Income-Generating Activities - Action Against Hunger

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Productive Capital: Any type of asset that contributes to the family economy. Productive
capital can be tools, animal or land that aid in an economic or subsistence
activity.
Profit: Difference between the total income obtained and the costs that are incurred
in the production and sale of a good.
Profitability: Concept that is used to reflect the capacity of an activity, or productive
process, to produce benefits during a determined period of time. The evaluation
of profitability of an activity depends on the income achieved, the stability of the
profit, the relative value in terms of local prices, etc.
Project Cycle Management: The project cycle includes the various stages of a project:
programming, identification, formulation, financing, implementation, monitoring,
and evaluation. PCM is an approach that aims to improve the management
of the project cycle, using various tools (e.g. causal analysis, LFA, monitoring and
evaluation techniques, etc.).
Purchasing power or power of acquisition: Level of income that permits purchases
or access to markets.
Risk aversion: When a person does not want to take risks; in economic terms it can
be said that it is preferred to have a steady, secure income, even if it is scarce,
rather than taking a risk with something unsure. The most vulnerable population
is often averse to taking risks.
Savings: Part of income that is not spent on goods or services for everyday consumption.
Subsidized price: Price that does not reflect the real price, as a percentage is financed
through some type of donation.
Sustainability: Concept that reflects that the objectives or impacts aimed for by a
programme are maintained in the medium and long term.
Unit cost: Cost for one unit of a product that includes all the expenses for production
and services that have been used during the process.
Value Chain: Description of all the activities that are required from the beginning,
passing through the various phases of production (including all combinations of
physical transformation and the different services necessary) until a product or
service arrives to the final consumer.
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INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY