Renewal and Support of Livelihoods
September 20, 2010 Chechnya

Renewal and Support of Livelihoods

The project is concerned with supportng small businesses in mountain areas of the Nozhay Yurt region by means of material grants. The project also takes into account business activities’ usefulness in individual villages.

Business activities include breeding of cows for milk, bulls for meat, goats and sheep breeding, farming tools production, car repairs, tailor’s shop, bakery, grocery, greenhouse vegetable growing etc. Support was granted to 500 people.

One of the most pressing problems of contemporary Chechen is the high unemployment, especially in remote villages in the foothill regions. According to information obtained from government sources, as well as from local and international NGOs operating in the Chechen Republic, the unemployment rate is a record 80-90%.

Project grants in the form of material support help to restore the livelihoods by raising funds for small businesses. A direct implementer of the project is a local NGO called the Caucasian Refugee Committee. The preliminary phase of the project included a needs assessment for the small population of Nozhay-Yurt region and the capital city of Groznyj.

The total number of people - both direct and indirect beneficiaries - is estimated at approximately 500. The direct beneficiary is awarded a mini-grant in the form of equipment needed to implement the business. During the selection process, several factors are taken into account: economic situation of families, number, age and structure of family, disabled people, the readiness of the beneficiary's contribution to participate in selected activities - whether it is the know-how or financial or material contribution. The project also takes into account the usefulness of business activities in the villages.

Selected beneficiaries are undergoing a six-day training focused on supporting small business. This training includes: creating a business plan, marketing, taxation and financial analysis. The signing of the contract for mini-grant follows (the average of the EURO 1250). 

The twelve-month project is funded by the European Office for Humanitarian Aid (ECHO). This is the fourth project of Caritas Czech Republic in the North Caucasus that is financially supported by ECHO.