How to create sustainable livelihoods? We ask social entrepreneurs.
Now more than ever, we need employment that provides dignity and stability in times of change.
This research, led by Ashoka, was funded by the generosity of Target Foundation
Living in a Torajanese village in Indonesia, banker-turned-advocate Dinny Jusuf noticed the community coming apart and traditions dying out. As elder women passed away, the community’s weaving tradition was disappearing with them. Meanwhile, younger women moved overseas, usually to earn income as nannies in Singapore and Malaysia.
As young women entered these risky, often abusive situations, their communities at home suffered. Dinny wondered: How could women obtain a sustainable livelihood that allowed them to live with their children, support their families, escape exploitation, and embrace their cultural heritage?
In 2019, Ashoka partnered with Target Foundation to report how 67 social entrepreneurs like Dinny across South Asia, South East Asia, and Central America are creating sustainable livelihoods — and what we can learn from them. Today, as the COVID-19 pandemic deeply impacts the economy, we’re looking to social entrepreneurs to help us shape the future of employment.
What are sustainable livelihoods?
Sustainable livelihoods offer a stable, dignifying means of living, even in times of change. They focus on people and their potential, including their capabilities, connections, and resources. To create sustainable livelihoods in Indonesian villages, Dinny turned to tradition: the art of weaving, which draws upon the creativity and community among village women.
The community did not have a market for their cloth, so Dinny created one — first by selling it in Jakarta, later by creating the brand Toraja Melo (“Beautiful Toraja”). Together they are seeking to change the pattern of outward migration. Like other social entrepreneurs we interviewed, she’s creating opportunities based on the strengths and skills within the community.
Sustainable livelihoods [provide] opportunities for career progression and a future that is not contractual. It promotes stability and dignity. It is the kind of path where individuals are able to own assets and break the cycle of poverty.” — Ashoka Fellow Gayatri Jolly, Master G, India
Instead of focusing solely on income, the sustainable livelihoods approach — introduced by Robert Chambers in the mid-1980s — provides a fuller understanding of how people can make a living in the long-term.
To be truly “sustainable,” a livelihood needs to not just be economically sustainable, but ecologically and socially sustainable. Truly sustainable livelihoods honor the importance of human relationships. They do not exploit natural resources. And they contribute to long-term community growth.
Overcoming barriers to creating sustainable livelihoods
Access to Capital
Capital comes in many forms. Some communities struggle with a lack of consistent access to human capital — usually due to cyclical employment and outward migration.
Limited natural capital, such as access to quality seeds and soil or clean water, can also be challenge. And without social capital — including strong relationships and the ability to gather together — entrepreneurs can’t leverage strengths of the community.
Entrepreneurs across all three regions identified limited financial capital as the major barrier. To address financial challenges, social entrepreneurs in Indonesia take advantage of crowdfunding, grants from donors and competitions.
In Central America, some social entrepreneurs have created a shared-risk investment fund, giving small scale farmers access to loans with better interest rates and the technical and social capital to access international markets. Social lenders can back these farmers by investing in the shared risk fund.
Currently, as funders address immediate needs during the COVID-19 crisis, fewer funds are flowing towards sustainable livelihoods.
Access to Markets
When they are unable to access larger markets, social entrepreneurs are more likely to be exploited. To reach national and international markets, social entrepreneurs need the right know-how, infrastructure, and corporate partners. Ashoka Fellow Mayura Balasubramaniam, founder of Craftizen in India, explains the struggle she faces in the handicrafts industry:
“The crafts and artisan sector is largely informal and hence entrepreneurs cannot get access to markets. They are left to be exploited often by middlemen, which prevents them from benefiting fully from the economic incentives of the labor that they represent.”
Many social entrepreneurs reported that they struggle to compete with international brands because there are not policies in place to protect small businesses, and some must over rely on the government to enable business growth.
Social entrepreneurs in South Asia are taking on larger markets through teamwork. With their collective entrepreneurial spirit — and greater bargaining power — they’re changing the value chain. As the producers or manufacturers become the distributors and suppliers, they bypass mid-level corruption.
In Central America and Mexico, where social entrepreneurs struggle to compete against big brands, some are educating consumers about the benefits of purchasing from a sustainable social enterprise. The Value to the Farmer campaign, for instance, helps to show consumers the contributions of Mexico’s local farmers.
Preexisting beliefs
Entrepreneurs frequently said that cultural beliefs — such as superstitions and resistance to new technology — can prevent their work from taking root in the community. They’re working to maintain tradition while changing community mindsets to overcome these barriers.
The trend manifests differently across regions. In India, for example, entrepreneurs say “dignity” is a key factor in their work. Certain jobs — like working in recycling — are seen as inferior and undignified. Ashoka Fellow Matthew Jose, the founder of Paperman, is reversing this trend, working to bring dignity to trash pickers’ lives.
In Indonesia, social entrepreneurs have seen new ideas become widely adopted by empowering local communities to take ownership. For example, Stepanus Djuweng of Institute of Dayakology hosted community workshops, where the Dayak people learned to confront outsiders’ stereotypes of their culture, and to appreciate the traditional strengths and resources within their community. Working through three local, indigenous, private nonprofit organizations, Stepanus is helping build the community’s economic self-reliance.
A future powered by sustainable livelihoods
The COVID-19 pandemic has upended lives and livelihoods worldwide. As we look to the future, social entrepreneurs offer hard-earned wisdom for supporting the wellbeing of the world’s workforce. We’re already seeing these entrepreneurs creatively respond to crisis, working to develop economic resiliency around the globe.
Social entrepreneurs are mobilizing community members, collaborating with government and corporate partners, and teaming up with one another to create lasting change. They’re putting forward a vision grounded in the power of local communities, where everyone has a role to play.
