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whose enterprises are to be supported. Breakthroughs in mobile banking, retail banking,
debit cards, and biometric identification are altering the traditional relationship between
social protection and financial inclusion goals. The project should explore opportunities
for using these new delivery mechanisms in order to reduce transaction costs and to
enable greater decision-making on the use of funds by the recipients themselves (in
accordance with their approved business plans).
Grants and loans should not be provided to crisis-affected people in the same area at the
same time. Such an approach can send mixed signals to clients and result in low repayment
rates, low client satisfaction, and the loss of credit. Similarly, the provision of grants
and loans through the same organization is not advised.
3.2.2 (f) Linking start-up participants to recovery and development
interventions
Livelihoods start-up grants and packages must not be stand-alone interventions. From
the time participants are selected, through the end of the project, linking participants
to opportunities for microfinance, training, business development, and government-led
recovery and development programmes, including those supported by UNDP and other
development partners, will strengthen project results.
Microfinance. Livelihoods start-up support can include innovative approaches to microfinance,
involving microcredit, savings, and/or micro-insurance. Coordination between
the provision of start-up grants and local microfinance initiatives, where they exist, is essential
to ensure a positive contribution to restoring livelihoods—one that does not create
dependency or undermine efforts to provide long-term, market-based financial services.
Training. Training, education, and apprenticeships are key elements of targeted selfemployment
projects, especially for projects targeting youth. Start-up grants and packages
offered without training—or training provided without enhanced employment
opportunities—can easily discourage young or inexperienced workers. Often local
vocational training institutions can provide refresher training and other opportunities that
will enhance the long-term income-generation and employment prospects of project
participants. A useful resource for enterprise recovery training is ILO’s Start and Improve
Your Business (SIYB) Programme. SIYB is a management-training programme that focuses
on starting and improving small businesses as a strategy for creating more and better
employment. This resource can be adapted to both specific crisis and post-crisis contexts.
Business development services. 28 Some targeted self-employment projects have successfully
established or worked with business development services. These services
include training, consultancy and advisory services, marketing assistance, the provision
of information on new trends and opportunities, technology development and transfer,
business linkage promotion, and advocacy for business-friendly regulations. These
services are often transacted services (e.g., management consulting, advertising services,
and market research), embedded services (e.g., design advice to a manufacturer from a
buyer or knowledge on input use from an input supplier), or public benefit services (e.g.,
services provided by chambers of commerce or associations whose influence extends
beyond a single enterprise).
28 See Chapter 4 for further information on business
development services.
Recovery and development programmes. Wherever possible, start-up assistance should
link to the government’s recovery and development strategies and plans at the national
Livelihoods & Economic Recovery in Crisis Situations