Livelihood Engagement Framework

A 3-TIER A FRAMEWORK towards developing an IB project

The framework shows that Inclusive Business falls within the Livelihood and Enterprise Development spectrum, which means that a basic livelihood intervention (e.g. community relations projects, skills and managerial training), when developed further, can lead to an inclusive business project.

Developing an IB project entails a process that undergoes various phases. IB does not advocate a one-time, big-time approach wherein a project will automatically generate job and increase income. Thus, depending on the needs and skill sets of the communities, companies may be engaged in different levels but ensure that all interventions will lead to increasing income and providing long-term livelihood for the community beneficiaries.

SOCIAL PREPARATION

In the past 5 years, an estimated 25% of Philippine households live in poverty, 10%, of which were food poor. Livelihood projects for these communities—often in the form of cash for work, cash grants, and other similar activities—are designed to be provided immediately but are often temporary. It is important that while these communities are being assisted with food and basic necessities, they need to be prepared to take on more challenging but appropriate forms of livelihood for them to be able to move on to the next phase.

INCUBATION

In the Philippines, a family of five requires, at minimum, PhP 105,336 per year to gain nutritious food, proper clothing and shelter, and other non-food essentials. To reach an aggregated income that exceeds this amount, household earners will need to have skills related to products and services that are in demand, discipline to maintain their financial standing, and courage and wit to meet challenges head on. Community producers are trained to become Entrepreneurs. Much support is needed to build themselves. Since these communities are still in a precarious position, success is anchored on the assumption that no economic shocks will happen while their livelihood is being developed. It maybe unstable but this path is necessary to establish economic development.

COMMERCIALIZATION

The epitome of any livelihood program is one that can provide financial security through a stable form of work and allows for provisions to act as buffer against most economic shocks. PBSP recognizes that for decent work and sustainable livelihood to happen, household earners must now be able to participate productively in the value chains of companies. Both the companies and the communities must be equally prepared to make this happen. Companies must be ready to provide employment opportunities, make local sourcing, fair purchasing and marketing agreements with smallholder suppliers, outsourcing services and value adding activities, etc. On the other hand, communities must be ready to produce the required volume and up-to-standard quality produce. Achieving this allows for a truly sustainable form of livelihood, one that benefits both communities and companies.