In short
A livelihoods grant proposal should show who lacks decent income or work and why, prove there is market demand for the skills or products the project develops, measure changes in income and employment, include the poorest and most excluded, and explain how participants will keep earning after the grant.
Livelihood funders ask a simple question: will people earn more, more reliably, because of this project? Proposals that start from market demand and measure income convincingly stand out.
Who funds livelihood projects
Livelihood and economic empowerment projects are funded by foundations, development agencies, corporate and CSR programmes, microfinance and impact investors, and governments. Common themes include skills training, enterprise development, savings groups, cooperatives and market access.
Recommended outline
| Section | What to include |
|---|---|
| Problem statement | Income, employment and poverty data for the target group, and the barriers they face |
| Market analysis | Evidence of demand for the skills, products or services the project develops |
| Methodology | Training, enterprise support, access to finance and links to buyers or employers |
| Outcomes | Changes in income, employment, savings and business survival |
| Inclusion | Deliberate inclusion of women, youth, persons with disabilities and the poorest |
| Sustainability | Business viability, cooperatives, savings groups and market links that continue |
Example results and indicators
| Result | Indicator |
|---|---|
| Skills gained | Number of participants completing training and passing a skills assessment |
| Employment | Percentage of graduates in work or self-employment six months later |
| Income | Change in average monthly income of participants |
| Enterprises survive | Percentage of businesses supported still trading after one year |
Typical budget lines
- Training and trainers
- Start-up kits, tools or seed capital, within funder rules
- Mentoring and business support
- Market linkage events and transport
- Savings group or cooperative support
- Monitoring of income and employment
What makes a livelihood proposal stand out
- Based on a market analysis, not only on what participants want to learn.
- Measures income and employment after the training ends.
- Includes the poorest and most excluded deliberately.
- Links participants to buyers, employers or finance.
Common mistakes
- Training for jobs or products with no local demand.
- Measuring training completion instead of income.
- No follow-up after the training ends.
- Grants or loans without business support.
Frequently asked questions
How do I measure income in a livelihood project?
Collect a baseline of participants’ income, then measure again at set intervals, for example six and twelve months after support, using the same simple questions.
Why do livelihood proposals need a market analysis?
Because skills or products only raise income if someone will pay for them. A short market analysis shows funders that demand exists.
Written by Gachi Foundation, a non-profit in Jharkhand, India. All proposal-writing resources.