Income Generation

In developing countries, many people live in areas where there are few stable employment opportunities. Denied the possibility of earning a decent living, whole families find themselves trapped in a life of poverty. In rural areas, where 70% of the world’s poor live, the problem is particularly acute. People are often forced to walk for miles in search of low paid, irregular work or to migrate to find seasonal employment, leaving their families behind.

FYF believes that being able to establish a livelihood is a basic human right. We work with poor communities in India and Malawi and help them both to preserve traditional livelihoods and to develop a range of small business ventures that bring new sources of employment and income to local people.

Case Study: enabling sari-weavers in Varanasi, India to build a stable livelihood

FYF and local partner, the Human Welfare Association (HWA), work with people who have traditionally worked as sari weavers in villages surrounding Varanasi to create opportunities for economic and social empowerment.

The sari weavers are the most marginalised group in the area and suffer exploitation and discrimination. With the support of HWA, the sari weavers have formed community self help groups that aim to improve the conditions of the sari weavers and provide low-interest loans to members to finance their small business activities.

Sukha’s story

Sukha Devi expertly spins the thread that will be woven through the sari as an intricate design. Despite being a highly skilled artisan, Sukha and her family were trapped in a life of poverty as they were indebted to moneylenders.

"Before I became involved in the group, we had to borrow from moneylenders to purchase raw materials or to pay for any repairs to our loom. Because we’d borrowed from them, we were obliged to sell our saris to the moneylenders, at whatever price they demanded."

Two years ago, Sukha joined a self help group run by HWA and took out a loan that freed her from the moneylenders and enabled her to earn a decent wage from her skilled sari-weaving.

The group loans have meant that we can now buy our raw materials from the market at a fair price and we are able to sell our saris directly to the traders for a better price. We set aside a certain amount of money every month to put back into the group fund and we also use this extra money to send our two grandsons to school."

The self help groups act as a forum for money management and skills training and gives members the space to discuss other issues.

"Together we discuss all the issues affecting the village from roads to water to income earning opportunities. We talk, laugh and share. Through these meetings I feel as though we are all united. We’ve seen other villages build schools and roads and now we would like to do the same. The association provides us with the funds and support so that we are able to make improvements to our lives."

Involvement in the self help groups has enabled thousands of weavers like Sukha to earn a stable income from their traditional livelihood and is giving them the opportunity to create a better future for themselves and their families.