Effectiveness measurement framework for a grant programme – The case of cooperative grant scheme (CIS)

ABSTRACT

The decrease in public trust and lack of coordination among the traditional financial institutions drives the establishment of a grant incentive scheme for cooperative enterprise in South Africa. The grant incentive scheme provides alternative support for sustainable development of targeted cooperative enterprises with black shareholders owning a majority share. However, there is a lack of evaluation method and empirical studies determining the effectiveness of the scheme based on its mandates and objectives. Therefore, the paper, through a case study approach, investigates the effectiveness of the cooperative incentive scheme (CIS) between 2012 and 2017. A descriptive analysis approach was adopted in the study to describe specific behaviours as they appeared in the environment of the scheme. This is to understand their impacts on administration, regulations, and implementation, as well as social and economic outcomes better while prioritising its mandate in partnership with its beneficiaries to offer good public services and investment.

KEYWORDS:

• Effectiveness
• measurement
• cooperative
• enterprise
• grant
• scheme
• South Africa

JEL CLASSIFICATION CODES:

• G₃
• O₂

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 BNDES is a line of credit operated by the Brazilian Development Bank (BNDES) with a primary target and supports micro, small and medium-sized companies on the evolution of registered employment in the beneficiary companies.

2 SEFA is a South African financing agency that provides financial products and services to qualifying SMEs and co-operatives.

3 Land Bank is a specialist agricultural bank guided by a government mandate to provide financial services to commercial farming and agri-business.

4 This programme, according to the OECD (2013:23), focuses on the

firm’s advisors (similar to that of BBSDP) working with the entrepreneur to identify the types and providers of support, which can best support growth. Its mission was defined as the creation of growth in new and small and medium-sized enterprises (SMEs).

5 The Growth Accelerator Programme is intended to address the issues accelerating growth among SMEs with significant growth potential.

6 The programme targets leading incubators and offers them performance-based funding. To obtain performance-based funding from SUMMIT, the incubator must also have co-financing (at least 50%).

7 The programme is designed to promote the development of dynamic start-up enterprises with high growth potential (dynamic entrepreneurship).

8 The Inovar project is an initiative planned and funded by the Brazilian government’s Agency for Innovation and the Multilateral Investment Fund together with the Inter-American Development Bank, through an international cooperation agreement with the aim of fostering innovation and innovative companies and projects.