MARKET ASSESSMENT FOR INCOME GENERATION GROUPS IN GODE

SUBMITTED TO SOS CHILDREN’S VILLAGE PROGRAM- GODE

By

Shebelle Sustainable Development Consultancy-PLC Abdirizak Haybe Ali

MSc in Pastoral Economics &Development (candidate student)

Email: abdirazak.haybe@gmail.com skype: ahaybe

2014

Acronyms ADRA Adventist Development &Relief Agency

ADHORN Association Develop Horn

CHF Community Habitat Fund

CSA Central Statistical Authority

DAADO Daryel Awareness &Development Organization

DFID Department for International Development

DPPB Disaster Prevention &Preparedness Bureau

FAO Food and Agricultural Organization

EHCC Eastern Harerghe Catholic Centre

JICA Japan International development Agency

MERLIN Medical Relief Lasting NGO’s Non-governmental Organizations

OWDA Ogaden welfare &Developmental Association

SCI Save the Children international

UNICEF United Nations Children’s Fund

WFP World Food Program

WASDA Wabi-Shebelle Development Association

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Acknowledgement

This study has not been possible without the participation of selected business groups, households, government line offices, community based organizations, local and international NGOs and other stakeholders In Gode town. Would like to pass my thanks and gratitude to the time they provided and the valuable ideas and information they shared as well as their precious thoughts and comments they contributed. More specifically I would like to thank Mr. kabdid of SCI, Mohamed Sahel of Gode city council administration MSEDA head and my other collogues who strongly supported for this study.

Table of Contents Acknowledgement -----------------------------------------------------------------------------------------2

Acronyms ----------------------------------------------------------------------------------------------------3

Executive Summary ---------------------------------------------------------------------------------------6

1. Introduction & Background------------------------------------------------------------------7&8

1.1. Purpose of study------------------------------------------------------------------------9

1.2. Methodology of study-----------------------------------------------------------------10

1.3. Sampling-----------------------------------------------------------------------------------10

1.4. Study tools/Instruments---------------------------------------------------------------10

1.5. Source of Data----------------------------------------------------------------------------10

1.6. Data Collection----------------------------------------------------------------------------11

1.7. Data Analysis-------------------------------------------------------------------------------11

2. Socio economic background of the study area---------------------------------------------12

2.1. Overview of Somali region--------------------------------------------------------------12

2.2. Overview of Shebelle zone--------------------------------------------------------------12

2.3. Overview of Gode Woreda/City administration------------------------------------13

2.4. Basic livelihoods----------------------------------------------------------------------------13

3. Findings of the study ---------------------------------------------------------------------------- 14

3.1. Demographic features, level of literacy &marital status of respondents -- 14

3.2. Asset ownership ----------------------------------------------------------- 15

3.3. Alternative livelihoods & household income changes/increase---------------- 16

3.4. Case study-1------------------------------------------------------------------------------- 16

3.5. Main source of food for the household & Access to credit--------------------- 17

3.6. Access to credit--------------------------------------------------------------------------- 17

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3.7. Supply and Demands of commodity--------------------------------------------------19

3.8. Main source of livelihood /income for the HH-------------------------------------20

3.9. Case study2--------------------------------------------------------------------------------21

3.10. Increase of household income---------------------------------------------------------21

3.11. Traditional financing system/Ayuuto/------------------------------------------22&23

3.12. Loan repayment process and its constraints---------------------------------------23

3.13. Purchasing power parity of the clients----------------------------------------------23

3.14. Rental cost of the business and profit margin--------------------------------24&25

3.15. Coping strategy adopted by the interviewed individuals------------------------26

4. Sustainable livelihood framework------------------------------------------------------27&28

5. Trends of formal and informal sector-bank/Ayuuto/-----------------------------28&29

6. Livelihoods &Food security---------------------------------------------------------------------29

6.1. Sources of income------------------------------------------------------------------------29

6.2. Sources of food----------------------------------------------------------------------------30

7. Summary of prevalent IGAs & Capital required ------------------------------------30 &31

8. Stakeholders Analysis----------------------------------------------------------------------------31

8.1. Partners operating in Gode &analysis of service delivery-----------------------31

8.2. Micro small enterprise &development Agency------------------------------------32

8.3. International NGO’s &UN Agency-----------------------------------------------------32

9. Conclusion &Recommendation----------------------------------------------------------33&34

9.1. Conclusion-----------------------------------------------------------------------------33&34

9.2. Recommendation------------------------------------------------------------------------34

Executive Summary

This study was premeditated for the purpose of finding feasible, viable and profitable business activities for women IGAs supported by SOS CVP Gode family strengthening program unit. The study/assessment was designed at preparing basic market information and possibility to recognize and underline viable and profitable diversified business sorts that enable to improve and augment the lives and livelihood of the vulnerable and economically impoverished program beneficiaries and to ensure lasting and sustainable economic opportunity.

The economic drives of Gode town encompass petty trade activities, agricultural products and farming, livestock fattening/products and food and non-food items from cross border smuggling.

Many of the interviewed respondents informed that they had literacy skills to the basic Somali scripts and arithmetic calculation and this enabled to accurately record their daily business income.

In terms of livelihood ownership and income changes, of the interviewed respondents depicted significant live changes and enabled the household to cover the basic family needs.

Despite the existence of many stakeholders stationed in Gode town, only few partners provide services to the community residing in Gode town.

The natural and manmade shocks become ordinary in Somali region of Ethiopia-particularly Shebelle zone due to accumulative factors particularly deficit of moisture, recurrent droughts and communal land disputes. Ensuring the sustainability of the vulnerable community livelihoods becomes a critical paramount for the humanitarian development agencies various humanitarian developmental agencies endeavored to develop a lasting and sustainable livelihood framework but the implementation of the framework become very critical due to diverse perceptions and lack of sense of ownership by the end users/beneficiaries.

The livelihoods framework enables a description of local individual household or community assets to be positioned and analyzed against factors which contribute to vulnerability, such as seasonality, shocks and trends. The framework also allows examination of formal and informal policies, institutions and processes which affect the ways in which people are able to protect or develop their assets.

The findings of the study show that the largest numbers (57.8%) of the respondents were female. The highest number of female respondents reflects that they contribute large portion to the household income and female are more productive than male partners in small businesses. 62.2% of the

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interviewed individuals have age range in between 18-43years old, this shows that they are in productive age and capable to operate their daily business activities.

Different livelihood opportunities are practiced in Gode such as petty trade activities, mini shops, butchery, farming, livestock fattening. The profit margin generated from the businesses mainly depends on the amount of the initial startup capital injected to the business activities and individual commitment.

Other important factor that the interviewed respondents reported was the main source of food and its accessibility, majority of respondents informed that they purchase from the local market for thier own earned money and this encourages decreasing the syndrome of dependence of food aid from the humanitarian organizations.

At the same time the findings depicted that the interviewed respondents narrated that they developed household income changes and diversification of the business activities leads to generate more income from different directions, also they adopted a coping strategy during the stress period so as to not lose the seed capital of their business; some of the coping strategies are included-reduce of food consumption and change of diet.

Joining Ayuuto is also another core tips enabling for the household to save some money to the group members of the Ayuuto.

Some of the interviewed individuals claimed the custom authority is an obstacle and hindering to their business since the two main business corridors of Gode town was Wajjele and Mogdisho but the Custom authority is strongly patrolling to the smuggled commodities.

Making the livelihood of the community to be sustainable and lasting needs to follow the sustainable livelihood frame work. The livelihoods framework enables a description of local individual, household or community assets to be positioned and analyzed against factors which contribute to vulnerability, such as seasonality, shocks and trends.

The sustainable livelihoods framework allows both financial and social assets to be examined. Sustainable livelihood principles emphases four types of sustainability: economic, social, institutional and environmental.

Different humanitarian organizations are situated in Gode town but their presence doesn’t mean they extend support to the vulnerable and destitute part of the community. only few organizations provides humanitarian support to the most dire and economically impoverished households residing in Gode town and this doesn’t bring lasting and sustainable economic empowerment but it reliefs the economic pain of the poor households.

1. Introduction

This study was designed to identify feasible and viable business types that supports to the household needs and make self reliant to the family. The main components of the study are summarized as here under. Part one deals with background information, objective of the study and

methodology of the study, Part two talks about socio-economic background of the study area. The third part is about findings of the study. Part four shades light on the concept of sustainable livelihood framework. The 5th part touches on trends of formal and informal sector of Ayuuto/bank system,

while part six deals with livelihoods and food security. Finally, the 7th and 8th parts discuss on stakeholder analysis and recommendations respectively.

BACKGROUND TO THE STUDY AREA

Somali region is one of the nine regions in Ethiopia that locates in the east and south east of the country having one of the largest lands mass in the country. The population of the region is estimated at 5.2 million in2012 (CSA). Livestock is the mainstay of 85% of Somali residents’ income and the vast majority of the region’s population is pastoralist and agro-pastoralist. Traditional systems of land management and resource use have made pastoralists historically resilient to unpredictable climate patterns in the area. More recently, population growth and a changing political and economic landscape have left pastoralist communities increasingly vulnerable to shocks including droughts and food insecurity, which have disproportionately affected the poorest households. These conditions serve as a push factor for an ever-increasing number of pastoralists to move to peri-urban centers, and “drop out” of the pastoralist livelihood system. Pastoralists typically ‘drop out’ when they lose their livestock and when shocks become so frequent and severe in intensity that they cannot recover. A loss of livestock also means a loss of status among pastoralist communities, and increased dissociation from the values and symbols that form the core identity of pastoralist communities.

Shebelle zone is one of the nine zones in the region with a population of 524,064 persons in 2012, according to CSA. Seven out of the nine Woredas of the zone are located on Webi Shebelle River that crosses to Somalia, and the majority of the people own land. Gode woreda is one of the seven Woredas on the river. Livestock products, crop cultivation and small businesses are the factors that drive the economy of the district. Despite the challenging circumstances, positive opportunities exist. The Somali Region does have a growing economy and emerging business sector, especially in large urban centers including Gode. These new businesses require more diverse, financial subsidy, and often non-traditional skill sets. Numerous sorts of business activities are currently exist in Gode town, most of which are supporting poor households who have not enough financial capital to initiate their own business. The most common sorts of businesses are: mini shops, tea shops, vegetable vendors, meat butcher, milk sellers, and collection of fire woods, charcoal production, and donkey carts

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(fetching water and collecting local natural resources building materials from the bush). The aforementioned business sorts do not require huge financial investment during the inception. The economic drives of Gode town encompassed such as petty trade activities, agricultural products and farming, livestock fattening/products and food and non-food items from cross border smuggling.

In Shebelle zone various international and local NGO’s have involved in livelihood development interventions and delivery of improved services targeting vulnerable and disadvantaged communities. Sustainability of projects/programs is the main challenge for the humanitarian and developmental organizations as witnessed by lessons learned. One of the core hindrances is found to be overlapping of the projects and lack of base line information about the socio- economic status of the target community as well as market situations. SOS Children's Villages Ethiopia is a non-profit, non-governmental and non-religious humanitarian organization that has been working in different regions of the country for the better future of orphans and destitute children to make them self-reliant. SOS Children's Villages Ethiopia has been specifically launching family strengthening Programs in its various program locations with the purpose of preventing children from the physical and psycho-emotional devastation that come with lose of parents. The program is endeavoring to improve and enhance the living standard of the program beneficiaries through creation of income generation schemes and developing business related skills so as to ensure long term sustainable and lasting livelihood systems.

Gode Family Strengthening Program is one of the core developmental projects targeting and supporting vulnerable communities residing in Gode town and its outskirts. Different base line survey conducted by SOS children’s village program depicted that most families were unable to fulfill basic needs such as food, shelter, clothing, education and health care for their children eventually leading to family disintegration, thefts and engaging in stressful work. Economic empowerment and provision of seed capital to economically impoverished families is part of the project core activities as a result of which many families changed their economic status and livelihoods. This market study was sponsored by SOS-Children’s Village Program for the purpose of identifying feasible and viable income generating scheme for families and to support families towards building self reliance families through involving viable profitable business activities.

1.1 Purpose and objectives of the Study

The overall objective of this study is to improve the economic self-sufficiency of families to to be able provide acess to direct essential services and developmental needs of their children.

The specific objectives of the study are:

To enable the target families find appropriate ,feasible and sustainable livelihood

solutions To enable Program family beneficiaries engage in income generating activities that lead

to sustainable household income. To enable caregivers/families achieve their own livelihood goal through diversified

Livelihood options To promote families saving culture and habits and cut unnecessary costs.

1.2 Methodology of the Study

In this study mixed research (qualitative and quantitative) had been put in to practice. The instruments employed include questionnaire for household survey, focus group discussion with different groups among the community in the market, interview with key informants in the market, consultations with numerous stakeholders and case studies.

1.3 Sampling Method and instruments of the study

During the study advanced tools and instruments were set up in accordance to the information stipulated in the term of reference of the study. Systematic sampling method was used in this study. Knowledgeable and professional expertise had been consulted and rendered positive feedback so as to enhance the eminence of the tools and for the accuracy and precision of the data and information of the study. Qualified and competent data collectors were recruited and trained in order to collect exact and trustful information from the market.

A systematic sampling method was used in the selection of the respondents to have unbiased selection of respondents, this sampling approach involves random numbers to pick up the unit with which to start on one side of the market and counting and selecting the sixth number/individual.

In accordance to these sample units, a structured questionnaire was distributed to the 45

business individuals who involved diversified business activities and these are categorized based on the economic level such as poor, middle income level and better off. The second sampling unit selected one focus group discussion consisting of 15 individuals from key

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stakeholders, so as to acquire and comprehend the economic disparity between the aforementioned categories.

1.4 Sources of Data

Both primary and secondary data have been used for this study. Semi-structured questionnaires were conducted with 45 business individuals having different income levels namely, poor, middle and better off/wealthy groups. At the sometime, one focus group discussions consisting of 15 individuals have been conducted using semi-structured questionnaire. In addition to this, secondary information sources have been also used for the study.

1.5 Data Collection

Qualified and professional team of seven persons was recruited as enumerators. Before the collection of the data, enumerators were given a training covering with multi portions such as: objective of the study, methodology of the study, How to approach respondents and how to get as much relevant information as possible from interviewers. The overall objective of the short snap training to the enumerators was to enable enumerators collect relevant information for the investigator to respond to the research concern. Data collectors gathered household survey data, while the core research team conducted the focus group discussions, key informant interview as well as consultations with government institutions/organs, NGOs, private sector and other important community members.

Secondary data has been also collected by the core research team of the study through reviewing literatures written with regard to market assessment and household economic analysis in Somali regional state. In this study several case studies were also conducted to specifically draw the vulnerability criteria of households and to analyze the way their livelihoods, financial capital and nature of their business activities are.

1.6 Data Analysis

Statistical packages for social sciences ( SPSS) has been employed for data presentation and organization while other simple statistics like calculation of percentages have been used for the analysis and interpretation of the organized data.

1.7 Limitations of the study

One important limitation in this assessment was inadequate and accurate literature and secondary data in the region in general and the zone in particular due to poor data and information recording system.

2. Socio-economic background of the Study Area 2.1. Overview of Somali Region

Somali region is one of the nine regions in Ethiopia that locates in the east and south east of the country having one of the largest lands mass in the country. The population of the region is estimated at 5.2 million in 2012 (CSA). Livestock is the mainstay (85%) of Somali residents’ income and the vast majority of the region’s population is pastoralist and agro-pastoralist. Traditional systems of land management and resource use have made pastoralists historically resilient to unpredictable climate patterns in the area. More recently, population growth and a changing political and economic landscape have left pastoralist communities increasingly vulnerable to shocks including droughts and food insecurity, which have disproportionately affected the poorest households. These conditions serve as a push factor for an ever- increasing number of pastoralists to move to peri-urban centers, and “drop out” of the pastoralist livelihood system. Pastoralists typically ‘drop out’ when they lose their livestock and when shocks become so frequent and severe in intensity that they cannot recover. A loss of livestock also means a loss of status among pastoralist communities, and increased dissociation from the values and symbols that form the core identity of pastoralist communities.

2.2. Overview of Shebelle Zone The Gode/Shebelle Zone is one of the nine zones of Somali Region. It consists of nine districts with a total population of 524,064 (2012 CSA projection) (291,382 men and 232,686 women). Pastoral and agro-pastoral livelihoods dominate this area with an increasing percentage of people involved in riverine farming. All the woredas of the zone is crossed by the Webi Shebelle River except Denan and Elweyne. About 70% of the population in Kelafe District is riverine and depend on either irrigated or flood-receded crop production. In contrast, Adadle and Gode Districts are dominated by pastoralist and agro-pastoralist livelihoods. About 65% of the population in Adadle are pastoralists, while in Gode about 35% of households are pastoralists. This means that both districts have significant households practising agro- pastoralism with increasing riverine farming. The cyclic nature of drought and its cumulative effects have contributed to weakened coping capacity and increased vulnerability of pastoralists and agro-pastoralists. As a result, livestock and natural resources are hit by another drought before they have recovered from the previous one. This is happening in a setting where social services and infrastructure is poor further exacerbating vulnerability levels. As Gode town is the capital city of the zone and have better economic opportunities than other woredas of the zone it hosts huge number of pastoral and agro pastoral drop out population who have limited means of livelihoods.

2.3. Overview of Gode City Administration

Gode district is located to the Southeast part of Ethiopia at about 1200 Km from Ababa Addis and to the south part of Jijiga (the Regional Capital) at 650 Km. Gode district is found in

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Shebelle zone of Somali Regional State (SRS). Gode town is the principle town of the Gode district and Gode city administration, at the sometime the capital of the Shebelle zone. Gode agro ecologically is one of the deyr receiving zones of the SRS and is a low land. The altitude ranges from 250m-600m above the sea level.

The topography features of Gode district are characterized by plain (80%) and undulating hills (20%). The average annual rainfall ranges from 180-200mm with bi-modal pattern. The main rainy season (Gu) is from April-June while the short rainy season is from October –December (Deyr). The temperature of the district ranges from 22oC-37oC but sometimes in the month of March it goes up to 41oC.

Gode City administration is one of the councils established by the Somali regional state. Gode municipality is divided into six main administrative sections called kebeles (Xaafado). Each of these sections/kebeles is divided into eight sub-sections or sub-kebeles (Laan xaafadeed). The different administrative sections use different figures of population estimation, which is different from the figures of the Central statistical Agency of Ethiopia figures. However the analysis of this study is based on the figures of the CSA of Ethiopia. The population dwelling in Gode municipality is estimated at 43,176.096 (2007, CSA census figure) 56% of the urban population are male where the female population constitutes 44% of the total urban population dwelling in Gode municipality. (2007, CSA).

2.4. Basic Livelihoods

Numerous sources of income or livelihoods are practiced by the interviewed households so as to protect their families’ lives not to be shaken by the food shortages and other calamities. Pastoral and agro pastoral drop out households come across various challenges to the town during their first arrival but the most notable is lack of seed capital and inadequate knowledge and skills of the businesses etc. Different studies undertaken in Somali region of Ethiopia has depicted that multi business activities are practiced in the region such as

• Agricultural practice with different aspects: rain feed farming, flood recession farming

and small scale irrigation. • Petty trading, livestock fattening and mini shops • Large food stocks and construction materials ware stores • Tea shops, meat butcher, fruit and vegetable vendor etc

3. Findings of the Study 3.1. Demographic features of the respondents

As depicted in the table 1. 57.8% of the respondents were female while the remaining 42.2% were male. This indicates that higher number of females involved in business activities and existence of female headed household is higher than the male headed household in terms of business involvement. The figure indicated above shows that women are productive and capable in terms of business activities. In terms of age distribution, 62.2% of the interviewed respondents range from 18-43% while the remaining percentages of 31.1% and 6.7% constitutes the age ranges of greater than 43 and less than 18 years respectively. This depicts that the majority of the individuals engaged in the business activities are in the productive age range.

Table 1 Sex and Age of the Respondents

Sex of respondents Age of respondents

Category Frequency Percentage Category Frequency Percentage

Male 19 42.2 <18 3 6.7

Female

26

57.8

18—43

28

62.2

Total 45 100.0 >43 31.1 31. 1

3.2. Level of literacy and Marital status:

According to the survey, 53.3% of interviewed individuals disclosed that they can read and write Somali language scripts, while 40.0% of them cannot read and write whereas the remaining 6.7% barely read but cannot write Somali. The literacy & numeracy skills contribute a tangible input to their daily business activities and recording the in and out cash and other expenditures. On the other hand, the marital status of the interviewed respondents showed that 57.1% are married while the remaining 14.3% and 14.3% are widowed & single parent. This shows that the majorities of the respondents are married and plays a significant role in the household economic improvement.

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Table2. Literacy level & marital statu

Literacy level of the respondents Marital status of the respondents

Category Frequency Percentage Category Frequency Percentage

Can read & write 24 53.3 Married 31 68.9

Can read only

3

6.7

Divorced

2.2

2. 2

Cannot read & write

18

40.0

Widowed

8

17.8

Total

45

100.0

Single

3

6.7

Total

45

100.0

3:3 Asset ownership In terms of livelihood ownership 57.1% of the respondents informed that they owned small plot

of land with either local hut or corrugated iron sheet house. Such houses do not have adequate

space that accommodates the entire household members indicating the level of the

vulnerability that still exists. The remaining 14.3% depicted that the interviewed households’

owned assets such as Birka water reservoir and donkey carts. In general this analysis

demonstrates that the interviewed households have only meager asset ownership suggesting

large number of impoverished households.

Table 3. Livelihood Ownership/Asset

Asset ownership of the respondents

Category Frequency Percentage

House/land 19 42.2

Birka water reservoir

3

6.7

Donkey c art

9

20.0

Cows

2

4.2

Camels

2

4.2

Others

9

20.0

Total

45

100.0

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3.4 . Alternative livelihoods

According to the survey conducted, 57.1% of the respondents enlightened that they had other alternative livelihood options with which they generate income source for their households. Some of the interviewed household informed the other alternative livelihood is some of the family members are employed from the government sector offices and earns small wages. The remaining 42.9% of the respondents reported that they have not any other sources of alternative livelihoods and this is an indication of large number of household vulnerability and economic impoverishment. Having any other alternative livelihood is an opportunity for the household to meet the basic family needs.

Table 4 Alternative Livelihoods Alternative livelihood of the respondents

Category Frequency Percentage

Yes 25 57.8

No

20

42.2

Total 45 100.0

3.5. Household Income Changes/ Increase

64.4% of our survey respondents notified that they increased and improved household income through various business activities such as fruit & vegetable vendor, butcher, tea shops and

mini shops, and food stores. Such economic empowerment enabled to the care givers to have adequate response to basic needs such as food, health care, clothing and provision of scholastic materials to their children and family. While the remaining 33.3% of the household responded that their household’s income did not improve.

Table 5. Household Income Increase

Household income increase of the respondents

Category Frequency Percentage

Yes 30 64.4

No 15 33.3

Total

45

100.0

Case study-1

Ambaro is a mother of six children and currently resides in Gode town but originally she come from outskirt of Gode where she practiced livestock rearing and pure pastoral way of life. Ambaro came to Gode following the 2000 stressful and catastrophic drought that had overwhelmed the fragile livelihood of the pastoral community. After Ambaro lost all of their livestock she migrated to the town in search of any job opportunity and create new way of life. Soon after her husband Mr. Abdille died due to opportunistic disease.

Mrs Ambaro with her six children started to struggle with their daily life and approached to their close relatives, fortunately Ambaro secured from her close relatives small amount of money and temporary small plot of land for residence. Ambaro has not business background and work experience but has a commitment, courage and dedication to improve the living condition of her household.

The first business type involved by Ambaro was petty trade activities such vegetable vendor, firewood selling and etc.

After three years Amabro afforded to own a plot of land of her own and constructed one local room made up of

corrugated iron sheet and simultaneously constructed a latrine. Ambaro’s long term target was to educate her children so as to support her in the long run. Amabro enrolled three of her children to the government school and provided the scholastic materials.

Ambaro’s dream come true and currently has significantly improved her household income and managed to educate her children. Her elder son Abdi graduated from Gode healthy science college two years before and was recruited in Gode hospital as a clinical nurse. Due to financial capital increase of the household; Ambaro diversified and extended her business. Now Ambaro and her family is living a relax condition and stable life.

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3.6. Main source of food for the Household

According to the survey conducted in the market, 84.4% of the respondents reported that the main source of food consumed by their household is purchased from the local market and the most stable food consumed by the households is cereal food which is mostly found in the local market. While the remaining percents of 8.9%, 2.3% and 2.2% depends on gifts from relatives, food aid and own produce respectively.

Table-6. Main source of food for the household

Main source of food for the respondents

Category Frequency Percentage

Purchase 38 84.4

Food aid 2 2.3

Gifts

4

8.9

Own produce

1

2.2

Total

45

100.0

3.7. Access to Credit

24.4% of the respondents revealed that they have access to credit from various institutions like, SACCOs, MFI, relatives and others and loan or credit may be with short or long term credit also amount differing, pay off period from one institution to another. On the other hand 75.6% which is the highest remaining percentage is indicated that they have no access to loan or credit from anywhere.

Table7. Access to Credit

Access to credit of the respondents

Category Frequency Percentage

Yes 11 24.4

No

34

75.6

Total

45

100.0

3.7. Supply and Demand of the commodities

According to the survey conducted in the market, 42.2 % responded that their commodity supply is largely from cross border trading (neighboring country of Somalia). While 33.3% reported that they get their supply from the local market. And at the same time, the commodity availability from national level is 22.2%. There are two corridors of trading in Gode market from outside perspective, one is from WAJELLE corridor and other is MOGADISHU corridor. This has its own risk as the Ethiopia Custom authority is strictly patrolling the smuggled commodities and if the commodities is captured the custom authority will confiscate the captured assets. This scenario has depressing consequences for the business people. On the other hand, the interviewed respondents informed that 44.4% of commodity demand is stable, while 55.6% of commodity demands is unstable.

Table. 8. Supply and Demands of the commodity

Supply Demands of the commodity

Category

Frequency

Percentage

Category

Frequency

Percentage

Local

15

33.3

Stable

20

44.4

National 10 22.2 Unstable 25 55.6

Cross border 19 42.2

Total 45 100.0 45 100

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3.8. Main source of livelihood/ income for the HHs According to our survey, 24.4% of our respondents informed that their main source of

livelihood/income depends on vegetable vendor, while 20.0% replied that they engaged in mini

shops. This two types of businesses require small startup capital and small material inputs, the

other core factor that the business people first-rated such type of business is its availability

from the local market and out skirts of the town and high demands from the clients/customers.

Table.9. Main source of livelihood/income for the HH at this moment Main source of livelihood/income for the HH at this moment

Category Frequency Percentage Livestock rearing/fattening 1 2.2

Farming 4 8.9

Vegetable vendor 11 24.4

Meat butchery 6 13.3

Cloth sale 4 8.9

Mini tea shop/food café 2 4.4

Mini shop 9 20.0

Daily laborer 1 2.2

Total 45 100.0

Case study-2

Tarik is a mother of seven children her husband died some years before, her children were not in productive age the time her husband died. The household does not owned both fixed and financial assets. Mrs. Tarik approached her close relatives so as to get financial subsidy to her

orphaned children and she obtained small amount of money and decided to join to the market but the financial capital that tarik had on her hand can only run vegetable vendor.

Tarik initiated her business and attracted numerous customers since she had developed good marketing tips that satisfied her clients/customers. She griped and covered the entire family expenses.

Tarik argued vegetable trading is the businesses of low income households and vulnerable groups because such business does not require huge financial support and complicated skills. The demand of such business is high but one of its constraints is during poor markets, vegetable has no long life span and resistance and it spoils easily.

Thanks to our Almighty Allah said TARIK vegetable trading is part of my life and it enabled me to support my family.

3.9. Increase of household income:

80.0% of the respondents replied that the main option to increase and augment household income is diversification of the business as this strategy ensures sustainability and minimizes business risks in case one business is impacted by natural and manmade calamities the other businesses may be safe and sound from the risk or peril. Similarly, business diversification advance financial capital of the business and enhances household income. The remaining respondents portray that the other options to improve household income is to sale their assets(8.9%), joining to traditional finance system/Ayuuto/(6.7%) approaching to micro finance institute(2.2%) or to look for assistance from the relatives (2.2%). The other options for household income increase next to business diversification is joining to traditional finance system/ Ayuuto/ or obtaining loan from the micro finance institute which this is recently implemented in Somali region and Gode where some of the interviewed households informed that they got small loan.

Table.9. Increase of household income

Increase of household income respondents

Category Frequency Percentage

Diversification of business

36

80.0

Look for assistance

3

6.7

Asset sale

4

8.9

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Financial support from MFI 1 2.2

Joint to Ayuuto

1

2.2

Total

45

100.0

4.0. Traditional financing system/Ayuuto/

According to the interviewed households, 53.3% are member of the traditional financing system of Ayuuto, while the remaining 40.0% portrays that they are not part of any saving groups.

Ayuuto is a community or group association that collects a fixed amount of money from each participant on regular basis and then provides a lump sum to one participant on a rotating basis. In such associations, members are often joined together by some commonality such as neighborhood, institutions or work place. The amount of money saved to Ayuuto is in between 20 to 50 ETB in every day and such amount would contribute a lot to the family expenses.

During our survey respondents were asked why they prefer Ayuuto rather to the banking system. Respondents gave different answers to the open-ended questions. Most of the respondents reported that the Ayuuto vis-à-vis the banks, facilitates forced saving by imposing self-discipline on the saver.

One respondent, for example, stated: My monthly income is low. I am ashamed of going to the bank with a small sum of money. Moreover, I procrastinate until I discover that I have no more savings to deposit in the bank. On the other hand, the Ayuuto imposes self-discipline on me.

Other respondents, for instance, stated: Somali community has not a acquaintance about saving money to the banks or elsewhere, at the same time community reliance & trust to the bank is critical issue because they had little confidence also as the bank system is always busy & tiring. On the other hand, money with drawl from the bank is tough, may be you may urgently need your deposit from the bank to utilize urgent household matters but getting immediately your money from the bank is impeding. Ayuuto system is simple for the individuals to obtain money from the Ayuuto members due to his/her urgent request from member individual.

. 4.1 Loan repayment process & constraints

According to our study 73.3% of respondents reported that loan repayment is challenging and stressful business. The remaining 22.2% of the respondents narrated that they were not burdened by the loan repayment. Loan repayment has fixed schedule that shows the payback time and amount of money intended to be repaid to the SACCOs or others.

Some of the respondents informed that the major impediments for loan repayment are associated with the matters like family expense exceeds profit earning, low sale due to poor or slow marketing and high paid rent. Our survey indicated 75.6% of the our respondents replied the chief obstacles is due to high family expense and low profit margin, while 13.3% responded low sale of commodity due to poor and slow marketing.

4.2. Purchasing power parity of the clients/customers

Purchasing power parity is an important feature that expresses community financial capacity to purchase their demanded items in the local market. Our survey illustrated 80.0% of the respondents reported their purchasing power parity is a medium level, this represents that customer/clients are financially capable. But during the dry spells customers purchasing power declines

Table.10. Purchasing power parity of the clients/community

Purchasing power parity of the respondents

Category Frequency Percentage

Low

5

11.1

Medium

36

80.0

High

3

6.7

Total

45

100.

4.3. Rental cost of the business premise or work place

The purpose of this statement was to measure the level of the rental cost of work place of the respondents. According to the table below majority of the respondents (56.6%) revealed that they pay rent to their work place or business premise. This shows that majority of the respondents have burden of paying rental cost on their work place. This has a negative impact to their household income progress. On the other hand, 43.4% of the respondents informed that they didn’t pay rental cost to their work place.

Table.11. rental cost of the business premise or work place

Rental cost of the business premise or work place Category Frequency Percentage

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Yes 25 56.6

No

20

43.4

Total

45

100

4.4. Profit margin of current business

According to the households interviewed, 42.2% responded that the profit margin they generate from their business per month is between 100-500ETB, while the remaining respondents indicated that 31.1% generates 1500-2000ETB, 15% (501-1000ETB) and 6.7% (1000-1500 ETB). The profit margin depends on the initial financial capital you injected your business and market opportunity you had this implies that more increase of initial financial capital enables to generate more income from the business.

Table.12. Profit margin of current business

Profit margin of current business

Category

Frequency

Percentage

100-500

19

42.2

501-1000

7

15.5

1000-1500

5

11

1500-2000

14

31.1

Total

45

100

4.5. Coping strategies adopted by the interviewed households

Occurrence and episodes of both natural and manmade shocks befalls frequently in the Somali region in general and Shebelle zone in particular. During stress periods, households develop a coping strategy to minimize the extents of the risks and vulnerability of the households. The most common coping approach is to either protect consumption or modify consumption. Protecting consumption requires buying or being given food to maintain food intake levels. Modifying consumption includes reducing or diversifying consumption.

According to the interviewed respondent 66.7% believed that the vital option to resist shocks is reducing food consumption, while 22.2% enlightened change in diet is an appropriate approach that will simplify the degree and enormity of the shocks.

Table . A categorization of household coping strategies

Livelihood shocks

Reduce Consumption Change Diet

Purchas e food

Receive food

Reduce Consumption

Diversify Consumption

Reduce consumers

Case study-3:

Halima’s family consists of 10 persons and lives in a TUKUL house made of local materials. This household had small petty trade activity in Gode market and their village. Initially the family was situated in a dreadful and dire condition where Halimo and her husband were not able to feed their children let alone send them to school.

Despite this, the family has systematically developed an approach to deal with the stress period such as drought and the existence of poor marketing. The household adopts two significant strategies that minimize asset lose and diminish of capital. These are reduction of household consumption (i.e. breakfast and dinner) and change of diet (consuming the food that is inexpensive). Unless the household

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adopts such approach, they may come across depletion of both fixed and financial capital due to excessive expenditures of the household. Currently, this household afforded to better feed and cover other family needs from their business such as health, scholastic materials and clothing.

4. Sustainable livelihood frame work

Livelihood thinking dates back to the work of Robert Chambers in the mid-1980s. In realizing that conventional development concepts did not yield the desired effects and that humankind was additionally facing an enormous population pressure, Chambers developed the idea of “Sustainable Livelihoods” with the intention to enhance the efficiency of development cooperation. His concepts constitute the basics for the Sustainable Livelihoods Approach (SLA), as it was developed by the British Department for International Development (DFID). Starting from 1997, DFID integrated the approach in its program for development cooperation.

A livelihood can be classified as sustainable, when it is resilient in the face of external shocks and stresses, when it is not dependent upon external support, when it is able to maintain the long-term productivity of natural resources and when it does not undermine the livelihood options of others.

The natural and manmade shocks become ordinary in Somali region of Ethiopia-particularly Shebelle zone due to accumulative factors particularly deficit of moisture, recurrent droughts and communal land disputes. Ensuring the sustainability of the vulnerable community livelihoods becomes a critical paramount for the humanitarian development agencies. Various humanitarian developmental agencies endeavored to develop a lasting and sustainable livelihood framework but the implementation of the framework become very critical due to diverse perceptions and lack of sense of ownership by the end users/beneficiaries.

The livelihoods framework enables a description of local individual household or community assets to be positioned and analyzed against factors which contribute to vulnerability, such as seasonality, shocks and trends. The framework also allows examination of formal and informal policies, institutions and processes which affect the ways in which people are able to protect or develop their assets. This part of the framework includes sub-national, national, regional and international policies and institutions. From the perspective of defining and responding to poverty, pastoralist communities commonly explain poverty by reference to both their livestock holdings (financial assets) and access to indigenous social networks and support systems (social assets). The sustainable livelihoods framework allows both financial and social assets to be examined. Sustainable livelihood principles emphases four types of sustainability: economic, social, institutional and environmental.

5. Trends of formal& informal sector Bank/Ayuuto

The great bulk of the Ethiopian population makes little or no use of the formal savings and lending institute. In a country where more than 80% of the population lives in rural areas, the few banks and credit associations that are presently operational are limited to urban areas. Moreover, these banks are little used even by the urban population. As per head deposit for the total population in 1985-86 is not more than birr 90. The question now is 'why does the population not effectively use the formal sector?. In the first place, it should be noted that households have a low capacity to save mainly because of the low level of per capita income in the country. In addition, the political and social climate in the country is not sufficiently conducive to savings mobilization (Mauri, 1987, p. 5). In the second place, limited savings mobilization through the informal sector may be traced to two related factors: the inability of the formal financial institutions to attract households and household reluctance to use these institutions. The Ayuuto is based on pre-established social ties. It consists of homogeneous groups: people from the same work place, ethnic background, trade, schooling background or neighborhood. People from all walks of life, ranging from the rural poor to the urban rich, from shoe-shine boys to high Level government officials, participate in the AYUUTO/ IQQUB, and the capital contributions vary according the purpose of the AYUUTO and the economic status of its members (see Baker, 1986, p. 166; Landuber Araya, 1983, p. 64; Comhaire, 1966; Aspen, 1989).

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Why do people prefer Ayuuto to the formal financial sector? According to Arnaldo Mauri (1987), the major reasons are the following:

• The intimate integration between the financial services offered by the Ayuuto and the strengthening of the ties of solidarity and friendship in the group

• The forced savings of a contractual nature; • The provision of credit services particularly suited to the needs of the participants and

the flexibility and adaptability of the Ayuuto to various situations and needs; • The low risk of default; • The low or practically non-existent costs of administration and transactions; • The absence of minimum investment threshold;

6. Livelihoods & Food security

6.1. Sources of Income

Different sources of income or livelihoods are practiced by the interviewed households in our study. These were categorized in to three income level such as low income, middle income and better-off/wealthy group. Diversified livelihood or income sources were practiced by the interviewed household including vegetable vendor, mini tea shop, mini food café, mini shops, meat butchery, and livestock fattening and farming. The current income sources of the households and their sources of income 5 years or half a decade ago have been compared. The most important livelihood or source of income for the households is petty trade activities and livestock fattening and farming. Majority of the interviewed households responded that the most dominant business activities were petty trading and the core objective preferred such business type is due to market demands and small startup capital requirements at the same time don’t need high level skills and experience.

On the other hand, only few households that were interviewed informed that other sources of income is earning low wages from the government offices as one household in twenty interviewed has employment as a source of income or livelihood. In comparison between the current and previous livelihoods of the households, there is a total shift in some of the households from their previous income sources or livelihoods activities.

Moreover, only few interviewed households admitted that the other source of income is receiving remittances from their family members or relatives residing outside of Gode. It is also observed that gifts/social support is important for several households particularly in time of food shortages and emergencies. In contrasting current living standard of the interviewed households and a decade ago reveals a gigantic household economic gap.

6.2. Sources of Food

This analysis portrays that significant portion of the households handled to feed their family through purchasing from the local market. The interviewed household regarded the food aid is another alternative source of food in times of disasters and food emergency. Household dependence on food aid becomes unreliable and uncertain also the majority of the respondents argued such food aid creates dependence syndrome.

According to SC-UK and DPPB (2001), social support systems exist in the Somali region in general and in Gode areas in particular, unless is disrupted by conflict or drought. The most common social supports reported include Zako (religious obligation for the poor), QAADHAAN (community contributions) to poor families or individuals affected by other calamities. Poor families sometimes my send some of their children to live with their wealthier relatives in the urban centers or they may get milking animals from their wealthier relatives.

In line with this report, our study has found that social supports and gifts still exist in the community. Although some of the interviewed households has informed that they receive some supports or gifts from their relatives and other neighboring wealthier groups, but the majority of the people argued that the extent and frequency of paying gifts and social supports is not as it was years ago. This was attributed to the higher inflations and increase in livelihoods costs. Such problems have caused the reduction in purchasing power of many households and decrease the social support among the community.

Summary of prevalent IGAs &Capital required

S/ n

Type of business Initial capital Input supply (cash estimation)

Market Demands

Average income(per day in birr)

Remarks

1 Vegetable vendor 1000-1200 1500-2000 Medium 40-50

2 Mini shop 8,000-10,000 45,000-6000 Medium 50-70

3 butchery 1200-1300 250-300 Medium 45-60

4 Mini tea shop 1000-1300 1200-1800 Medium 70-80

5 Cloth seller 15,000- 25,000

500-1000 Medium 150-250

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6 Electronic &Cosmetics shop

30,000- 60,000

5000-10,000 High 100-150

7 Livestock fattening 15,000- 25,000

3000-5000 Medium 30% profit per sale

8 Farming( cereal crop) 6000-8000 20,000 Medium 100% profit per season

9 Farming (cash crop- sesame oil or onion )

20,000- 25,000

20,000-30,000 High 150% per season

10 Large food whole seller stores

15,000 300,000- 600,000

High

11 Gum &incense seller 5000 10,000-15,000 Medium

7. Stakeholders Analysis

This section reviews the potential partners and stakeholders who provide services to the community in Gode town. The type of services delivered by the different organizations will be presented in this section.

7.1. Partners operating in Gode town

As part of the country wide development, various international and local NGOs and UN agencies are situated in Gode town, the administrative centre of Shebelle zone. The international NGOs which have a presence within Gode town included: Save the Children International (SCI), CHF, ADRA, MERLIN, JICA, EHCC and SOS Children’s village Ethiopia. The prominent local NGO included OWDA, DAADO, WASDA and ADHORN. UN agencies that have a presence in Gode town are WFP, UNICEF, FOA and OCHA.

The presence with international, local NGO’s and UN agencies does not mean all of them are

supporting and delivering service to the community residing in Gode town. Most of them are rendering service to outside of Gode town, since Gode town is the administrative centre of Shebelle zone and have better facilitates that attracts humanitarian organizations.

However, the international NGO’s and UN agencies providing both developmental and emergency service to the community residing in Gode town include Gode SOSCVP, SCI, MERLIN, CHF, WFP, UNICEF, and UNOCHA.

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7.2. Service Delivery partners Analysis

As we have discussed above, humanitarian developmental organizations are based in Gode town but their presence does not mean they render better services to the destitute and vulnerable community dwelling in Gode town. Gode become one of the four towns established city administration council in Somali region. The structural of city administration council attributed a new developmental agency and better service delivery to the vulnerable and unskilled community.

7.2.1. Micro small enterprise development agency

Micro small enterprise and development agency is one of the developmental offices of the city administration council; this office has a consent to extend both financial and skill development support to the most dire and vulnerable part of the community residing in Gode town. Since the establishment of this office multi dimensional developmental activity has been undertaken in Gode town, some of the vital milestones implemented so far were: Provision of market driven skills to the vulnerable, economically marginalized and excluded households. Rendering seed capital to the disadvantaged women groups and organizing as cooperatives.

Moreover, micro small enterprise development has in some circumstances, contributed positively to women's empowerment and helped extremely poor women survive economic crises in the short term. However, the coverage and financial subsidy intended to the poor household is limited and not sufficient to initiate good business activities.

7.2.2. International NGO’s & UN agency

A number of international NGOs and UN agencies have permanent office and developmental projects targeting to the economically marginalized and disadvantaged households residing in Gode town. SCI has been operational in Shebelle Zone since 2006. SC’s current programming in the zone works to increase resilience through innovative approaches and emphasizes activities that build diversification of asset bases in food insecure households. The program focuses on immediate economic opportunities and the development of high impact agriculture and non- agricultural markets that aim to attract private sector investment and stimulate local economic growth.

This project will focus on increasing income generation of organised groups and promoting access to markets. The current phase of the project is focusing on supporting Income Generation Groups (IGGs) with training, organisation and start up capital. The project is also supporting the formation of Savings and Credit Cooperatives (SACCOs) by training in business

planning and management. This will provide income through an injection of cash, which is necessary to provide impoverished households with an immediate source of income to meet basic needs and/or other essential short term and long term needs while helping them to improve/rebuild communal assets. Likewise, the project established and organized milk collection & marketing women cooperatives. Milk improvement for milk producers has a significant implication in enhancing competitiveness. Un-hygienic practices and climatic factors such as the hot-climate, for example, often cause milk spoilage. As a result of poor hygiene and milk preservation, the shelf life of fresh milk is about 24 hours. The milk collection and marketing group in Gode estimate their daily wastage for about 25% of their daily milk collection. This significantly affects their daily income and earnings. Milk handling between the production and milk collection centers can also be a source of contamination through unclean utensils, poor handling and hygiene and exposure to the sun heat.

Community Habitat Fund (CHF) is an international NGO that had a presence in Gode town since 2006. The organization had undertaken both emergency and developmental project targeting to the vulnerable community dwelling in Gode town, formation of women income generation group and construction of market place for the lower income women groups who has petty businesses in the town. Currently, the organization provided to one of the targeted women group a machine that produce soap and have extended relevant training and skills regarding about how to make the soap.

World food program (WFP) provides relief food to the needy people in the Gode town. It also supports Target supplementary feeding (TSF) in the rural schools particularly for female students in order to encourage for school enrollment and fill the gender disparity in education.

United Nations children’s fund (UNICEF) has also a program supporting to the destitute and dire households residing in Shebelle zone in general and Gode town in particular, the two most important activities are health and education through partnering with local government partners.

8. Recommendations Recent years episodes of natural and manmade shocks become common, reliance of the households on one single source of livelihoods accelerates the vulnerability of the poor households in Gode town. Identification of many livelihood options in the town is a promising opportunity for improving and diversifying the livelihoods of the vulnerable households. Therefore, in order to improve and diversify the livelihood and sources of income of the households, the following have been recommended based on the assessment.

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• Encouraging households to develop and adopt habit and culture of saving. • Diversification of businesses is a vital factor that paves the way & ensures the

sustainability of businesses. • Increments and scaling up of the seed capital injected to cooperatives or SAACOs. • Supporting the profitable small businesses like extending the existing mini-shops,

vegetable vendor, butchery and milk selling, tea shops, cash crop farming and food selling. The demand for such services in many parts of the town is very high.

• Provision of short term literacy &numeracy skills to the SACCOs members in order to have knowledge for recording and calculating in & out cash.

• Encouraging commercial farming including, onion and forage crops as well as livestock fattening since their demands is very high in Gode town.

• Encouraging the business individuals to have trade licenses for their businesses. By proposing alternative livelihoods opportunities and promoting improved access to markets. .

References

• Save the Children UK (SC-UK), DPPB and partners (2002) HEA Baseline Study: Shebelle Riverine Livelihood Zone, Jijiga: Save the Children UK

• Feysal Sheik Abdulahi Feasibility study of Gode FSP

• CSA (Central Statistical Agency), 2007. Population Estimates of Ethiopia. Central Statistical Authority of Ethiopian. Addis Ababa, Ethiopia.

• Arnaldo Mauri (1987),the preference of formal and informal saving system of the business • DFID integrated the approach (1997) of sustainable livelihood framework approach

• Devereux, S., 2006. IDS research report 57: Vulnerable Livelihoods in Somali region, Ethiopia.

Institute of Development Studies of university of Sussex, Briton, UK.

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1: Study Tools/Instruments

Questionnaire/interview form: HOUSEHOLD REPRESENTATIVE

1: GENERAL

1.1 Date 1.3 Kebele

1.2 Woreda 1.4 Sex of respondent Male

Female

1.5. Age of respondent 1. Less than 18

2. 18-43

3. >43

1.6 Level of literacy 1.Can read and Write

2.Only can read

3. Cannot read and write

1.6 Marital status 1. Married

2. Divorced

3. Widowed

4. Single

2: INFORMED CONSENT

The interviewer should read this aloud.

Hello. My name is and I work with Shebelle Sustainable Development Consultancy Company. Which is a national consulting company conducting Market Assessment for SOS-Gode FSP. Participation in the study is voluntary and you are free to decline to answer any or all questions. The results will be kept confidential. This study usually takes minutes to complete.

2.1 Will you participate in this survey?

…….…………………………………………...Yes ………………………………………………….No

3. BACKGROUND INFORMATION

3.1. How long have you lived in Gode town? 0-5 years 6-10 years ≥ 10 years

3.2. Where did you live before?

1. Gode Woreda/City council

2. Outside of Gode Woreda/City council

3.3. What are the main reasons you left your area of origin? P lease rank in order of importance

(1) Searching better job (2) Relative Visit (3) Accompanied with family (4) Married and separated from family (5) Drought (6) Conflict (7) Others

3.4. HOUSEHOLD SIZE AND COMPOSITION

Number of people in HH living/ eating at home daily (include extra dependents) and indicate by gender

Total:

Male:

Female:

Number of children at school (boys / girls)

Total:

Boys:

Girls:

Number of children below 18 years of age

3.5. Who is the bread winner of the household? Please circle

1. Father 2. Mother 3. Grandmother/grand father

4. Sibling 5. Relatives

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3.6. What were your sources of income before you involved in Income Generating activities?

1. Livestock rearing and fattening 2. Farming

3. Daily Labor 4. Petty trade activities 5. Others (Specify

4. LIVELIHOOD Ownership

1. House/land, 2. Birka /water reservoir, 3. Donkey cart, 4. Cows, 5. Shoats

6. Camel, 7. Others

4.1. What are the main livelihood/income sources/activities for the household at this moment?

1. Livestock rearing or fattening 2. Farming 3. Vegetable Vendor

4. Meat Butcher 5. Cloth sale 6. Small Tea and Food café

7. Mini-shop 8. Daily Labor 9. Others specify -----------

4.2. Would you describe the capital requirement of each IGA

Type of IGA Financial requirement for each specific type of business Remarks Initial investment

Items/supply input purchase

Issuance of License

Others Total

Livestock rearing or fattening

Farming Meat Butcher Vegetable Vendor Cloth sale Small tea and Food café Mini-shop Livestock rearing or fattening

Farming Meat Butchery Others specify -----------

4.3. How long have you been in the market/business?

1. Less than 1 year

2. 2-3 years

3. 3-5 years

4. More than five

4.4. Do you have other alternative livelihoods rather than for your current one?

1. Yes

2. No

4.5. What do you do in order to increase your household’s income? Please rank in order of importance

1. Diversify my business activities

2. Look for assistance

3. Asset sale

4. Gifts from relatives or

5. Financial Support from MFI

6. Join to Ayuto

4.6. Are there any livelihoods activities you think can improve your household income, but not involved?

1. Yes 2. No

4.7.1. If yes what type? Why?

4.8. What type of support would help you to strengthen your current business activities/livelihoods?

1. Increase of Loan amount from the cooperative 2. Provision of Business related skills 3. Linking to MFI 4. Other (Specify):-

4.9. What is the main source of food for your household? Please rank in order of importance

Purchase

Food aid

Gifts

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Own produce

4.10. What is the stable food consumed by your household?

1. Cereal-local products

2. Livestock products (meat, milk)

3. Imported food

4.11. How many times does your household consume food daily?

1. Once 2. Twice Three times

4.12. Is the households’ food consumption the same throughout the year?

Yes No

4.13. What coping strategies do your household use during food shortages/stress period? Please circle all that apply

1. Reduction in food consumption

2. Change in diet composition

3. Others:

5. ACCESS TO CREDIT

5.1. Do you get access for loan?

Yes No if answer is No skip to Q 5.3

5.2. If yes from where and whom do you borrow and get loans?

Banks

Relatives

Credit and saving cooperatives

MFI

Other specify:

5.3. What is average level of loans received? And how is this paid off?

1. 500-3000 birr

2. 3001-5500 birr

3. More than 5500 birr

5.4 Is it a challenging for your business during the loan repayment?

Yes No

5.5 If your answer is yes, what are the main causes?

1. Family expense exceeds profit earnings

2. Low sale due to slow marketing

3. High paid rent

4. Others (Specify):

5.6. Do you bring collateral for receiving loan?

1. Yes 2. No

5.7.1. If yes, what type of collateral? Enumerator please Probe your best

--------------------------------------------------------------------------------------------- 6. Availability, Supply and Demands

6.1 How is the availability of purchase commodities?

1. Stable 2. Unstable

6.2 Where do you get your supply?

1. Locally 2. Nationally 3. Cross border trade

6.3. If your supply is cross border trade, then, is it like smuggle?

1. Yes 2, No

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6.4. How is the demand of your products?

1. Low 2. Medium 3. High

6.5. How is the commodity inflation rate in the market?

1. Stable 2. Unstable

6.6. How is the customers/wider community purchasing power parity?

1. Low 2. Medium 3. High

6.7. Which of the following season is the highest period of the availability of commodity?

1. Summer

2. Winter

3. Spring

4. Autumn

7. ASSISTANCE

7.1. Did your household receive any aid/support?

1. Yes 2. No

7.2. If yes what type? From whom did you receive?

S/N Type of service Service provider

GOs NGOs UN

1 Relief food

2 Health services

3 Water

4 Agricultural input

5 Education

6 NFI

7 Other: specify

7.3. What type of aid/support would help you strengthen your current business activities/livelihoods?

Increase of Loan amount from the cooperative

Provision of Business related skills

Linking to other MFIs

Other (Specify):

7.4. Comments (to be completed by the enumerator)

Please add any other comments about the interview that you feel are relevant

8. Market Analysis

8.1. How is the market competition?

1. Low 2. Medium 3. High

8.2. Does your current business have access to the capital required?

1. Yes 2. No

8.3. If your answer is YES, please indicate the capital required?

8.4. Does your business require skills, Experience and knowledge?

1. Yes 2. No

8.5. If your answer is yes, please elaborate?

8.6. How much it cost to transport your goods to where people will buy them?

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1. Fair 2. Not Fair

8.7. How much profit you generate from your business per month?

1. 500-1000 2. 1000-1500 3.1500-2000 4.above 2000

8.8. Do you allocate money for loss recovering, if risks happiness?

1. Yes 2. No

8.9. If your answer is YES, how much you allocate for loss recovering

9.0. Do you have/ practice a business plan for your business?

1. Yes 2. No

9.1. If your answer is YES what type, please elaborate

9.2. What other risks/constraints are possible to your business?

9.3 Do you pay rent to your business premise?

1. Yes 2. No

9.4. If your answer is yes, how much you pay rental premise?

1. 100-500 birr 2. 501-1000 birr 3. More than 1000birr

9.5. How much startup capital you initiated for your current business?

1. Below 2000

2. 2000-4000ETB

3. 5000-7000ETB

4. above 8000ETB

9.6. How do you manage the income you generate from the business?

1. Household consumption/subsistence only

2. Saving, consumption and other HH needs

3. Saving only

4. Others

9.7. Do you perceive any household income changes since you started your business?

1. Yes 2. No

9.8. If your answer is YES, explain it the changes

9.9.Are you member of any traditional financial saving group/AYUUTO

1Yes2. No

10.If yes how much money do you save daily?

10-20 ETB per day

20-30 ETB per day

40-50 ETB per day

Above 50 ETB per day

10.1. What do you do your saving in the AYUTO?

1. Use family house materials 2. Expand/initiate business 3. Pay debt 4. Other

10.2. Does your business support the entire family expenses on regular basis?

Yes No

10.3. If your answer is yes, how much it contributes your business to the family needs?

10.4. How is the profit margin of your current business?

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Good

Fair

Bad

10.5. How is the market forces based on (D and S)

1. Client/customer based 2. Tribal based 3. Neighborhood based 4. Others 9. Policy

9.1. Are there government controlled commodity purchase or sales prices?

Yes No 9.2. Are there licensing requirements or fees for engaging in trade? Yes No 9.3. Do you pay tax to the government? Yes No

9.4. If your answer is Yes, how much, its daily, monthly or yearly based, please elaborate 9.5. Does your business have license from the local authority

1. Yes , 2. No