Kilinochchi is a severely underdeveloped and poverty stricken district that was affected by both the civil war and the 2004 tsunami. Out of the four Divisional Secretariats in this district, Karaichchi is the mostly affected with the largest disadvantaged population as defined by widows heading households (3783) out of this there about 1189, under 50years old widows selected for this activities. Widows of Kilinochchi District, and especially the Karachci Divisional Secretariat division are disadvantaged through the lack of facilities, resources, support, alienation, marginalization, and social exclusion. These poor and disadvantaged conditions pose a risk to health (behavioral, physical and mental), livelihood, career, trainings, academic achievements, and the ability to live productive lives. These families are primarily economically disadvantaged, that is, they are with no business opportunities, credit facilities, banking facilities, lenders, access to markets, communication facilities, left out of the supply chain, and forgotten by investors and business opportunists. They are also lacking in other basic skills essential for economic success such as marketing and management skills, leadership, and technical skills making them further vulnerable in the economy.

CONTENTS

I. PROJECT DESCRIPTION

II. BACKGROUND/SITUATION ANALYSIS

III. PROJECT OBJECTIVES

IV. DESIRED IMPACT AND OUTCOME OF THE PROJECT

V. PROJECT WORK PLAN

VI. DETAILED BUDGET REQUIREMENT

VII. LOGICAL FRAMEWORK

VIII. RISK MANAGEMENT PLAN

IX. ACTIVITY PLAN:

“Skills Development of District/Divisional Secretariats for Improving Small-Medium Enterprises in Sri Lanka”

PROJECT PROPOSAL

I. PROJECT DESCRIPTION

· Project Title: “Support for sustainable livelihood recovery among conflict affected disadvantaged people in the Kilinochchi District.”

· Type of Project: Entrepreneurship Development

· Project Proponent/s: Divisional Secretary/ UNCOR NGO Organization

· Number of Beneficiaries: (1189)

· Beneficiaries: small-scale farmers, female headed households, women groups as well as former combatant.

· Date of Implementation/Duration: January 2016 to December 2016 /One Year

· Area of Project Implementation: Karaichchi Divisional Secretary, Kilinochchi District

· Budget Requirement: 4,72,67,150.00

II. BACKGROUND/SITUATION ANALYSIS

· Why implement this project?

· Is there an existing concern or potential problem that you want to address?

With over 6,000 families recorded in Kilinochchi district alone headed by widows (Figure 1), there is an urgent need for action to improve their quality of life through employment. The National Human Resource Development Council of Sri Lanka, in the Ministry of Public Policy, conducted a comprehensive assessment of factors affecting employment among widows in Kilinochchi district and concluded that the lack of financial support for a population looking to engage in entrepreneur work has created a significant economic problem. 80% prefer entrepreneur activities while 71% are without financial help to conduct them (Figure 2). Thus, microfinance can be the mechanism that bridges this gap between their financial dearth and entrepreneur development to make it possible to conduct SME (Rathiranee & Semasinghe, 2012).

Most engage in traditional agricultural and fishery industries; producing dairy or fish, as self-employment is the only practical option for most due to the lack of alternative employment, necessary skills for migratory work, and the readily available agricultural and fisheries resources. They do not profit much from this work as they are unknowledgeable about ways to add value to their products, have no financial help, are unable to take their products to the market, and have no facilities to store, pack and other product related needs. The needs assessment of widows heading households clearly indicated their frustration in being isolated from the banking facilities, business knowledge, supply chain, inefficient public sector, and clear lack of interest to engage with them from the private sector. They also indicated the need to add value to their abundant raw produce and the need to find the most lucrative markets for their products. Again emphasizing their financial frustrations to engage in these activities, the participants mentioned the lack of credit lending, knowledge, facilities, and formal or informal social networks for them to accomplish these necessary next steps to grow their small businesses.

Figure 1. Needs Assessment Population Information

III. PROJECT OBJECTIVES

OBJECTIVES

STRATEGIES

What does the project hope to achieve?

(i) To Improve standard of living among widows by facilitating micro financing to SMEs that will revitalize agricultural activities, small businesses activities and increased food production through investments focused on small-scale farmers and entrepreneurs including women and other vulnerable groups.

(ii) To Promote sustainable livelihoods and social stabilization; through enhanced employability of unemployed female-headed households through skills, business and life-skills training

(iii) To facilitate the development and growth of enterprises with a focus on the special needs of disadvantaged widows heading households in collaboration with local business development services, training providers and local government services

(iv) To provide business development services including post-training support, vocational counseling, long term business mentoring, equipment, tools and facilitation of access to credit

What are the strategies that must be done to meet the objectives?

Introduce the loan disbursement among the self-help groups’ (SHG) members systematically, to engage in economic activities in the long term to strengthen their SHG with the support and coordination of local institutions and public and private sectors in their areas.

In a bid to revitalize economic capabilities of affected families and communities, the project successfully engaged the most vulnerable groups, such as women headed households in entrepreneurial development activities. In addition to training on improved production technologies including dairy, fisheries, handicraft, fruit processing, reed rush handicrafts, batik production, as well as rice flour production and packaging, beneficiaries were also equipped with knowledge of export markets, quality control and branding. Subsequently, a widow will be able to multiply their flour production from 35 to 250 packages a month after participating in training.

Lastly, Conduct a 3-day trade fair in Karachchi DS which will showcase local products and skills, as well as promoting the district’s vibrant small industries. With local businesses represented, the fair will bring rural entrepreneurs together with local producers, representatives from Government and the private sector, as well as international marketing and business associations. The trade fair will bring a significant boost to local businesses and subsequently will be replicated all over Kilinochchi District.

IV. DESIRED IMPACT AND OUTCOME OF THE PROJECT

· Why implement this project

The population of greatest need in post war regions is women headed households. There are over 6000 disadvantaged families recorded in Kilinochchi district living in poverty with low quality of life. They have become destitute due to experiences with war. Such post war areas of Sri Lanka are extremely poor due to disadvantaged social and economic circumstances. Due to the lack of employment opportunities, many in this post war region have turned to self-employment as their preferred option. To facilitate this option, microfinance can intervene as a stepping stone to these ambitious entrepreneurs. As many of the widows prefer entrepreneur activity in the agricultural sector, with the help of microfinance, SME can be initiated to fit these interests while also increasing agricultural productivity and improving food security among the affected population. Moreover, these activities that will revitalize small businesses in rural areas will further improve market opportunities for locally produced agro-based products and increase the economic stability of the productive sectors. Moreover, if we could implement this project which could support to reduce their unemployment, poverty, improve their quality of life, health, family relationships, community wellbeing, improve individual capacities to save, and grow in business.

The benefits of micro financing will be numerous for these poor, unprivileged, and vulnerable Kilinochchi district communities. First, the subsistence level entrepreneurs will make numerous networks with other public and private organizations to grow their businesses in innovative directions and to more profitable levels. Second, these beneficiaries will use their existing resources to receive multiplied benefits from previously profitable activities. Third, the communities will benefit from employment creation through the successful business activities of the beneficiaries. Fourth, these individuals will experience a higher quality of life and standard of living due to their immediate and long term economic and social benefits.

· What are the specific measures to sustain the project?

SHGs will be formed and strengthened for the continuous period of the project. Committee will be established among the participants themselves with the support of government coordination through Rural Development Officers (RDO) and grass roots level coordinators to monitor their activities and to strengthen their capacity as needed. Joint monitoring will be done with the local institution (Ex. RDS, WRDS) as a foundation to their sustainability and continues development. In addition, continues community mobilization must be conducted among the beneficiaries and groups which make a unit. Moreover, team building, management capacity and accessibility of resources among the entire community must be done.

These financing groups can be established by women’s’ rural development societies with built in monitoring systems of the borrowers. They can provide low interest loans for investments for promising members of a community. Help must be brought to these interested communities to organize themselves into self-help financial groups. Compared to other regions that have used micro-financing with mixed success to due misusing of funds by powerful members of a community, the members of post war regions are equally powerless and need financial help from self-help credit organizations.

In forming micro credit organizations, the post war regions need special assistance due to the lack of similar activities in the past. In doing so, they must be encouraged to coordinate their activities with Divisional Secretariats (DS) and the local Grama Niladaris (GN) to avoid duplication of programmes and to locate the most needed community members. Needs assessments of the community members must be conducted with the assistance of the GN prior to awarding the credit. Thus, the DS will help select the needy community while the GN will help select the needy individuals. This organization that act as guarantors for each other and require no collateral is a welcoming financial and investment relief for individuals overwhelmed by their experience with severe vulnerability in the post war regions of Sri Lanka.

· What are the linkages with other initiatives or reforms in the sector?

For continuous development of entrepreneurs, their activities should be link with the private sectors as well as with relevant departments. The project must create the linkage among local and foreign markets to promote their productions. These SHG must be strengthened to have links with multiple sectors such as hospitality and industrial for mutual growth and a good working relationship with various government department and institution to access available facilities and services. These linkages will support to become pillars of growth for the entrepreneur businesses.

V. PROJECT WORK PLAN

Objectives	ACTIVITIES	OUTPUT / TARGET	COST
promote sustainable livelihoods and social stabilization; through enhance the employability of unemployed female-headed households through skills, business and life-skills training	1. identify the DS and GN and Get the approval from GA and DS 2. Facilitate meeting with villagers (RDS, WRDS, Youth club and relevant representatives) 3.Conduct base line survey [PRA, House hold survey (HHS)] 4. Beneficiaries selection (through GN, DS and HHS 5. Self Help Group Formation (SHG)	1. Get approval of GA and DS 2. Conduct meeting to make them aware on this project (42 GN). 3. Identify the strengthen, weakness, threats and opportunities and their economic and social consequences. 4. based on the survey and data select the real and interesting beneficiaries. 5. form the SHG with 15 member in a group	211,350 237,800 178,350
To facilitate the development and growth of enterprises with a focus on the special needs of women, youth and disabled entrepreneurs, in collaboration with local business development services, training providers and local government services.	1. Orientation meeting- one day (Book keeping, accounting, teambuilding, communication and leadership) 2. Business plan development meeting- three days (viable business, market research	1. Develop the skill and basic understanding on Book keeping, accounting, team building, communication and leadership 2. Develop their skill on preparing own business plan 2 days programme	8,47,850 1,5,76,800.00
To provide business development services including post-training support, vocational counseling, long term business mentoring, equipment, tools and facilitation of access to credit	1. Loan Disbursement 35,000 per beneficiary 2. Business startup (Monitoring) 3. Vocational training	1. Provide the loan to each group 2. Start continues monitoring through using existing mechanism	4,16,15,000.00
	1. Organize a exposal visit 2.Trade fair	1.To motivate the beneficiaries through visiting with best 500 entrepreneurs the best role model groups. 2 days 2. Showcasing local products and skills, as well as promoting the district’s vibrant small industries.	800,000.00 500,000.00
	1. Monitoring. 2. Reporting 3. Conduct the final evaluation 4. Prepare the leave lets, printing and publications 5. Miscellaneous	1. Identify the impact of the project. 2. Print Report 3.evaluate the impact of the project	100,000.00 1,000,000.00 200,000.00
Total			4,72,67,150.00

VI. DETAILED BUDGET REQUIREMENT

Budget Line Item	Description	Amount Needed	Proposed Source/s
Facilitate meeting with villagers (RDS, WRDS, Youth club and relevant representatives)	Conduct meeting to make them aware on this project (42 GN). Using Dos and Resources Person – 150X1189	178,350
	11 days Resources Person 3000X 1 day [2 GN per day]	33,000
Conduct base line survey [PRA, House hold survey (HHS)]	Identify the strengthen, weakness, threats and opportunities and their economic and social consequences among all selected beneficiaries. Enumerators cost per person is 200 X1189	237,800
Self Help Group Formation (SHG)	form the SHG with 15 member in a group 150X1189	178,350
Orientation meeting- one day (Book keeping, accounting, teambuilding, communication and leadership)	Develop the skill and basic understanding on Book keeping, accounting, team building, communication and leadership Short eat – two time 300x1189 Lunch- 250x1189 Stationary 100x1189	356,700 297,250 118,900
	Resource person per one prograramme 3000x 25	75,000
Business plan development meeting- three days (viable business, market research	Develop their skill on preparing own business plan 2 days programme Resources-25x 3000x2 Beneficiary-1189x 550x2 Stationary 100x1189x1	15,76,800
Loan Disbursement 35,000 per beneficiary	Provide the loan per person 35,000.00 to the formed group as deposit	4,16,15,000
Organize a exposal visit	1.To motivate the beneficiaries through visiting with best 500 entrepreneurs the best role model groups. 2 days -50,000 per 100 person x 5 Food per person -600x500 Accommodation per 1=500x500	800,000
Trade fair	Showcasing local products and skills, as well as promoting the district’s vibrant small industries. Organizing, food, short eats, hall charge, transport	500,000
Reporting	Collect the relevant information, write and print the report	100,000
Conduct the final evaluation	evaluate the impact of the project Resource person fee, data collecting, analyzing and report writing	1,000,000
Miscellaneous		200,000
Total		4,72,67,150.00

Saturday, September 10, 2016

“Support for sustainable livelihood recovery among conflict affected disadvantaged people in the Kilinochchi District