Identification of income-generating activities (IGAs)

Proposals and development of IGA projects take place after the AVEC has been in operation for one year, in order to ensure that the group is cohesive. Meetings are organized with the AVECs to list the IGA proposals they would like to undertake. It's important to emphasize that the approach used must be down-top (proposals are not imposed by the project), in order to reinforce the adhesion and appropriation of the project by the members. On the basis of their proposals, an analysis is made to identify the activities best suited to the local context.

Financial planning is important and can help to improve the business, as it indicates whether or not profits can be made and requires improvement within the group. Two plans are imperative for business planning:

-The sales and costs plan (making a monthly forecast of sales and costs for the year).

-The cash flow plan (helps you to know in advance each month's cash inflows and outflows, and provides assurance of its availability).

  • Orienting the choice of AGRs with short production runs
  • IGAs must have a low investment rate
  • Let communities choose IGAs according to their social context
  • The opinion of all those involved must be taken into account to avoid any future inconvenience in the event of failures during the implementation phase.