Understanding livelihoods that involve micro-enterprise: markets and technological capabilities in the SL framework.
Mike Albu; Andrew Scott
Mike Albu and Andrew Scott
How can sustainable livelihoods (SL) approaches be used in the context of enterprise development? Which concepts and tools help link enterprise analysis with sustainable livelihoods?
This overview report was produced by the Intermediate Technology Development Group (ITDG) and is based on research in Kenya and Ghana. The research explored the role of private-sector markets and technological change in livelihoods, hence addressing some omissions in the SL framework. In particular it tested two analytical tools for understanding market dynamics and technological change, and found that:
- Subsector analysis is a valuable tool for understanding market structures and processes, for diagnosing opportunities for pro-poor enterprise development and prescribing possible interventions.
- The concept of technological capabilities is useful in investigating adaptive processes – particularly institutional support mechanisms and knowledge flows that generate technological change among small enterprises.
The insights produced by the research suggest that some adaptations to DFID’s version of the SL framework would be helpful:
- The PIPs box should treat market characteristics more explicitly, including analysis of market structure, private sector agents, the regulatory environment, market trends, and the influence of supporting institutions.
- At the heart of the asset pentagon, a further category of adaptive technological capabilities would emphasise that people’s ability to generate and manage technological change is crucial to sustaining micro-enterprise-based livelihoods.
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