 63% of workers earn 50 –150 dollars (24%:50-75$, 20%:75-100$, 19%:100-150$) and 17% earns below 50$. This represents earnings for permanent employees. However, responses on work hours indicated that 77% of workers work above 20 hours to 60 hours a week.
- Findings indicated that 80% of casual workers only work less than 10 hours – 20 hours in a week and 82% earn less than 50$-100$ in a typical month.
- 48% of employees are renumerated on a fixed salary basis, 21% are renumerated on a piece rate depending on the commission agreed on, and 21% are renumerated with a mix of both. Consequently, about 69% of employees have stable remuneration from the jobs created by selected entrepreneurs whose businesses have paid employees at the point of selection.
- 43% of recruitments are done with persons in their networks (family and friends) which is an indication that hiring the best hands would not be the priority but to get available persons.
- 43% of respondents have their business as their major source of income, which would also mean they have other sources, but major contribution comes from the funded business, 23% indicated that it is not only their main source but their only source of income, 16% said it’s not their main source of income, and 18% said it not a source of income for them now. However, 70% of this income is within the range of 200 to 1000 dollars per month, and 7% earn as much as 1000 to 2000 dollars in a month.
- 67% of respondents are currently receiving some form of revenue from their business while 33% do not yet have any form of revenue from their business.
- 42% of the revenue-generating population adds a typical annual revenue that is less than $1000 per annum and 21% generate between $1000 to $2000 per annum with 5% above 2000 to 3000 USD per annum.
- 81% of beneficiaries surveyed attested to not receiving or accessing any other form of funding or grant while 19% opined to have received other funding. However, the majority of this funding is from family and personal equity and very little from government funding, Bank loans retained profit.
- 61% of surveyed beneficiaries attested to having records of their business finances in place, while 39% do not yet have records of their business finance. However, 94% of the respondents indicated that they would be needing more support from the programme inadequately setting up a business record system in their business.
The Tony Elumelu Foundation’s Monitoring and Evaluation department is well-resourced to carry out its work in a credible and transformative manner:
- Human resources/ Manpower
The Foundation’s M&E department has a team of skilled professionals with a strong background in data analysis, research, and evaluation. This team is able to carry out data analysis, collect and analyse data from various sources, and produce high-quality reports.
- Data management systems
The M&E department has a unified data access point called the TEF Data Vault. It is an efficient data management system that can store, process, and analyse large amounts of data. This system can securely store sensitive information, it is user-friendly and provides real-time insights and reports. With the presence of this data vault, there is no room for multiple data access points.
The Data Vault is also relevant to other departments in the Foundation, as it houses uniform data that can be used when reporting and assessing the impact made on the continent.
The M&E department also gets support from other departments in the Foundation to effectively carry out its activities.
- Access to field data
The M&E department has access to relevant data from beneficiaries and other sources to carry out its work effectively. This includes data on grant outcomes, program results, and other information that is relevant to the foundation’s activities.
- Technical expertise
The M&E department also has access to technical experts who can provide support with data analysis, data management, and report writing. This includes consultants, data scientists, or other experts in relevant fields.
M&E is an integral part of the work that we do at the Tony Elumelu Foundation to record our impact in creating jobs, eradicating poverty, and improving women’s economic empowerment on the African continent.