The Kudumbashree Story

Community Network

Enterprise Benchmarking and Performance Tracking System

  • Enterprise bench-marking surveys
    • These surveys are meant for developing benchmark values for a set of identified parameters for tracking the performances of micro enterprises run by the poor. It has come out of the understanding of the need for separate performance standards for benchmarking of micro enterprises of the poor; conventional industry standards are not useful here.
    • Data is collected from existing enterprises on their ownership, capital, operations, and costs. MECs collect data for each pilot district and feed into a software application which calculates values for given parameters.
  • Performance tracking system (PTS) 
    • The PTS has been developed for regular monitoring of the micro enterprises set up by poor women. A data collection system is put in place where the entrepreneur can feed information on daily transactions of the micro enterprise. The real time data in the PTS is used for regular monitoring; the data over a period would be fed back into the benchmarking system for revising benchmarking values. This is essential for a robust monitoring system in a dynamic environment.

PTS is a method of systematic collection and analysis of business information, to understand and measure business performance. The system is administered through Micro Enterprise Consultants (MECs), who have the responsibility to ensure maintenance of basic books of accounts by the entrepreneur, collection of data from the enterprise regularly, and generating financial statements from the transaction data thus collected. 

The financial statements allow comparison of the performance of an enterprise over time, and that of different enterprises of the same type at a given point of time. 

Components of PTS

The components of PTS includes registration of enterprises, maintenance of books of accounts, calculations based on transaction data, generation of financial statements, and analysis. 


The MECs may offer advisory services based on the performance assessment done through PTS.

 Process of Record Keeping

The book keeping required for PTS has been made simple, which an entrepreneur could maintain at the location of the enterprise. An entrepreneur is required to keep only three records: a Day Book recording all the primary transactions of a business day,a Stock Register, and a Capital Register recording the periodic changes in the assets and liabilities of the business. MECs have to collect and record a set of fist time information, and then update a set of information collected from the primary books kept with the enterprise. 


Utility of PTS to Stakeholders

PTS helps the entrepreneur in understanding the performance of the enterprise, analysing it, and thereby improving performance. It also helps the entrepreneur in availing finances for the enterprise as it ensures systematic book keeping and timely generation of financial statements. It helps banks and financial institutions in assessing the performance of the enterprise and the credit-worthiness of the entrepreneur. For the State Rural Livelihood Missions (SRLMs), the PTS provides useful information on the performance of enterprises covered under their projects, in monitoring the performance of MECs, and in formulating or changing policies on enterprise promotion.