In the rural livelihood system those -who at the time of- stress could not support his/her financial needs required for the social and economic purposes are the most vulnerable. The vulnerability slides the household to the deeper level of poverty. It has been the liquid assets in the form of livestock etc that has been utilised by the poor to overcome the stress of the financial needs. SL’s Small Enterprise Development (SED) programme has been supporting a micro-credit facility to the rural communities. The purpose has been to secure the poor’s liquid assets and then building their financial assets base to recover from the shocks of the vulnerability. The program has linked its credit facility to the obligatory savings, primarily to promote increased investment in the production sector. It has been assessed that the increasing saving capacities reduces the financial vulnerability, mobilises local financial resources and increases financial management capacity of the poor’s. The SED programme has further extended its facilitation by capacitating the poor in their social, managerial and vocational skills to secure the future financial needs on sustainable bases.

Financial capital formation and enhancement of capabilities:

The SED programme major portfolios of credit has been showing that 63 percent partners communities have utilised credit for livestock development activities followed by 17, 18 and 2 percent for off-farm enterprise development, social development and agricultural inputs respectively. The volume of credit, managed by credit management committees has increased by over one percent with the disbursement of 2,396 loans. (50 percent women loan). Among the SUNGI’s partner communities’ the women, saving trends have always been higher than men have. Nearly 55.6 percent of total Rs. 6.48 million community savings are from women. The programme has extended its saving coverage to the 35 new partner VCs. Presently 60.5 percent of total partner VCs have been engaged in the saving and credit program. The programme has facilitated the partners women and men in building their capacities through 61 managerial and vocational skills trainings. Additionally, with technical support of SED section two tailoring trainings for 19 women participants have been organised by the women communities on their self-initiative.

SED programme sustainability

The SED program has improved its operating and financial self-sufficiency by expansion of its activities and out-reaches to the marginalised groups. The program has reduced its operating cost (currently is less than 12.9 percent) and improved its operating self-sufficiency ratio from 55.4 percent to 61.5 where as financial self-sufficiency ratio has also been improved to 49.5 in 2001 from 42.3 percent in 2000. The Afghan war and political conditions of the area has adversely affected the loan disbursement activities. This has increased the cost per rupee lent from Rs 0.30 to Rs 0.39 in reporting period. Where as the cost per borrower has decreased from Rs. 1,112 to Rs. 1,031. The number of active loans per credit officer has been decreased from 316 to 254 due to induction of new staff. The average amount of loan per borrower has decreased from Rs. 10,854 to Rs. 9,863 where as the recovery rate of 96 percent has been achieved and overdue has been reduced significantly. 

The Enterprise Development Programme (EDP) is the successor to the Crafts Program. In 1994 "Jisti" Craft Program (JCP) was a revival program which started on a voluntary basis in one village.

This village was Noordi and it was formally adopted by Sungi in July 1997 to become part of this funded pilot program. In response to the demands of the village communities, it has now reached out to villages in four districts of Hazara, namely Haripur, Abbottabad, Batgram and Mansehra, and in Muzaffarabad of AJK within Sungi’s program area.

Now the program has also reached out to marginalized crafts women belonging to CBO's, NGO's all over Pakistan to promote traditional crafts and provide support in networking and marketing of their products through Sungi Craft Shops.

At the beginning of 2009 a total of around 5000 artisans work with EDP in these areas:

• Abbottabad
• Mansehra
• Haripour
• Batgram
• Muzaffarabad

The "Jisti" Craft Program later included other embroidery stitches as well. It has now expanded to develop other local crafts, such as wood-carving, furniture, leather work, clay products, straw, carpet and cloth weaving as enterprises, the scope of the program further broadens, to encompass a larger partnership base from the year 2006 onwards.

This has been achieved through capacity building trainings, marketing and networking , linkage development, forming networks and associations of local craft persons to gain support for their rights.

EDP has been  advocating for the formulation of polices for the rights of Home based women workers through lobbying with parliamentarians, government i-e federal , provincial, also raising awareness among the, craft persons, middle wo/men, private sector, and consumers on fair trade practice / fair wages.

Advocacy Initiatives

The program is working on the awareness raising of the home based worker, rights since 1994. In the recognition of its efforts Ministry of Women Development selected Sungi and assigned the task to draft the first National policy on Home based women workers with the financial support of UNIFEM.

After consulting with all the concerned stakeholders in all four provinces of Pakistan  the first draft of the National policy was also  shared in the Regional conference on home based workers in October 2008.

Fair Labour Policies

On all products is handwritten note showing the name of artisan and of the village.
Registered with Fair Trade organization as advocating partner

Profit Transparency Policy

All price tags give details about profit distribution.Another FIRST in Pakistan.
75% to the artisans and 25% to Sungi

Sungi’s intense involvement in this area is continuing in the process of creating livelihoods, supporting entire communities on many levels such as health, education and standard of living. The women’s  involvement in the economic processes, defines a new role for them, a role which traditionally has been non-existent in Pakistan.

One of EDP’s most talented artisans presenting her fully Jisti embroidered chudder, which took two & half years to complete. A most beautiful and exquisitely finished piece of art considering that Jisti is embroidered from the reverse

The Programme's objectives are:

•  "Improve local livelihoods through economically viable, socially acceptable and environmentally sensible use of local resources"
• Generate income for the most marginalized communities and therefore reduce poverty. 
• To improve livelihood rights of the most marginalized communities which is achieved through capacity building, effective networking and advocating for the rights of home based women workers at various levels for legislation / policy reforms. 
• Enhance entrepreneurial skills of rural craft persons by linking them also to microfinance institutions.
• To establish small enterprises at house hold levels. Especially by marginalized women, contribute to considerable improved standards of living together with social integration which supports and strengthens each person's life on all level. We encourage creativity and community work

Capacity Building

Sungi is working with dedicated staff at regional level and its objectives are achieved by holding regular exposure visits and training to capacity build in the following specialized fields:

• Quality control
• Colour and design
• Product development
• Skill enhancements
• Marketing
• Record Keeping

To enhance and support the success of the home based women workers Sungi opened their own Craft Shops as far back as 1999. Starting with one shop in Islamabad, followed by Karachi then in Lok Virsa / Islamabad and with the recent addition in Abbottabad. Click here for more information

 Awards and Memberships

Theircontinues work towards fair labour and advocacy has enabled Sungi to become a member of Fair Trade. One of the very fewin Pakistan.  By observing Fair Trade practises, Sungi is bringing thebest of Pakistan's handicrafts onto the market and at the same time is strengthening local communities

Award in 2005 Sungi  from UNIFEM and Home Net South Asia on best improvement in the quality of life of  HBWWs.

UNESCO's Seal of Excellence
for Sungi quality products 2007

Joint Ventures

EDP along with the Indus Heritage Trust & Capital development Authority (CDA) Islamabad has initiated a joint venture of setting up of Arts & Crafts village at Shakarparian Complex, Garden Avenue, Islamabad.

It is envisioned that the Arts & Crafts Village would portray, preserve and revitalize the cultural identity of Pakistan and serve as a showcase for the nation's arts and craft heritage. It is a unique example of public private partnership.  It is also a two pronged approach towards the empowerment of marginalized craft-persons.

This approach will not only make the traditional craft as income generating activity but also will subsequently lead to the empowerment of the marginalized craft- persons, as well as provide HBW/ Craft Persons a viable marketing opportunity, promote Fair Trade practices by limiting the role of middle men. The craft- persons will also be provided with capacity building training regarding designing and quality check to enable them to cope / explore marketing options.

The Future
Sungi Development Foundation has been asked by HomeNet South Asia to establish the South Asian Business Association (SABAH) for Home based workers in Pakistan to support and strengthen the development of home-base artisans throughout Pakistan.
 
SABAH is acting as a facilitating organization working with different producer organizations and individuals involved in organizing home-based workers to build crafts and other home-made products.
 
Among others, SABA will provide intense capacity building services, production facilities and marketing services