CASESTUDYONTHEAPPLICATIONOFTHEEFFECTUATIONMETHODTOYOUTHENTREPRENEURSHIPTRAININGINBRAZIL

TermsofReferenceYouthBusinessInternational(YBI)isseekingaconsultanttoconductacasestudyon theapplicationof theEffectuationMethod toyouthentrepreneurship trainingby YBImember Aliança Empreendedora. This consultancy is supported throughYBI’s partnership with the Multilateral Investment Fund (MIF) of the Inter-AmericanDevelopmentBank(IDB)throughtheregionalYouthEntrepreneurshipPrograminLatinAmericaandtheCaribbean.BackgroundYouth Business International (YBI) is a global network of 50 independent, non-profitmember organizations collaborating to support young people to start and grow theirownbusiness,creatingjobsandstrengtheningcommunities.YBImemberscurrentlyoperatein47countries,providingintegratedbusinesssupporttounder-servedyoungpeople,combiningtraining,mentoring,accesstofinanceandothersupport services. Our members adapt this common approach to their local context,working in partnership with government, business, multilateral and civil societyorganisations.YBIisfacilitatedbyaNetworkTeambasedinLondonandBogotá.YBI’smemberinBrazil,AliançaEmpreendedora,wasestablishedin2005byagroupofgraduateswho became involved in supporting enterprise creation among low-incomepopulation.Today,theycarryoutentrepreneurshippromotionprojectswithcompanies,governmentsandNGOsthroughoutdifferentregionsinBrazil.TheEffectuationMethodAliança’s training programs for entrepreneurs is based on the Effectuation method1developed by Saras Sarasvathy who found through her research with successfulentrepreneursthattheydidnotfollowtheexpectedcausationapproachofidentifyingagoal and then seeking themeans to achieve it. Instead they followedwhat she termedeffectualreasoning, inwhich entrepreneursbeginby looking at themeans available tothemandthenapplycreativeandtransformativetacticstodefineagoal.The Effectuation method has five core principles: start with your means; take riskswhere the downside is acceptable; leverage contingencies and remain flexible; formpartnerships; and control the controllable. It was identified through research withfounders of companies ranging in size from US$200 million to US$6.5 billion. Itsapplication has focused primarily on high growth entrepreneurs, but Aliança hasadopteditforitsprogramsinsupportofunderservedentrepreneurswhosebusinessesoperateonamuchsmallerscale.Objectives

1Formoreinformation,seethewebsiteoftheSocietyforEffectualActionatwww.effectuation.org

The overall objective of the consultancy is to develop a detailed case study on theapplicationof theEffectuationmethodbyAliança that offers learning for bothAliançaand other organizations working with underserved young entrepreneurs that mightapplytheEffectuationmethod.Specificobjectives:

1. Document in detail the way in which the Effectuation method is applied byAliança Empreendedora in Brazil for underserved entrepreneurs, including adescription of the training curriculum and the Entrepreneurial InclusivenessIndex2(IIE) that tracks an entrepreneur’s capabilities and assets based on theEffectuation method. In addition to documenting the process, the case studyshould,totheextentpossible,identifyevidenceastothesuccessoftheapproach,itsadvantages,potentialdrawbacks,andlessonslearnedbyAliança.

2. CollecthistoricaldatafromAliança’sapplicationoftheIIEtostudyifacorrelationexists between youth-led businesses performance and the Index, so as todeterminewhether the IIE can be considered a predictive tool, and/or a usefulmeasureofchange.

3. DocumentthewayinwhichtheEffectuationmethodhasbeenincorporatedintomaterialsonyouthentrepreneurshiptrainingbyYBIinpartnershipwithAliançaandhowithasbeenadoptedbyotherYBImembers.

4. Throughan international external review, identifyanyotherapplicationsof theEffectuation method to underserved young entrepreneurs and compare itsadoptiontothissegmentversushigh-growthentrepreneurship.

KeyActivitiesToachievetheseobjectives,itisexpectedthattheconsultancywillentailthefollowing:

• DeskresearchtodocumenttheEffectuationmethodandtoidentifyitsapplicationbyotherorganizationssupportingunderservedyoungentrepreneurs.

• InterviewswithNetwork Team staff, YBImemberswho use or are consideringusingtheEffectuationmethod,researchersandotherrelevantstakeholders.

• FieldvisittoBraziltoworkwithAliançaEmpreendedoratounderstandhowtheyapplytheEffectuationmethod.ThiswillrequiretraveltoCuritibawhereAliançaisheadquarteredandpossiblytraveltooneortwoothercitiesinBraziltoseethemethodbeingappliedindistinctcontexts.

• Working closely with Aliança to collect historical data relating to the IIE andinvestigateifacorrelationexistsbetweenbusinessesperformanceandIIEscores.

• DevelopingareportonAliança’sapplicationoftheEffectuationmethod,includingconclusionsfromtheanalysisoftheIIEdataandacomparisonwiththeadoptionofEffectuationbyothers.

• Developing a separate memo for Aliança and YBI with recommendations forfutureuseoftheEffectuationmethodandtheIIEbyotherYBImembers.

2The IIE is an innovative tool developed by Aliança Empreendedora to measure changes in youngentrepreneurs’capacitiesusingfourindicators:WhoIam(entrepreneurscompetencies),WhatdoIknow(managementknowledge),WhodoIknow(networkofcontacts)andWhatdoIearn(growthinpersonalincomeandbusinessrevenue).

ExpecteddeliverablesandindicativetimeframeKeyDeliverables TimeframeResearchBrief based on desk research on the Effectuationmethodandinternationalreviewofitsapplication

February/March

FieldVisittoBrazil MarchInterimReportonIIEdataanalysisandconclusionsonitspredictivecapacity

April

Draft Case Study documenting Aliança’s application of theEffectuationMethod

May

DraftMemowithrecommendationsforYBIandAliança MayFinalCaseStudyandMemoincorporatingfeedback JuneConsultantrequirementsTheconsultant/consultancyteamshouldpossess:

• Experienceofyouthentrepreneurshipprogrammes• DemonstrableknowledgeoftheEffectuationMethodaplus• Technicalskillsinquantitativeandqualitativedatacollectionandanalysis• Excellentwrittenandverbalcommunicationskills• ProficiencyinEnglishandPortuguese.Spanishwillbeaplus.

SubmissionofProposalsProposals for conducting this consultancy must be submitted in English toandrea.dallapalma@youthbusiness.orgbyFebruary19th,2018Proposalsmustinclude:

• CV(maxthreepages)foreachconsultantinvolved• Oneexampleofcomparablework• Technicalproposal (max fivepages) including:understandingof thework tobe

completed;methodology;detailedworkplanwithtimeline• Financialproposalseparatingoutfeesandexpenses• 3professionalreferences

ProposalswillbereviewedbyYBI’sNetworkTeamandoutcomeswillbecommunicatedtoallapplicantsbyFeb26th2018.