Theory of Change

People making baskets

Creating a sustainable path out of extreme poverty

A theory of change is an expression of the sequence of cause-and-effect actions or occurrences by which organizational and financial resources are assumed to be converted into the desired social results. 

Village Enterprise’s Theory of Change

Theory of Change flowchart


People living in extreme poverty lack business knowledge, skills, social capital, financial literacy, and access to capital, financial institutions, and markets. As a result, they cannot start sustainable, income-generating activities and are caught in the vicious cycle of poverty.


Village Enterprise can provide a poverty graduation program that equips people living in extreme poverty with the resources to start businesses and saving groups by providing training, mentoring, a conditional cash transfer and access to financial institutions and markets.


If this package of training, mentoring, and a conditional cash transfer is provided to people living in extreme poverty, then they will start businesses and savings groups, and first-time entrepreneurs will have the knowledge, skills, and assets to run profitable and sustainable businesses.


If entrepreneurs form and run successful businesses and savings groups, incomes and savings available for household needs will increase.


If household expenditures increase to meet daily needs, then living standards will increase, and households will  “graduate” out of extreme poverty.

What We Do

Learn about how we use our theory of change to guide program implementation

What We Do