The research study was conducted in the month of April-June, 2011 in Cuddalore district of Tamil Nadu and Karaikal district of Pondicherry. The study aimed at exploring the various needs of livelihood activities which is being carried out in the operating areas. The methodology adopted for the study was the discussion with the entrepreneurs, stake holders and the staff of CCFID by using the techniques of interviews, meetings, Focused group discussions and participatory rural appraisal.
The first exercise done was livelihood mapping which involves the identification of the activities in the various regions of the operating area. This exercise was an attempt to know the major livelihood activities in which the people are engaged. The two criteria for selection of the activities are income generation potential and employment generation potential of the activities. Livelihood Mapping provided the list of major livelihood activities classified into sub-sector, cluster, group activity and individual activity. The loan absorption potential of each activity was also determined.
Activity economics of various activities was done in order to find the feasibility of the particular activity. A proposal was developed for livelihood opportunities based on sub-sector, cluster and activity approach. Fourteen activities (six sub-sector, five clusters, and three individual activities) were selected as activities with high scope of livelihood financing and high employment generation potential based on whether they were high share and high growth or emergent. The relative importance of an activity with respect to number of livelihoods it supports as compared to other activities was also considered for the selection of the activity. For the activities identified as major activities investment potential was calculated. The projections are calculated for next three years from starting the activity. The detailed information about interventions required, employment potential and opportunities and limitations was also compiled. A concept paper was developed for livelihood financing approach to microfinance promotion. The paper presents the concept of livelihood financing which is a sustainable concept and it provides an overview of the livelihood financing citing the examples from the approach of the research study conducted by CCFID. The next step was to develop customized livelihood products on the basis of requirements of the particular activity.
The products for livelihood financing were developed on the basis of the needs and preferences of the key stakeholders. The process of product design and delivery was carried out based on the preferences of the entrepreneurs involved in the activity and also the organizations viability. The results of livelihood mapping exercise were used for developing the product prototypes. Nine product prototypes were developed on the basis of discussions with the key stakeholders. The livelihood service promotion resource material was developed as per the awareness the people in the operating area had. The awareness identification was covered through the questionnaire in the field work. Strong need identification for the setting-up of Livelihood Resource and Training Centre for providing the various livelihood services to the local entrepreneurs was done through a proposal.