Understanding success in micro‐enterprise development: Dimensions and misconceptions

Abstract

This article examines micro-enterprise development (MED) programmes of nongovernment organisations (NGOs) in two developing countries, Bangladesh and Indonesia, to explore understandings of success from the perspectives NGO managers and beneficiaries. Interviews were conducted with managers from 20 MED NGOs, and individuals and groups of beneficiaries from four of the NGOs. A review of the NGOs' publicly available documents was also undertaken and compared with interview data. The findings reveal NGOs' understandings of success at the organisational-level-emphasised organisational development. However, NGOs' interpretations of success at the programme level focused primarily on short-term outputs rather than long-term outcomes and impacts, with limited follow-up by NGOs. Implications include potential misconceptions regarding understandings of success from an internal (NGO) versus external perspective, and the need for longterm monitoring to understand how sustainable NGOs' programme outcomes actually are. K E Y W O R D S micro-enterprise development, NGOs, success, sustainable poverty alleviation 1 | INTRODUCTION Poverty alleviation remains an ongoing challenge (Agyemang et al., 2017; World Bank, 2015) with global implications. Despite the continued efforts of non-government organisations (NGOs) and others to address poverty, the World Bank's (2019) most recent estimates note 10% of the world's population (736 million people)live in extreme poverty (on less than $1.90 a day), and for many nations, poverty reduction has slowed or even reversed. NGOs are perceived as essential actors in delivering aid programmes to alle-