MARKET-BASED APPROACHES TO ALTERNATIVE LIVELIHOODS

Lessons from Bangladesh and Nepal

MARKET-BASED APPROACHESSeptember 26, 2019

Presenters:• Opening remarks by Charles Davis, USAID’s Office of Food for Peace • Saeqah Kabir, Senior Manager, Knowledge Management and

Communications, Nobo Jatra/World Vision Bangladesh• Bakaul Islam, Team Leader, Nobo Jatra/Winrock International• Malini Tolat, Advisor Asia Livelihoods, Save the Children USA• Toyanath Pandey, Senior Advisor Financial Services, Sabal/DEPROSC-

Nepal

Facilitator: Tara Noronha, SCALE Alternative Livelihoods Lead

• Welcome from USAID’s Office of Food for Peace (FFP)

• SCALE Introduction & Survey Highlights• Lessons from Bangladesh• Lessons from Nepal• Q&A Session

Agenda

Strengthening Capacity in Agriculture, Livelihoods and

Environment (SCALE) strengthens the impact,

sustainability, and scalability of FFP-funded agriculture,

natural resource management, and off-farm livelihood activities in both

emergency and development contexts to ensure that

communities and families are fully benefiting from the

initiatives.

INTRODUCTION TO SCALE

● 69 respondents with alternative livelihoods experience

● 79% field based● 55% with FFP/OFDA initiatives

Biggest challenges to alternative livelihoods: • Inadequate budget (41%) • Limited technical resources (30%) • Staff capacity (17%) • Other (11%)

Most useful platforms for learning and networking:• In-person meetings and conferences• Field visits• Toolkits and guidance notes

SCALE Survey Highlights

Market-based approaches (29%) &Sustainability (26%)

● Principles ‘not new’ but respondents believe facilitation, scaling-up, and exit strategies rarely happen in practice

● Difficult to implement in fragile contexts● Challenges with market assessments● Limited local opportunities for viable alternative

livelihoods● Issues around staffing and budgeting for market-based

alternative livelihoods

Priority Areas for SCALE: Alternative Livelihoods

ALTERNATIVE LIVELIHOODS AND PRIVATE SECTOR

ENGAGEMENT

Nobo Jatra – New BeginningWorld Vision Bangladesh

26 September, 2019

OVERVIEW

Nobo Jatra-New Beginning is a five year USAID Food for Peace Title II

Development Food Security Activity working in

Southwest Bangladesh

NOBO JATRA GOAL AND PURPOSES

NOBO JATRA

KEY COMPONENTS

ALTERNATIVE LIVELIHOODS STRATEGY

OBJECTIVESBuild a bridge to and leverage the unique capability of the private sector to address sustainable income challenges of the poor.

Move toward enterprise-driven development or market-driven models and pursue new ways to collaborate and leverage resources.

Use findings from the Agriculture and Livelihoods Market Assessment to refine, inform, and adapt implementation.

Involve private sector to help achieve sustainable employment and increase income for the NoboJatra target population.

MARKET ASSESSMENT Objective: To identify suitable alternative livelihoods (on and off farm) and determine strategies to include participants in business options.

◼ Criteria for alternative livelihoods

• Market driven

• Gender and youth sensitive/inclusive

• Sustainable

• Private sector potential

• Climate smart/resilient

◼ Market linkage strategies

• Buyer/seller linkage meetings

• Private sector and government as resource persons in technical trainings

• Buy-back mechanism

• Workshops with private sector and trained participants

• Electrical servicing• Motor mechanic

• Computer shop• Shopping bag making

• Bio-fertilizer/pesticide • Last mile distributor• Carpentry• Masonry • Nutrition promoter• Food processor • Nursery

• Mobile input vendor• Vaccinator• Dry fish• Tinseling• Toy/handicrafts making• Day Old Chick supplier

Growth Potentials

Inco

me

Ear

ning

Pot

enti

als

MATRIX FOR PROFITABLE ALTERNATIVE LIVELIHOODS

ENTREPRENEURIAL LITERACY

◼ Timing and Duration• 6 months, 3 days per week

• Mutually agreed times

◼ Curriculum• Basic literacy, savings, and credit

• Core business and financial concepts

• Integrated nutrition, WASH, and resilience messaging

◼ Facilitators and Sessions• Local youth facilitators employed

• Child-friendly corners

PRIVATE SECTOR PARTNERSHIPS (Micro Small Enterprises)

Scoping Engaging Partners

MoUdeveloped & implemented

Measure progress and

renew

Workshops at sub-district, district, and national level to generate interest and identify promising private sector partnerships.

Organize and participate in trade fairs.

Train participants involving private sector and provide required tools and inputs on cost sharing basis.

Formalize MoUs with private sector actor to buy in and invest in local communities (‘buy back mechanism’).

PRIVATE SECTOR LINKAGES

ALTERNATIVE LIVELIHOOD OUTCOMES

BEST PRACTICES • Mini trade fairs to crowd in private sector and

build demand• Cost leverage with the private sector to scale

up supplies provided on loan, training on production, and buy backs of the production

• Gender responsive/inclusive

CHALLENGES • Private sector engagement (quality control,

access and remoteness, market demand)• Socio-cultural variables to non traditional AIGA

selection • Migration • Potential for income growth

Thank Youhttps://www.wvb-nobojatra.org/

https://www.fsnnetwork.org/alternative-livelihoods-and-private-

sector-engagement-south-west-bangladesh

SABAL: ALTERNATIVE LIVELIHOODS

• Implementation Period: October 2014 – February 2020

• Districts:Dolakha, Kavrepalanchowk, Khotang, Makawanpur, Nuwakot, Okhaldhunga, Ramechhap, Rasuwa, Sindhuli, Sindhupalchowk & Udayapur

• Livelihoods VDCs: 264 in 11 districts

• Health and Nutrition VDCs: 326 in 6 districts

• Disaster Risk Resilience/Climate Change Adaptation VDCs: 224 in 11 districts

SABAL SNAPSHOT

NEPAL CONTEXT

Preferences Aptitude

Knowledge/Skills

HUMAN FACTORS

STRUCTURAL FACTORS

Limited productive assets/land size reducing every

generation

Risk Low Value Seasonality

ECONOMIC FACTORS

Migration

Earthquake

Migration

• Addressed inadequacy of on-farm income potential (most vulnerable & excluded)

• Matched individual aspirations & capabilities (more productive outcomes)

• Risk diversified HH livelihood portfolio’s• Soft skills/financial literacy increased ability

to proactively manage risk• Enabled increased bridging and linking

capital for HH’s and individuals• Increased community resilience (availability

of relevant skills)

Contribution of Alternative L/H

SP1.1• Strengthened Livelihoods

of PVSE HH’s and individuals

SP1.2• Improved economic risk

management capacity

Stable Income of HH’s and individuals especially PVSE men and women increased

SABAL RESULTS FRAMEWORK

OVERALL RESULTS

• Total 10,263 participants engaged in over 20 different categories of employment/self-employment.

• 5,559 unemployed youth received entrepreneurship, job readiness skills and vocational trainings for off-farm work. 60% employed within 3 months.

• 4,704 entrepreneurs from very vulnerable HH’s received training and 2,109 (45%) successfully started their enterprise.

SIYB training being given to farmer’s group members

SUMMARY OF INTERVENTIONS

Tracks: Trade based employment/self-employment and microenterprise• Need based skill development

training (life skills integrated)• Support vulnerable women

participants with start up capital • Facilitate employment with

private sector • Linkage with financial

institutions

EMPLOYMENT/SELF-EMPLOYMENT: HOW IT WORKED

Vocational Training (inbuilt life skill training): • Trades based linkage with

private sector for Employment• Self-employment: linkage with

financial institutions for loans • Safer Migration as a skill labor

- across the border • Income tracking within 3

months

5,559 Participants

Mar

ket A

sses

smen

t

Yout

hs a

nd S

tere

otyp

e

390 hrs. Package including 312 hrs

OJT

Skill Test By NSTB/CTEVT

Private Sector Linkage/SIYB

Off- farm livelihood activities

Off -farm livelihood sustainable diversification model

Skill labor / Enterprise Establishment

Income tracking

Female

31%

Male69%

VT Participants

0% 20% 40% 60% 80% 100%Community Livestock Assistant

Wielding

Dress Making

Bike Repairing

Electrician

At least 50% employment rate for different Vocational Training

15%7% 3%

11%

38%14%

26%

9% 8%

Women engaged in stereotype Vocational Training

AC/Fridge Repair MechanicAuto MechanicsBike RepairingCarpenteryComputer Hardware TechnicianElectricianMasonaryMobile Repairing

Mentoring & technical follow up

SIYBParticipant

s 4704 F-77%M- 23%

Market demand based

Business plan development

7 days Technical Skill Training including life skill

Linkage with financial institutions & Income tracking

Business startup support to women entrepreneurs (ultra poor)

ENTREPRENEURSHIP: KEY RESULTS

• Participants: Unemployed Youths - 4704• By the end of the training: business plan finalized –

2059 (44%) • Enterprise Established: 1653 (80%)• Linked with FIs for loans

• Average SIYB loan size: 91.48 USD• Average SIYB gross income: 204 USD/per month• Average VT income: 108 USD/month• Income tracking within three months

ELEMENTS OF SUCCESS • Youth mobilization/retention• Market responsive training • Use of accredited curriculum VT

(CTEVT) and SIYB (ILO)• Regular follow-up home visits, and

business counselling by staff and service providers

• Increased access to financial services• Linkage with multiple stakeholders

CHALLENGES FACED

• Increasing trend of youth migration in Nepal

• Lack of advance skill development and technical support services in rural areas

• In adequate resource persons in the interior rural training location to maintain the standard quality

SUCCESS STORY "I had to request for other family members even to purchasestationery for the children. Now, I am happy and self-dependent afterstarting a tailoring shop at the village. I [did] a 52 days dress makingtraining (VT) from Sabal, passed the skill test, and started my ownbusiness. I am able to feed my children, to pay education fees, andmanage stationery and dress. My monthly income is on average Nrs.15,000.00. Before training, I used to do only agriculture labor for littleearning; now I can give work for others. I am happy with this skilland trained this skill for other 3 youths in the village too. I want tosuggest the youths that it is possible to earn money in our villageand live happily; but learning technical skill is the most important.”

- Gunja Budhathoki, Raniban VDC, Ward -6, Okhaldhunga, Tailoring (VT) and SIYB trainee

FINAL TAKEAWAYS• Long term value of technical skills

(accreditation) • Transferable soft skills• Multiple entry points with private sector

• As a key informant for LMA (iterative)• Training delivery (using industry experts as

trainers)• On the job training/apprenticeships/mentorship• Post employment follow up

Q&A

This presentation is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of the SCALE Award and do not necessarily reflect the views of USAID or the United States Government.

Questions?

Contact us: scale@mercycorps.org

For more info, visit www.fsnnetwork.org/scale