YES Fund Assessment Criteria

The business plans submitted for the YES Fund Business Plan Competition are assessed on the basis of their potential ability to contribute to the economic growth of the local economy. We try to select entrepreneurs who have developed a business plan that will generate income, create jobs, and, therefore, contribute effectively to poverty reduction in their region of operation. These businesses need to be(come) sustainable in order to have a sustainable impact on poverty reduction. The foremost criteria for a viable business plan are that a starting/established business idea should have--

• a committed and capable entrepreneur and
• a viable business plan.

The assessment criteria for the selection of sustainable business plans pertain to: (a) the entrepreneur, (b) the business, and (c) the impact of the plan on the development of the region of operation. These criteria have accordingly been divided into three main categories. The listed criteria are applicable for start-ups as well as established businesses.

1. The Entrepreneur
   The entrepreneur will be assessed on his/her
   • commitment to start the business him/herself ;
   • ability to start the business, entrepreneurial qualities, and track record;
   • knowledge and expertise of the specific sector and target region; and
   • personal profile.
2. The Business The proposed business will be evaluated on three main criteria. These are listed below.
   1. Business proposition and marketing:
      • The business proposition should be realistic.
      • The production, distribution, and supply-chain details should be well thought out.
      • The market analysis should be strong. It should provide insight into the customer and why he/she would buy the product.
      • The marketing strategy should be well thought out.
      • There should be a local market for the product or service, and the product/service should be suitable for the target region.
      • The (target) market should have potential for growth.
      • The product/service should be competitive.
        
   2. Feasibility:
      • The existence of customers, consumers, and buyers for the product/service is important.
      • Records of past cash flows and margins would help in the assessment of the business plan.
      • Details of existing business partners would help determine the feasibility of the business plan.
        
   3. Financials:
      • The proposed business should have the potential to be profitable within 3 years.
      • The plan should be based on realistic financial and investment plans.
      • The plan should have collateral and own contribution.
3. The Developmental Impact The YES Fund Challenge aims to maximize the developmental impact of the business on the region of operation, which is in a developing country. The proposed business plan will be assessed on the basis of its potential impact on the development of the local region in terms of its ability to
   
   • generate direct/indirect employment and income;
   • improve the standard of living in the area vis-à-vis access to food, health, and housing amenities;
   • provide avenues for education (knowledge and skills); and
   • contribute to the environment.