Theory of Change
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
Problem
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.
Solution
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.
Outputs
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.
Outcomes
If entrepreneurs form and run successful businesses and savings groups, incomes and savings available for household needs will increase.
Goal
If household expenditures increase to meet daily needs, then living standards will increase, and households will “graduate” out of extreme poverty.