1. Evaluation Evaluation Summary June, 2013 1

2. 2  The KIEDF Sawa program began operating in 2006 with Bedouin women in the Negev, as a central tool in the fight against poverty.  Since inception, the program has supported the development of approximately 2,700 microenterprises distributing 3,800 loans totaling $6.8 million with 2% default.  The Joint Program with the Israeli government began operating among Arab and Bedouin women in southern and northern Israel in February of 2011. As of May, 2013, 1,757 loans were distributed totaling ₪13.5 Million with 0.8% default.  The program supports microenterprise development and provides training, business consultation and credit. Group and Individual guaranteed non-bank loans are provided through KIEDF’s Postal Bank account.  Evaluation Goals: Examination of the Joint program with the government - Characteristics of Program participants, businesses established, work processes of the program, outputs and impacts  Evaluation Format: questionnaires / interviews with 114 women from a representative sample + data analysis from the Management Information System (MIS) of all participants. Overview

3. Mix methods:  Utilization focused  Participatory research  Combining outcome and process  Sustainability 3

4.  The program reaches its target population - women from poor socio-economic backgrounds who have difficulty making a decent living as salaried employees  The Program has supported the development of 1,570 businesses, of which 44% were new businesses. 61% of the businesses in the south and 30% of the businesses in the north did not exist before the program. (Many of the existing businesses are graduates of the original SAWA program)  83% of the businesses reported revenue at the time of the evaluation, on average two years after entering the program  91% of businesses in the south and 77% in the north are located at home  Average monthly income from the business is ₪ 2,760  Women who had a business before the program, improved their monthly business income by 20% on average  98% would recommend participating in the program to others

5.  General Findings: ◦ 92% of the clients expressed satisfaction with opening their business ◦ Only 12% of participants from the South and 16% from the North believe they would have opened a business without the program ◦ 87% of participants are certain that without their loan their business would not progressed as well as it has today. ◦ Most participants believe they can meet the terms of the loan and the terms are reasonable. ◦ According to the women whose businesses did not succeed, the reasons are mainly due to insufficient early market analysis and lack of business and management skills. ◦ Participants who defaulted on their loans typically could not utilize their loans successfully because their families did not provide assistance or support during changes or challenging times. ◦ Customers expressed a high level of trust in the program and its professionals. The combination of credit, individual business consultation & training days was an important aspect in their business’s development and management.

6.  The Program has a positive impact on the participants and their families creating a significant platform for economic and social development impacting the entire family and future generations: ◦ 84% report that the business has affected them and their families economically and in other ways. ◦ The main effects are - freedom to make economic decisions in the family, often directed to aspects of the children’s education, especially daughters and granddaughters. The participants also report a positive impact on their free time, daily organization, time management and more. ◦ The majority of women understand the role they play in their business’s success and attribute this success to internal factors (such as correct management) and not external factors (such as the will of God or other religious beliefs) ◦ Participants believe that they first and foremost gain economic benefits from their business but also see the benefit to their self-confidence, independence and the development of their business thinking!

7.  Program efficiency is exceptionally high. This can be seen by:  The establishment of numerous businesses  Improvement in the family's economic situation  Low default rate (0.8%)  Impact on economic and educational aspects of lives of children and grandchildren

8. 8  Education - A quarter of the participants from the south have no formal education, an additional quarter have only an elementary school education. Over 60% of participants from central and northern Israel completed high school and some have an academic degree.  Employment –Many of the participants were unemployed before they began the program (they were not employed or self-employed). 36% of all participants – and 54% of participants from the south were dependent on some type of welfare benefits as one of their main sources of income when they began the program.  Average Income - Average income for participants from the south was ₪ 2,000 before they began the program and ₪3,000 for participants from the north. Poverty in Israel is defined as ₪2,500 per capita a month.  Family Status -77% of participants are married, the rest are single, divorced or widowed.  Number of Children – The average number of children in the south is 3 and 2 in the north. With that, many women have more children. Over 11% have more than 6 children and 19% have between 4-5 children.

9.  “ My daily life changed, today I know how to run a business. Despite all the time I had worked with my parents raising sheep, only after joining Sawa, did I learn how to manage a business, how to save and control the money "(South)  " The routine of my life changed for the better thanks to the business. Before I opened my business I used to spend all of my time at home or with neighbors drinking coffee and chatting. After I took on this responsibility, I am more active. I am responsible for the book keeping, communication between me and the customers, time management… I have become more social and have a positive attitude. Also the relationship between my husband and I has improved. He saw that I support him and economically helped in supporting our home. My husband even helps bring stock for the business. "(North)

10.  Refine assistance to women in business thinking in general and market analysis before choosing a particular business specifically. Most women find these issues difficult and this is a big challenge.  Assist women in identifying additional types of microenterprises in order to prevent over competition for the same types of businesses.  Families play a central role in business success. Often the business stands or falls due to attitude of the family. Look for ways to include the family in assisting with the business’s development.