Terms of Reference Exploring the Viability of Micro-Social Enterprise Models as a Long-Term Sustainability Strategy for Local and National NGOs

Terms of Reference

Exploring the Viability of Micro-Social Enterprise Models as a Long-Term Sustainability Strategy for Local and National NGOs

1. About Trócaire

Trócaire is the official overseas development agency of the Catholic Church in Ireland. Trócaire was established to express the concern of the Irish Catholic Church for any form of human need, but particularly for the needs and challenges faced by communities in the Global South. Together with our partners, we work towards supporting women, men and communities for long-term change. In Ireland, we raise awareness about the causes of poverty through our outreach programmes in the education sector, through parish networks, and through our public campaigns and advocacy work. More information about Trócaire is available at www.trocaire.org.

1. Context for the Work

Local and national non-governmental organisations (LNNGOs) are facing mounting financial pressures as donor funding declines and competition for limited resources intensifies. According to the UN’s 2024 Global Humanitarian Overview, the global funding gap now exceeds 50%, leaving LNNGOs increasingly unable to secure the sustainable resources required to meet the growing needs of vulnerable communities. Despite their deep-rooted local knowledge and community presence, these organisations often face significant barriers to funding, including burdensome compliance requirements and limited access to donor channels that continue to favour large international NGOs (INGOs) with more advanced financial and administrative systems. Many local and national organizations are actively exploring strategies to diversify their income sources—including the creation of social enterprises.

The growing trend of INGOs establishing national branches to secure funding intended for local and national actors further exacerbates this challenge, placing LNNGOs in competition with these agencies and with one another. This dynamic undermines the long-term viability of local organisations, which often rely on short-term project-based funding that restricts their ability to plan for growth, retain skilled personnel, or invest in institutional capacity.

In this context, alternative funding models (such as private sector partnerships, social enterprises, and impact investment) offer promising opportunities to reduce dependency on traditional donor funding. These models could help LNNGOs build financial resilience, strengthen operational capacity, and increase their ability to deliver sustainable, high-impact programming.

To explore the viability of such models, Trócaire has commissioned a research study to assess whether and how micro-social enterprise approaches can serve as a contextually appropriate and sustainable strategy for its local and national partners. The research will examine:

• The risks, challenges, and enabling conditions associated with micro-social enterprise models;
• Operational considerations and resource requirements for implementation of such models;
• Practical recommendations for LNNGOs interested in adopting or piloting such models.

The findings and recommendations emerging from this research will inform Trócaire’s future approach to partnership and financial sustainability, guiding how the organisation supports its local and national partners to strengthen their resilience. Insights from the study will help shape programme design, strategic engagement, and capacity strengthening and sharing initiatives, ensuring that Trócaire’s localisation efforts are grounded in evidence and aligned with the aspirations and realities of its partners.

1. Scope of Work and Key questions

This research will generate actionable insights to guide Trócaire and its partners across 16 country programmes in evaluating the viability and appropriateness of micro-social enterprise models as a pathway toward funding diversification and financial sustainability for local and national actors. The study will draw on a sample of contexts (including those where micro-social enterprise models are more advanced, as well as those where such models are still emerging), with attention to their diversity, market dynamics, and legal frameworks, as well as varied experiences among Trócaire’s partners. The consultant is expected to assess the following thematic areas and respond to the guiding questions below:

Thematic Area

Key Questions

Sectoral Relevance

In which sectors or thematic areas is the micro-social enterprise model most viable for LNNGOs, based on existing examples and partner priorities?

Contribution to Financial Sustainability

What specific benefits does the model offer in terms of core cost recovery, the time period needed before business models show returns, programme continuity, and reduced dependency on external donors? How realistic are these benefits in the short, medium, and long term?

Model Suitability for LNNGOs

What organisational characteristics (such as governance structure, mission alignment, risk tolerance, and size) make an LNNGO suited to adopt or adapt a social enterprise approach?

Risks and Trade-offs

What are the main financial, reputational, strategic, or regulatory risks associated with the model? What trade-offs might LNNGOs face when balancing social impact with revenue generation? Will the trend in establishing social enterprises lead to saturation in the micro-social enterprise space

Contextual Viability

Under which legal, political, fiscal, and market conditions can a social enterprise model succeed? How do national NGO laws, registration statuses, and trading restrictions impact feasibility?

Operational Requirements

What level of investment—financial, human, and infrastructural—is required for local and national organizations to develop, launch, and sustain a social enterprise? What institutional capacities (e.g., financial management, business planning, leadership) are needed? What forms of external support or strategic partnerships may be necessary to ensure long-term viability?

The Methodology

This is a remote consultancy, and Trócaire welcomes consultants to propose their own methodological approach in line with the consultancy objectives. While the below structure outlines a suggested sequence, there is flexibility for the consultant to adapt or expand on these methods as appropriate. The approach is expected to include a mix of desk-based research and stakeholder engagement, carried out in phases:

1. Inception Phase: This phase will include a kick-off meeting with Trócaire to align on the consultancy scope, clarify expectations, and refine the methodology and work plan. The consultant will confirm the research design (likely a mixed-methods approach combining desk review, a short partner survey, and qualitative interviews) and propose a detailed timeline. Trócaire will provide relevant background documents and facilitate connections to key stakeholders.
2. Desk Review: The consultant will undertake a literature review and analysis of relevant case studies and internal documentation. This will include examples from diverse contexts, including where social enterprise models are mature, emerging, or absent, to ensure relevance and broad learning. Findings from the desk review will inform the design of subsequent data collection.
3. Survey: A brief online survey will be administered to Trócaire’s partner LNNGOs and potentially other stakeholders to collect insights into their current experience with or attitudes toward social enterprise models. Survey data will help surface trends and shape follow-up inquiries.
4. Qualitative Research: Remote Key Informant Interviews (KIIs) and Focus Group Discussions (FGDs) will be conducted to deepen the understanding of issues raised during earlier phases. Participants may include leaders of partner organisations, social enterprise practitioners, or donor representatives. Trócaire will assist with participant identification and outreach, but the consultant is encouraged to suggest stakeholders as well.
5. Analysis & Reporting: The consultant will synthesise findings from all data sources and validate preliminary insights with Trócaire and selected stakeholders (e.g., via a debrief session), and revise the report based on collected feedback. A final report will be submitted, outlining key findings, conclusions, and actionable recommendations to inform future strategy.

Expected Deliverables

The consultant will be expected to deliver the following outputs:

• Inception Report: A concise report submitted following the inception phase, outlining the proposed approach and framework for the consultancy. It will include: a refined scope and objectives, detailed methodology, data collection tools, and updated timeline/work plan. Trócaire will provide feedback to finalize and validate this as the roadmap for the assignment.
• Draft Research Report: A comprehensive report presenting preliminary findings and analysis, structured as follows:
  • Executive Summary
  • Introduction and Background
  • Methodology, including research design, tools used, sample/participants, and limitations
  • Key Findings in response to the research questions
  • Strategic and Operational Recommendations for Trócaire and partners
  • Annexes, such as reference list of literature reviewed, case study examples, and any relevant data collection tools or instruments
• Revised Draft: A second version of the report that incorporates feedback received from Trócaire and key stakeholders.
• Presentation: The consultant will also deliver a virtual PowerPoint presentation summarising the research process, key findings, and recommendations. The session will be used to validate and gather final inputs from Trócaire and partner representatives.
• Final Report: A polished version of the report incorporating all feedback received from the second draft. The final report should be clear, actionable, and suitable for sharing internally and externally. (Note: The report should be up to an estimated 30-40 pages; it will be graphically designed internally by Trócaire).

Timeline

The consultancy is expected to be completed within an estimated 25 working days, spread over a period of two months from the date of contract signing.

1. Required Knowledge and Experience

The consultant should possess the following qualifications:

• A master’s degree or higher in a relevant field such as finance, economics, public policy, international development, or a related discipline.
• Demonstrated experience in social enterprise development, particularly in micro or community-based models.
• A strong track record in conducting feasibility studies, market assessments, and risk analyses for micro, social, or community enterprises.
• Experience working directly with local and national organisations, particularly in Global South contexts, with an understanding of the barriers they face in achieving financial sustainability.
• Familiarity with legal and regulatory frameworks governing the establishment and operation of social enterprises, including aspects such as registration, governance, and taxation.
• Proven ability to conduct qualitative and quantitative research, including the design and facilitation of remote Key Informant Interviews (KIIs), Focus Group Discussions (FGDs), and surveys.
• Experience facilitating remote consultations with diverse stakeholders and synthesising multi-source data into clear, actionable insights.
• Strong cross-cultural communication and analytical skills, with the ability to engage meaningfully with a variety of actors including grassroots organisations, donors, and policy influencers.
• Prior publications, think pieces, or knowledge products on social enterprise models, financial sustainability, or related topics are highly desirable.

Safeguarding

All consultants who work for Trócaire will be required to sign and abide by Trócaire’s official position statement on exploitation and abuse, including zero-tolerance for sexual exploitation and abuse. Trócaire recognises that abuse of power has led, and continues to lead, to many forms of exploitation and abuse. The nature of Trócaire’s work creates a power differential between those employed by or working with Trócaire and programme participants and partners. Trócaire acknowledges that the potential exists for those who work with programme participants and partners to abuse their position of power. Trócaire’s commitment to safeguarding is inclusive of its staff and all those with whom it comes into contact through its work.

Confidentiality

The consultant will be required to maintain strict confidentiality regarding all information accessed or obtained during the consultancy. This includes, but is not limited to, data, documents, and insights related to Trócaire and its partner organisations. The consultant shall not disclose, reproduce, or share any sensitive or proprietary information without prior written authorisation from Trócaire. This obligation remains in effect both during and after the completion of the assignment.

1. Reporting & Management

The consultant will report to Trócaire’s Localisation Advisor – Funding and Resources. Regular check-in meetings will be held throughout the consultancy to ensure alignment on objectives, discuss progress, address any challenges, and review emerging findings. Trócaire will also facilitate access to key documents, stakeholders, and partner organisations as needed to support the successful delivery of the assignment.

How to apply

Submission of Proposals

All applications should be submitted via email to infohub@trocaire.org no later than 17th June 2025. Please include the subject line: Micro-Social Enterprise Model Research.

The application should include the following:

• Technical Proposal outlining the proposed methodology and work plan, including a tentative timeline for each activity.
• Financial Proposal which includes the consultant’s proposed daily rate in Euros.
• Curriculum Vitae (CV) of the consultant(s).
• Contact information for two professional references.
• Two writing samples of similar or relevant work.
• Conflict of Interest Statement: Applicants should state clearly whether they have an actual or potential conflict of interest with the staff, volunteers, and/or board of Trócaire.

Please direct any questions to infohub@trocaire.org.

Evaluation Criteria

Proposals will be evaluated based on the following criteria:

• Understanding of the Assignment (20%): How well the consultant understands the objectives, scope, and expected outcomes of the consultancy.
• Methodology and Work Plan (30%): Clarity of the proposed approach and methodology.
• Relevant Experience and Expertise (20%): Evidence of past experience and technical expertise relevant to the assignment.
• Financial Proposal and Cost Efficiency (30%): The consultant’s proposed budget. The financial proposal should be competitive and justify costs relative to the scope of work.