Impact and risk metrics play an important role in efforts by investors, technical assistance providers, certification bodies, and corporations to close the over $400 billion gap between demand for and supply of finance to smallholder farmers.
Metrics can help demonstrate industry impact, improve operating efficiency, and foster collaboration on industry infrastructure to grow the market. A well-implemented metrics strategy can also help to mitigate reputational risks arising from unintended effects on farmers and their families, communities, or ecosystems.
But the current landscape of smallholder finance impact and risk metrics is crowded with multiple units of analysis, target users, and objectives; it is confusing to industry leaders and daunting to potential new entrants. The Initiative for Smallholder Finance hopes to clarify the space and enable greater collaboration through the tools housed on this page, which are explained in our briefing document, “Smallholder Impact and Risk Metrics: A Labyrinth of Opportunity.”
The first tool, a universal theory of change for smallholder finance, seeks to build a shared vision among ecosystem actors and enable greater collaboration when measuring and reporting impact.
The theory of change allowed us to build the smallholder impact literature Wiki, which aggregates research, trials, and studies on smallholder impact so smallholder agricultural investors can quickly access a growing body of research about the impact of their work.
The theory of change also underpins an interactive Prezi map of the current landscape of smallholder impact and risk assessment tools, which intends to help practitioners quickly identify metrics and data collection tools to report the scale of their impact.