New Firms Entered (OI3141)

This metric is intended to capture whether (other) private sector firms entered the organization’s market during the reporting period. In some contexts, this metric measures increased competition that may be related to the organization’s success. However, the entry of new firms should not be attributed directly to the organization’s activities, nor can it be fully attributed to a specific intervention.

Increased competition in a relevant market is often accompanied by an increase in product or service quality or a decrease in product or service price, though these trends alone do not always indicate an entry of new firms; in particular, these trends may also result from the reaction of existing players in relevant markets to new entrants or potential new entrants. However, the entry of new firms into a market is easier to measure than changes in the strategy or positioning of existing firms in that market.

This metric applies only if the organization is expected to attract other firms to the same market and may be used alongside New Market Entry (OI3441) or Market Share Increased (OI4211). Data for this metric may be tracked annually (throughout a project cycle) or through an evaluation or survey.

International Finance Institutions (IFIs) often use this metric as part of their analysis of private sector development.