PSD FIRM LEVEL


PF-01

Number of Investment Committee Members who are Female

Definition: The client adopts or operationalizes a product, internal process, technology or financing structure that is new or not widely used in the domestic sector. Note that “product” includes both physical goods as well as financial products while “domestic sector” can refer to the national market in small countries and regional markets in larger countries. Innovations in supplier or client relationships are covered in the Market Linkages Improved or Expanded Indicator. IFIs who wish to gather additional information on the quality of the result reported may use ‘commentary’ to do so.

Rationale: The indicator captures the adoption or operationalization of innovative business practices, ranging from the financial structuring of the client company to the business processes it uses to deliver products/services. The indicator can be used to track innovative technology transfer without qualifying from where the technology originated. IFIs may wish to undertake more detailed assessment/monitoring of certain aspects of client innovation, but this serves as a good overall capture of innovation.

Unit: Yes/No, with commentary

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PF-02

Market Linkages Improved or Expanded

Definition: The client improves existing or engages new kinds/additional forwards or backwards market linkages, including through its own integration. Note that forward/ backward refers to upstream/ downstream supply chain linkages rather than commodities contracts. Also note that Note that “improved” refers to those linkages that the client believes will provided an added-value to its market expansion whether this is because of improvements in technology- use or cheaper/faster service delivery. IFIs who wish to gather additional information on the quality of the result reported may use ‘commentary’ to do so.
Rationale: This indicator tracks IFI client’s improvement of existing or acquisition of new kinds of forward or backward market linkages. The client directly uses these linkages to expand market access. Examples of forward linkages include the sale of value added services and goods to other firms, such as for example the supply of fertilizers by manufacturing companies to agricultural firms, or customers, while backward linkages include the purchases of inputs from suppliers and service providers, for example sourcing raw materials for manufacturing or agro-processing among others. These linkages may be developed using licensing agreements, supplier sources, international sourcing/distribution, etc. This indicator varies from 'Business Innovation,' which only aims to track the development of innovative products and services by the client.
Unit: Yes/No, with commentary

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PF-03

Market Share Increased

Definition: The client expands operations and increases market share in a concentrated market in which the client is not a dominant player. Note that "dominant" and “concentrated” should be defined by the IFI based on the context in which the client operates. For example, in some markets, a dominant firm may have over 50% of the market share while in another, a firm may be dominant with only 20% of the market share. Market concentration is determined by the number of firms in a market and their respective share of the relevant market. Hence, a “concen- trated” market typically features fewer firms with larger market shares, with or without a dominant player. IFIs who wish to gather additional information on the quality of the result reported may use ‘commentary’ to do so.

Rationale: This indicator captures another level of an IFI client’s contribution to market competition namely, by expanding existing share of a market. This indicator varies from the ‘New Market Entry’ indicator, which applies to IFI clients who have just entered the relevant market. Hence, only one of these two indicators can be applicable to an IFI client at one time.

Unit: Yes/No, with commentary

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PF-04

New Market Entry

Definition: The client enters a new market. Note that “market” refers to the relevant market and varies by country, sector, product and targeted beneficiaries. “Entry” is only relative to the client's own operations, and is denoted by establishment and commencement of sales. IFIs who wish to gather additional information on the quality of the result reported may use ‘commentary’ to do so.

Rationale: This indicator captures one level of an IFI client’s contribution to market competition namely, by entering a market. This indicator varies from the ‘Market Share Increased’ indicator, which applies to IFI clients who expanded their own market share. Hence, only one of these two indicators can be applicable to an IFI client at one time.

Unit: Yes/No, with commentary

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