LIVELIHOODS

A meaningful and sustainable income is the cornerstone of success for families struggling to rise above poverty.

Family Care helps families develop multiple sources of income from business and farming, building momentum toward financial independence.

HOW WE SUPPORT FAMILIES IN
LIVELIHOODS

BUSINESS TRAINING INSPIRED BY THE
STREET BUSINESS SCHOOL APPROACH

The social work team implements a micro- entrepreneurship training curriculum. This trains families on simple and clear methods to conduct market research, plan and manage a business, and invest for growth.

Meanwhile, the agriculture team organizes field trips for seeing and learning about successful farm business ventures.

CAPITAL BOOSTS TO SCALE-UP MICRO-VENTURES AND GROW INCOMES

Families “start small” on their own to prove a business concept. Then, ventures showing commitment and promise benefit from capital boosts through flexible Family Care budgets.

UKR's mantra for business is start small. Families begin where they can - such a a grocery stock worth only $10 - and after a business is proven, Family Care will boost it.

FAMILIES FOCUS ON DEVELOPING MULTIPLE LIVELIHOODS FOR ECONOMIC RESILILIENCE

In an unstable economy, one source of income is not enough. Things can turn sour, and having all wggs in one basket is never good.

That's why UKR works with families to develop multiple sources of income. With funds from non-farm business, and also from both crop and animal farming, families are in a better position to weather unforeseen challenges.

TRADITIONAL SAVINGS & LOAN GROUPS THAT HELP FAMILIES MEET THEIR GOALS

UKR families are encouraged to save for both investment and emergencies. The first step is a piggy bank to save for gaols; it's old fashioned but it works.

UKR families also engage in financial empowerment through their own village-based savings and loan groups.

The challenge

Kenya has 28 million adults and 3 million formal workers. The other 25 million get by through day labor, other under-the-table work, and self-employment through small business. In the village, day labor is usually on farms, and it's both inconsistent and the lowest-paying work there is, often less than $2/day.

The low wages from work in day labor presents a hard choice for parents, as the money is rarely enough to provide both food and school fees. And when someone is sick, the choices are harder. Living this way can usher in despondency and depression. Those heading families keep it together through a parent's instinct to do whatever is needed to provide for their children, and usually a very deep faith, too.

Small business remains as one of the best opportunities. But for those lacing exposure - some having only been to bigger towns for a hospital - creative ideas may be lacking.

GDP per capita in Kenya is about $2,500/year, and for the village, that average is skewed by urban wealth in Nairobi. In the village, it's far less. This is similar to how America's $86,000/year average isn't at all representative of our struggling rural areas.

With so little cashflow in western Kenyan villages, most customers aren't eager to experiment. Vendors in these rural markets mostly sell low-margin, everyday goods. Food staples, being essential to even those making tough choices, move best. But there is high competition, and business isn't easy.

Still, there's a large potential customer base in these dense rural regions, and with the right niche, good money can be made. For those living furthest from market centers, agricultural ventures may present the best opportunities.

CHALLENGES:

No prior business experience, or no prior success
Lack of knowledge - markets, margins, records, growth, etc.
Lack of capital - loans unavailable or not without oppressive interest
Extremely limited local purchasing power - can't easily sell juice or treats or clothes to people who barely have money to buy tomatoes and onions for tonight's dinner
Costly transportation to reach larger markets with more customers (about $2 to $4 for a motorcycle taxi, roundtrip, for most UKR families)

Common strengths that families can leverage

Despite plenty of challenges, there are also a number of assets or strengths that each family can turn to as they seek higher income through small business. These strengths may include:

Time - when there's essentially no paid work available (and depending on the farming season), many people have time to try new things
Hunger for any opportunity to make a better life - 'and a strong willingness to get hands dirty because 'kazi ni kazi' (work is work).
Entrepreneurial culture - 80% of Kenyan adults don't have formal sector jobs; many run small businesses, 'entrepreneurs by force' , alone or as well as other things like casual labor
Agriculture is an investment opportunity for most, and it can be done alongside non-farm business; for example farm animals can provide income, and as they mature and multiply they act as a growing investment (and also an emergency reserve)
Some people are natural entrepreneurs when their potential is unlocked. Others are not so business oriented, and for some families we work future profits lie largely in farming

Our holistic approach to this complex problem

Some new families, with ready skills and plans, have leapt at the chance to use their strengths. Others dream big, but start small.

The Family Care program focuses on guiding families to develop multiple sources of livelihood. This grows their resilience to withstand unforeseen challenges. Staff use an approach inspired by Street Business School to train about market opportunities and business planning & operation.

For parents in Family Care, a successful livelihoods combination usually includes agriculture projects and other non-farm business ventures.

Meanwhile, for the next generation, our university and vocational education scholarships under the Education Guiding Star equip youth with skills for employment or self-employment