Livelihoods Management Programme | Capsule 2 | Introducing Livelihoods Tools |

Livelihoods Management Programme

(an e-course by Akshara Network)

Capsule 2

Introducing
Livelihoods Tools

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 Livelihoods Management Programme| Capsule 2 | Introducing Livelihoods Tools |

Introducing Livelihoods Tools

I. Social Map: (Village Level)
Example Social Map:

Social map
 Total population (women and men ratio, demographic details) and families
 Social composition (caste groups) of a village
 Poor households and characteristics associated with poverty
 Ownership of assets
 Occupations of the households
 Educational level and skills in various households
 Housing pattern of various castes (types of houses)
 Number of different livestock
 Migrant population
 Number of vulnerable persons like single women, old age persons, persons with disabilities, attached labor
etc.
 Access to various government schemes such as PDS, pensions, housing, loans, well-being status, etc.
 Membership in various formal and informal institutions
 Leadership in the village
 Families that faced hardships in recent past and the reasons for hardship etc.
 Infrastructure/Services analysis
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 Literacy rate: In literacy 18 and above should count

 Each detail should be in social map
 Entire village must come in social map
# Particulars
1 No. of Families
OC
BC
Minority
SC
ST
Others
2 No. of Households
3 Population
Males
Females
Children

0 to 5
6 to 10
11 to 15
Single Women
Literacy Details
Migration - approx no.
Physically Challenged Per-
sons
(Mention Details)
Child Labor
Orphans
Other information if any::
4 POP / BPL Data
POP
POOR
BPL
5 Housing Particulars
Pucca Houses
Kuccha Houses
RCC Houses
Huts
Others
6 Livestock
Cows & Buffaloes
Bullocks
Calves
Sheep
Goats
Poultry Birds
Note:

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7 Others (Infrastructure)
Panchayath Office
PHC
Hospitals
Veterinary Clinic
School Building
Temples
Church
Masjid
Community Halls
Post Office / Accessibility
Library
Bus Facility
Bus shelter
Telephone Facility (Y /N)
STDs
Cement Roads
Water Tank
Public Taps
Private Taps
Wells
Hand Pumps
Wine shop
Cable connection
Houses with cable connection
PDS
White Card holders
Pink Card Holders
Anthyodhaya Card Holders
Public Toilets
Private Toilets
Pensioners
Old age
Widows
8 Institutional Aspects
Cooperatives
SHGs
VO
Youth Clubs
Rhythu Mithras
Working NGOs
Others if any:
Institutional Aspects:

1 b. Indicate the Gaps and significant changes occurred in social systems / practices in recent past From SO-
CIAL MAP

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2. Resource Map: (Village Level)

# Particulars Acres / Units

1 Total Land (in acres)
Dry land
Wet land
Waste land
Forest land
Temple land
Important Crops with no. of
2
Acres
Ground Nut
Onion
Sunflower
Cotton
Mirchi
Vegetable and Others
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3 Type of the Soil

4 Natural Resources

Rivers / Lakes / Ponds

Mountains / Rocks

Forests

CPRs

Open Wells

Bore Wells

5 CPRs

1 b. Indicate the Gaps and significant changes occurred in cropping pattern / practices in recent past From RE-
SOURCE MAP

Change in means of livelihood:

Contamination of water:

Map the Khareef and Rabhi crops

 Extent of natural resources present, used and issues related to access.
 Distribution of resources by type (As in case of land by type of soil, irrigation sources, crops grown. In
case of forests products by type of produce available etc.)
 Seasonality of resource use
 Changes in resource use over the year
 Distribution of ownership and access to the resources
 Common resources such as temple lands, trees, tanks
 Changes in relative proportion of resources owned by different caste/tribal groups
 Relationship between ownership of land and its use
 Investments made to improve and maintain resources and source of such investments
 Risk faced and risk mitigation planning
 Resources not in use anymore and the reason behind it
 Past efforts made to reuse these resources
 Rules related to accessing the common resources
 Institutions in place for managing the resources
 Seasonal variation and changes in resource usage

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3. Livelihoods Mapping (Village Level)

Name of the Liveli-
Dependent Families Season Days Income Required Support to enhance this Livelihood
hood

Secondary / Kind of Quality Ease of

Primary Others Support Availability

 List of livelihoods classified as a) being taken up by large number of people b) being taken by small number
of people c) recently introduced in village d) others.
 Activity based information
 No. of households engaged in the activity
 No. of households for which the activity is primary livelihood
 Seasonality of the activity
 Number of days of employment provided by activity
 Income range
 It’s importance for village
 Complementary and supplementary livelihood activities
 Minor livelihoods

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4. Income and Expenditure Statement (3 Different Types of Poor Families)

Name of the head of the family:

Number of family members:
Name of the village:
District:
Income and expenditure is calculated for a year.

Income and Expenditure Statement

Income

S.No Item list Description Amount

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
Expenditure

S.No Item Description Amount

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total

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5. Traded-in and Traded-out for a village (Village Level)

Name of the Cluster:
Name of the District:
Traded in and out is calculated for an year taking average income and expenditure for all the families.
Traded out is always more than traded in or cash in is always is more than cash out
 Items/Services purchased in the village(mentioning number of households)
 Items/Services sold out of the village(mentioning number of households)
 Wage work bringing money in the village
 Wage work taking money out of the village

Trade-in and Trade-out

Trade-out
S.No Item list Description Amount
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

16

17

18

19

20

21

Total

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Trade-In
S. No Item Description Amount
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

21

22

23

24

25

26

Total

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6. 24 Hours of Work Analysis (3 Different Types of Poor Families)

In a day list all the activities done by men and women

Time Woman Man

………. – 7.00 a.m

List of Works 1 1
2 2
3 3
4 4
5 5

7.00 – 10.00

List of Works 1 1
2 2
3 3
4 4
5 5
6 6

10.00 – 1.00

List of Works 1 1
2 2
3 3
4 4
5 5

1.00– 4.00

List of Works 1 1
2 2
3 3
4 4
5 5
6 6

4.00 – 7.00

List of Works 1 1
2 2
3 3
4 4
5 5
6 6

7.00 - ……………

List of Works 1 1
2 2
3 3
4 4
5 5
6 6

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7. 365-Days Analysis (3 Different Types of Poor Families)

Write number of days of work in each month for male and female in the columns provided

April May June July Aug Oct Nov Dec

Type Jan Feb March Sep
of
Work
M F M F M F M F M F M F M F M F M F M F M F M F

 Write number of days of work in each month for male and female in the columns provided

8. Credit Analysis (Village Level)

S. No Source No of Families Average Loan Amount Seasonality Purpose Terms & Conditions
1 Bank
2 SHG
3 Money Lenders
4 Traders
5 MFIs
6 Relatives
7 Friends
8 Other

 Institutions
 Credit needs
 Types of lender
 Sufficient credit availability or not
 Mode of repayment

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9. Diseases Analysis (Village Level)

S. Type of Treatment in
No of Patents’ Causes Cost Remarks
No Diseases government/ private
1

10. Education Analysis (Village Level)

Anganwadi/ School/
Class No of Persons Men/ Women Private Government Remarks
College

Nursery

LKG

UKG

1 to 5

6 to 10

Inter

ITI

Degree

PG

Others

 Focus on children education

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11. Seasonality (Village Level)

Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Works

Diseases

Credit
Festivals
Labour Re-
quirement
Marketing
Purchase
Marriage

12. Institutions Analysis (Village Level)

S. No Institutions/ Community Based Members Type No of Purpose
Organization Members
1
2
3
4
5
6
7
8

S.NO Name of the Service Institution Accessibility Quality Remarks

1
2
3
4
5

 Institutions and service providers

 Functioning of the institutions
 Quality of the institutions
 List of institutions such as social, financial, governmental, non-governmental etc. working in the
village
 What more institutions are required
 People’s interest in community institutions

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13. Migration Analysis (Village Level)

No of Families Name of The Work Place Period (In Months) Terms & Conditions

14. Local Opportunities Analysis (Village Level)

S.NO Services/ Products/ Processing Units

 Find out local opportunities already existing and related to the village basing tools and demand for
services and processing units, in the villages, gaps in the village. Mapping gaps with this tool.

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15. Value Chain Analysis (Main Product/ Service)

Local value
Input Pre production Production Post Production Market
addition

Activity

Labor cost

Other Cost

Total cost

Total income

Profit/ Loss

Gaps

Limitations

Best practices

Possible inter-
ventions

Risks involved

Gender

 Components in the value chain

 Factors affecting value chain
 Activities, costs and profits
 Market trends
 Constraints and risks

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16. Vulnerability Analysis (Village Level)

Type of Total
S. No Male Female Pension Who take Care Health Status
Vulnerability Persons

1 Old Age

2 Widow

3 Disable

People With
4
Living HIV

5 Orphans

Vulnerabilities and Coping Mechanisms

S.NO Vulnerability Coping Mechanisms/ What people can do

1 Diseases

2 Credit

3 Crop Failure

4 Drought

5 Not having food

6 Death in work / Migrating place

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17. Demand Estimation

Demand estimation for a product will include the cumulative demand for the product/service in the market.

The demand estimation template is shown below.

To determine the market demand, consultation major players in the market the product. The key players could be large traders in the
business and could be at the local market, block, district or beyond.

Demand Demand Size Demand Size

Sector/ Size in Rs. in Rs. in Rs. Average in Rs.
Product (s) Description
Industry (Consultation (Consultatio (Consultatio ((D1+D2+D3)/3)
1) n 2) n 3)

It is always advisable to include the biggest supplier/manufacturer or seller of the product(s) in demand estimation exercise.
Demand estimation for a product can be done with the following steps:
 Identify the product, its industry and describe the feature, form and use.
 Identify the key players in the market in that area. List down the contact details of the person and fix an appointment with them.
The discussion with the concern person can happen over telephonic conversation but it is advisable to visit them and discuss. Talk
to at least 2-3 such big players to get a balanced view.

 To ascertain the demand ask the key players where they buy the product from and how much they buy. Also ask them what they
estimate the demand would be. From this information, conclude how much the demand would be. Remember that the
information would be approximate, not accurate.

 Calculate the average of the demand estimated by the experts/key players. This would be the demand for the product/service.
Similarly, demand estimation can be done for skills and jobs in a market. Then, the demand estimation will be more in terms of
personnel requirement.

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18. Enterprise Mapping

Enterprise mapping records the existing enterprises, their issues and scope for more enterprises or improvements in the existing ones.
This would require understanding the types of the enterprises, number of enterprises in the area, products and services they offer,
number of entrepreneurs and people working with them, various skills required, availability of required skills, major market for inputs
and major market for sale of products/services.

S.No. Type of Enterprise Dependent Persons Market (local, nearby

Income
Season Days market, distant
(Rs.)
market)
Male Female

Process to do enterprise mapping:

 Visit the village and list all the enterprises in the village.
 Categorize the enterprises into small, micro and big. Number them or code them
 Identify the business type in each category
 Estimate the number of people working in the enterprises—Segregate them into male and female.
 Record information regarding products and services the enterprise provides.
 Visit 2-3 major entrepreneurs in each category to get a sense of the business. Collect information on the people working, average
age, wage/salary provided.
 Try to capture the functioning of the enterprise, when it works, how many days it works, which are the season when it functions.
 Also inquire what are the products/services it offers, price and quantity it sells and the income it earns per year.
 Estimate the income and expenditure of the enterprise
 Identify the market where its products and services are sold.
 Visit the market places which may be at local level, nearby village Observe the movement of the products and services, their
buyers, price and use.
After the mapping, analyse the information and understand the demand and supply status, employment opportunities available, scope
to start new enterprises or expand the existing enterprises for providing more and better products and services. It will help in
understanding the present status and existing opportunities.

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19. Education and Health Ranking

The education and health ranking tool helps to rank status of availability of education and health services in any village/location.

In
10 No Score
Availability of educational Facilities (N) > 1km >3km >5km > 7km
km+ Service (S)
village

Primary 10 8 6 4 2 1 0

Secondary 10 8 6 4 2 1 0

Intermediate 10 8 6 4 2 1 0

Arts/commerce/Science College 10 8 6 4 2 1 0

Engineering/Medical college 10 8 6 4 2 1 0

Computer Centre/Facility 10 8 6 4 2 1 0

DI (Decision Index) = Σ S/N ∑S

The tools capture availability of services and distance of the source of services from the village.
The resource availability is ranked on a scale of 0 to 10, categorised distance-wise.
A score of 10 indicates the availability of the service and a score of 0 indicates lack of the service.
Sum of the category-wise scores will give overall score of the village.
The Decision Index (DI) is calculated by dividing the total score of the village in all parameters and dividing it by the number of
parameters.
The DI indicates the overall position of the village in that particular aspect. Higher the DI, better the availability of the service in the
village.
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20. Grading Tool

APMAS, in collaboration with leading rating organisation M-CRIL has developed a SHG grading tool called GRADES. GRADES is
an acronym for the 6 parameters viz. Governance, Resources, Asset Quality, Design of Systems, Efficiency and Profitability,
Services to SHGs and initiatives and SHG performance. Each parameter consists of sub-parameters and each carries a certain number
GRADES Broad Parameter Name of the Indicator Weight
Understanding of the board members (4)
EC/ Board Meeting (4)
G-1 Quality of Board
Decision making process
Governance 16%
Selection of Board
G-2 Accountability & Legal Com. Accountability & Legal Compliance (5)
G-3 Member Satisfaction Member Satisfaction (2)
R-1 Human Resources Human Resource (5)
Total funds available per member SHGIdle funds
Resources 6%
R-2 Financial resources Repayment rate of External Loans
Capital Adequacy
Loan Diversification (o/s) in terms of SHGs
A-1 Loans Maintenance Loan Adjustment/Rescheduling
Recovery rate (as on date)
Asset Quality 10%
Portfolio At Risk > 90 days
A-2 Portfolio Quality Portfolio At Risk >180 days
Arrears Rate > 90 days
Regular updating of books of a/cs (7)
D-1 Accounting system
Design of Sys- Accuracy of recording (8)
10%
tems D-2 MIS MIS (8)
D-3 Internal Control Mecha. Internal Control Mechanisam (6)
Staff Efficiency (related SHG ope.) (2)
E-1 Efficiency
Operating Efficiency (Operating Cost Ratio)
Efficiency &
Yeild on portfolio/Ann. percentage rate 12%
Profitability
E-2 Profitability Operational self sufficiency
Financial Self Sufficiency
S-1 Financial Services Financial products offered (3)
Ser.to SHGs
S-2 Non- Financial Services Non- Financial Services/ products (5) 6%
& Dev.Ini.
S-3 Development initiatives Development initiatives (6)
Homogeneity of group (3)
Regularity of meetings - for a year
Attendance level
Quality of recording systems (8)
S-1 Self Management Members participation in decision making
Ability to enforce norms (3)
Financial Transactions within the group
Default and conflict resolution mechanism
Members awareness (5)
Awareness/participation in social dev.(6)
S-2 Social & Impact
SHG Decision making ability (2), Impact
40%
Performance Regularity of savings- last one year
Velocity of Internal Lending
Repayment of terms
Monthly repayment pattern
Assest quality (> 3 months)
S-3 Financial Performance Borrower Quality
External Loan Repayment
% of production loan funds
Portfolio distribution among members
Pattern of internal lending
Avg.Idle Fund (from last One year)
Total 100%

of points. The total score for each parameter is totalled and it signifies the position of the SHG. Each parameter carries different
weightage.

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21. Break-Even Analysis

Break Even Point (BEP) is a point of production and sale of units - when the total revenues of an Enterprise are exactly equal to
total costs.
It helps an enterprise to design its production and sales plans i.e. how much is to be produced and at what cost, at what price is the
product to be sold and in which quantity such that it can recover its entire expenses.
Profit starts only if the level of operations exceeds the BEP.
Types of cost: All revenue costs are either variable or of fixed cost in nature.
Fixed cost: Costs that do not change with the change in the volume of production
Ex: Rent, interest.
Variable cost: Costs that change directly with production. Once the production is stopped, there will not be any variable cost.
Raw material cost, labor wage, transportation charges etc.
Break even analysis is required to know if an enterprise is in a position to meet its fixed cost even if unit’s suspension of operations.
Sales value = Fixed cost + Variable cost + Profit (if any)
Contribution = Sales value – Variable cost
BEP is useful to know:

BEP = Fixed cost* Sales Value

Contribution

What sales vol. is needed to get budgeted profit?

At X volume, what will be the operating profit/ loss?

BEP in Units BEP = Annual fixed cost / (Selling price per unit (-) Variable cost per unit)

BEP = Annual fixed cost / (selling price per unit (-) Variable cost per unit) * Selling
BEP in Amount
price per unit

P/V = (Contribution / Sales value) * 100 (in percentage)

BEP in terms of P/V ratio
P/V Ratio - Profit- Volume Ratio

BEP in amount BEP = Annual Fixed cost / P-V ratio

With X% increase in vol. what is increase in profit?

What is change in profit, if fixed cost increases or variable cost is reduced, etc.?
To estimate the Margin of Safety:

MoS = Actual Sales – Break Even sales X 100

Break Even Sales

“Larger is the MoS, safer the firm”. 

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