In the real world
Key points for companies
External conditions that improve likelihood of success
- Clarity on communities’ gaps, needs, and opportunities
- Communities feel ownership of any alternative livelihood options that arise
- Livelihood opportunities are grounded in viable markets, as grant/donation-based opportunities have limited or short-lived impacts
- Stakeholders enjoy free, prior, and informed consent (FPIC) when required
- Secured market access and purchasing agreements for new products that are developed
- The system for education and skill development (i.e., vocational study) is aligned with landscape/jurisdictional priorities
- Smallholders have access to finance, particularly seed funding to initiate and/or upscale their businesses
- Communities are familiar with real success stories to overcome their reluctance to change livelihood models
The business case for this intervention
- By supporting livelihood activities, a company can generate goodwill, build long-term relationships, and enhance its social license to operate, thus reducing potential costs of community conflict and reputational risk.
- To the extent that communities are company suppliers, company support may engender loyalty and gain an advantage in a seller’s market.
- Building market-based alternative livelihoods can create opportunities to source new products and develop new markets.