Annex II: Definitions

Capacity Building – A process of creating/strengthening the development of an enabling environment and/ or the institutional or human resources of managerial systems.

Causal Chain Model – A depiction of the logical or causal links between project activities, outputs, outcomes, and the ultimate impact of the project.

Decentralized Management Structure – A management structure that relies on lateral relationships and places decision-making and governance at the level of citizens/clients.

Evaluation – A function that involves not only the ability to monitor, but also to assess in a systematic and objective manner the effectiveness of a program in improving outcomes.

Financial Literacy – The ability to understand finance sufficiently to make appropriate decisions regarding one’s personal finances. Financial Services – Services that involve money and include deposit services, loan services, remittance services, transfer services, etc.

Financial Services Provider – An entity that offers one or more services related to money. This could be a commercial bank, non-banking financial institution, credit union, financial cooperative, rural bank, microfinance institution, consumer lender, or community-managed institution.

Focus Group Discussion – A participatory market research tool that brings together six to eight people that represent the same type of participants for a conversation around a specific issue or set of questions put forward by a facilitator.

Holistic Programming – Holistic programming addresses multiple facets of young people’s lives, acknowledging the interconnected nature of health, education, economic opportunities, and empowerment in young people’s development.

Impacts – The long-term effects caused by the program activities. This includes sustainable changes or permanent status resulting from changes in behavior over a period of time.

Impact Assessment – A particular type of evaluation that is structured to isolate the effect of specific program activities on longer-term youth outcomes. Impact Assessment involves data collection to compare groups receiving the program products or services and other, similar groups who do not.

Job Readiness Training – Training in the skills necessary to enter or re-enter the workforce.

Life Skills – Skills that are commonly known as “soft skills”, as they encompass personal and inter-personal skills that affect social and work performance. The World Health Organization (WHO) defines life skills as the ability for adaptive and positive behavior that enables individuals to deal effectively with the demands and challenges of everyday life.

Market-based Assessment – An assessment of the market for products and services. It includes labor markets in which the target population(s) of workers competes for jobs and employers compete for workers.

Market-Based/Driven Approach – An approach that is designed and implemented in response to the known needs, interests, and realities of the market. The approach is framed around relevant and productive business sectors and the opportunities and resources that support profitable engagement in those sectors. The Market-Based/Driven Approach focuses on financial viability and profit.

Mentor – Typically, a seasoned business professional, who is willing to advise someone with less experience. Mentors share their knowledge and experience about business, markets and how to succeed. They guide young entrepreneurs as they build their businesses and take on more responsibility.

Micro Consignment – Commission-based sales model that provides people low-risk entry points into entrepreneurship.

Microfinance – The provision offinancial services, which includes credit, savings, insurance, transfers, remittances, etc.tolow-incomeclients who traditionally lack access tobankingand related services.

Micro-franchise – A small business that has been replicated from a proven franchise model.

Monitoring – A function that allows implementers and main stakeholders to track whether financial resources and other inputs are being used according to plan in attaining project objectives. Monitoring also can involve choosing which outcomes are expected to improve among participants and having the ability to measure those changes over the course of the program.

Non-formal Education – Any intentional and systematic educational enterprise, usually outside of traditional schooling, in which content is adapted to the unique needs of the students.

Non-financial Services – A wide range of services that include amongst other things, financial education, business development services, business training, value chain analysis, etc. that may be related to or in support of effective use of financial services.

Open Source Technology – Technology that is developed concurrently and in collaboration with peers, with the end product (and source-material) available at no cost to the public.

Outcomes – The short and medium-term effects of project outputs for participants.

Outputs – The direct products of program activities, such as the number of clients served and units of service provided.

Participatory Needs Assessment – An assessment that engages a target group in identifying their specific needs.

Portfolio at Risk – Measurement of the total outstanding balance of loans past due - not late payments or payments not yet due - divided by the active portfolio. A more rigorous manner of assessing portfolio quality than portfolio past due/ delinquent portfolio. Source: ACCION

Public-Private Sector Partnership (PPP) – A government service or private business venture that is funded and/or operated through a partnership of government and one or more private sector companies.

Randomized Control Trial – An impact assessment methodology that randomly selects some individuals or groups for participation in an intervention, while assigning others to non-participation (control group) status (for a period of time).

Safe Spaces – Private areas that young people can access easily and that are out of public sight, accepted by the larger community, and free of adults beyond those associated with the institution providing them. Safe spaces empower youth, allow them to speak freely and learn from and teach others their age. Practitioners can incorporate safe places into financial services programs to provide a place for youth to access training, mentoring, and other support.

Scale – The process of extending and expanding change, social benefit and value by increasing the number of people benefiting from a change that they have adopted or adapted.

Situation Analysis – Analysis of the social, political, and cultural contexts of a given target group.

Sustainability – The state achieved when all costs are internalized by the program; the program does not rely on outside sources to cover operation costs. It also can refer to the duration of a program or organization.

Value Chain Analysis – An analysis of the economic actors (and the relationships between them) who make and transact a particular product as it moves from primary producer to final consumer. The value chain comprises the players, activities and linkages that add value to products or services as they move up the chain.

Village Savings and Loan – A savings-led group-based model for delivering financial services, particularly in remote, rural areas. They may or may not be linked to formal financial institutions.

Vocational Training – Training that prepares learners for employment based in manual or practical activities, traditionally related to a specific trade, occupation or vocation.

Youth – The period between childhood and adulthood. Definitions of the specific age range that constitutes youth vary, but the United Nations defines youth as between 15 - 24 years of age.

Youth-Inclusive Financial Services – Range of financial products and services that are intentionally designed and/or adapted to meet the needs of specific youth market segments.

Youth Livelihoods Development – An approach that intends to provide youth the means to live through income-earning opportunities, business services (including finance) and training. It takes into account the assets and skills young people have, as well as the context in which they live. It also often promotes policy and social change to improve young people’s livelihood prospects, and involves alliances, networks and institutions for youth to advance their economic interests.

Youth-Serving Organization – An entity, generally a non-governmental organization, which has as its primary focus, or one of its main focus areas, providing services and support specifically to young people.