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The Sustainable Livelihoods Index: A Tool To Assess the Ability and Preparedness of the Rural Poor in Receiving Entrepreneurial Project

Author

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  • Roslina Kamaruddin
  • Shamzaeffa Samsudin

Abstract

This paper describes the Sustainable Livelihoods Index (SLI) as a useful tool in assessing the livelihood elements of the rural poor households. Income data alone may not fully reflect the suitability of the hardcore poor in receiving government assistance in the form of entrepreneurial projects. In this case rendered projects do not take into account the ability and preparedness of the poor in receiving the projects. The main objective of this study is to measure comprehensively all the livelihood elements of the rural poor households through developing a Sustainable Livelihood Index (SLI). This index was based on Sustainable Livelihood Approach (SLA) framework. A total of 22 livelihood assets and outcomes indicators were identified from the data set and broadly grouped into five groups of assets namely human, physical, natural, social, financial assets and 2 groups of livelihoods outcomes which are food security and health status. Then, an aggregate SLI for each household was constructed by averaging all the seven groups of livelihood assets and outcomes indices with an equal weight. Overall, about 73% of considered households were attained an SLI below than 0.5, with a mean of 0.47. With regard to household income that has been used as a poverty measurement, the study found that the Sustainable Livelihood Index (SLI) was moved in tandem with the total of household income. There are 90.91% of the households in hardcore poor group were obtained SLI below 0.5 indicating that households with a low income will also have a low SLI. Although income and SLI were moved in the same direction, this paper suggests the use of SLI as a more analytically rigorous tool to assess the ability and preparedness of the rural poor than the regular use of household income level alone. Besides it may help the local authorities to broaden their scope in a manageable way as to ensure the sustainability of a given project.

Suggested Citation

  • Roslina Kamaruddin & Shamzaeffa Samsudin, 2014. "The Sustainable Livelihoods Index: A Tool To Assess the Ability and Preparedness of the Rural Poor in Receiving Entrepreneurial Project," Journal of Social Economics Research, Conscientia Beam, vol. 1(6), pages 108-117.
    • Handle: RePEc:pkp:josere:v:1:y:2014:i:6:p:108-117:id:1299
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    1. Endi Rekarti & Zakaria Bahari & Normaisarah M. Zahari & Caturida Meiwanto Doktoralina & Nor Asariah Ilias, 2019. "The Sustainability of Muslim Women Entrepreneurs: A Case Study in Malaysia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 430-439, August.
    2. Lokesh Chandra Dube & Sudipto Chatterjee, 2022. "Assessing livelihood impact of forest carbon projects using sustainable livelihood framework," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(8), pages 1-18, December.
    3. Viswanatha Reddy Krishna & Venkatesh Paramesh & Vadivel Arunachalam & Bappa Das & Hosam O. Elansary & Arjun Parab & Dendi Damodar Reddy & K. S. Shashidhar & Diaa O. El-Ansary & Eman A. Mahmoud & Moham, 2020. "Assessment of Sustainability and Priorities for Development of Indian West Coast Region: An Application of Sustainable Livelihood Security Indicators," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    4. Yaping Liu & Zhe Huang & Jin Chen & Linlin Nie, 2023. "Diagnosis of the Livelihood Sustainability and Its Obstacle Factors for Poverty-Alleviation-Relocation Residents in Tourism Communities: Data from China," Sustainability, MDPI, vol. 15(7), pages 1-27, April.
    5. Dipanwita De & Chandan Surabhi Das, 2021. "Measuring Livelihood Sustainability by PCA in Indian Sundarban," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18424-18442, December.
    6. Achmad Syamsu Hidayat & Ismi Rajiani & Deasy Arisanty, 2022. "Sustainability of Floodplain Wetland Fisheries of Rural Indonesia: Does Culture Enhance Livelihood Resilience?," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    7. Venkata Sai Srinivasa Rao Muramalla & Ateeq Mesfer Al-Hazza, 2019. "Entrepreneurial Strategies and Factors Stimulate the Business of Tech Startups," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 360-370, May.
    8. M Ashraf Al Haq & Norazlina Abd Wahab & Md. Mahmudul Alam, 2021. "Understanding The Impact Of Institutional Factors On Asnaf Sustainability: A Pls-Sem Approach," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 7(4), pages 759-790, November.
    9. Gerald Chidozie Kwazu & Alice Chang-Richards, 2022. "A tool to assess livelihood preparedness for disasters: a study of Kaikōura earthquake in New Zealand," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 113(1), pages 745-766, August.
    10. Oyedeji, Oluwafemi A. & Babatunde, Rapheal O., 2022. "Analysis of Maize Biomass-based Value Web and Household Livelihood Security in Nigeria," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322201, Agricultural and Applied Economics Association.

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