Livelihood Assessment Toolkit

How to Use This Assessment Toolkit

Preparation Phase: Define assessment scope, form mixed team, gather secondary data
Data Collection: Use combination of tools - surveys, focus groups, key informant interviews
Analysis Phase: Complete frameworks, score assets, identify patterns and gaps
Validation: Verify findings with community, cross-check different data sources
Action Planning: Prioritize interventions, develop theory of change, design programs
Monitoring Setup: Establish baseline indicators, plan regular reviews

Time Required: 3-6 weeks for comprehensive assessment | Team: 4-6 people with diverse skills

1. Sustainable Livelihoods Assets Assessment

Five Capital Assets Analysis Framework

Rate each capital on a 1-5 scale for your target community/household. Use multiple data sources and triangulate findings.

1 - Very Poor
Severe constraints

2 - Poor
Major limitations

3 - Fair
Basic level, some gaps

4 - Good
Well-developed, minor gaps

5 - Excellent
Strong, well-utilized

Human Capital Assessment

Education & Skills

Indicator	Score (1-5)	Evidence/Notes
Literacy rates (overall)	____
Women's literacy	____
Technical/vocational skills	____
Digital literacy	____
Entrepreneurial skills	____

Health & Well-being

Indicator	Score (1-5)	Evidence/Notes
General health status	____
Nutritional status	____
Healthcare access	____
Mental health support	____

Human Capital Score: ___/5

Average of all indicators

Natural Capital Assessment

Land Resources

Indicator	Score (1-5)	Evidence/Notes
Land ownership/access	____
Land quality/fertility	____
Land tenure security	____
Common property access	____

Water & Environment

Indicator	Score (1-5)	Evidence/Notes
Water availability	____
Water quality	____
Forest/natural resources	____
Environmental quality	____

Natural Capital Score: ___/5

Average of all indicators

Financial Capital Assessment

Income & Savings

Indicator	Score (1-5)	Evidence/Notes
Income stability	____
Income adequacy	____
Savings capacity	____
Financial planning skills	____

Credit & Financial Services

Indicator	Score (1-5)	Evidence/Notes
Formal credit access	____
Interest rates paid	____
Insurance coverage	____
Digital financial services	____

Financial Capital Score: ___/5

Average of all indicators

Physical Capital Assessment

Infrastructure Access

Indicator	Score (1-5)	Evidence/Notes
Transportation connectivity	____
Electricity supply	____
Communication/internet	____
Market infrastructure	____

Productive Assets

Indicator	Score (1-5)	Evidence/Notes
Tools & equipment	____
Technology access	____
Storage facilities	____
Housing quality	____

Physical Capital Score: ___/5

Average of all indicators

Social Capital Assessment

Networks & Relationships

Indicator	Score (1-5)	Evidence/Notes
Family support systems	____
Community cohesion	____
Professional networks	____
Market linkages	____

Institutional Access

Indicator	Score (1-5)	Evidence/Notes
Group membership (SHGs, etc.)	____
Government scheme access	____
Civil society connections	____
Political representation	____

Social Capital Score: ___/5

Average of all indicators

2. Livelihood Strategy Analysis

Current Livelihood Portfolio Assessment

Map and analyze all income-generating activities, their seasonality, and contribution to household welfare.

Livelihood Activity	Primary Participants	Season/Timing	Income Level	Stability	Growth Potential	Key Constraints
1. _________________
2. _________________
3. _________________
4. _________________
5. _________________

Seasonal Calendar Analysis

Map income, expenditure, and vulnerability patterns across the year:

Month	Primary Activities	Income Level	Major Expenses	Vulnerability Factors
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec

Livelihood Diversification Analysis

Diversification Index: Number of income sources ÷ Total household members of working age = ____

Income Concentration: % of total income from main activity = _____%

Risk Distribution:

□ Activities span different sectors (agriculture, services, manufacturing)
□ Some activities are counter-seasonal
□ Mix of individual and group-based activities
□ Combination of local and external market activities

Diversification Score: ___/5

Based on number of criteria met and overall portfolio balance

3. Vulnerability and Risk Assessment

Risk Identification and Impact Analysis

Risk Type	Specific Risks	Likelihood (1-5)	Impact if Occurs (1-5)	Current Coping Capacity (1-5)	Priority Score*
Climate/Weather	Drought, floods, irregular rainfall	____	____	____	____
Market/Economic	Price volatility, demand changes	____	____	____	____
Health	Illness, injury, disability	____	____	____	____
Social/Political	Discrimination, conflict, policy changes	____	____	____	____
Environmental	Resource degradation, pollution	____	____	____	____
Life Cycle	Aging, family changes, education costs	____	____	____	____

*Priority Score = Likelihood × Impact × (6 - Coping Capacity)

Coping Strategy Assessment

Analyze how households currently manage risks and shocks:

Coping Strategy	Used by HH (%)	Effectiveness (1-5)	Sustainability (1-5)
Borrowing money	____	____	____
Selling assets/livestock	____	____	____
Reducing food consumption	____	____	____
Seeking additional work	____	____	____
Family/community support	____	____	____
Migration (temporary)	____	____	____
Government programs	____	____	____

Resilience vs. Survival Strategy Analysis

Survival Strategies (Negative Coping)

Selling productive assets (land, livestock, tools)
Borrowing at high interest rates
Withdrawing children from school
Reducing food quality/quantity
Engaging in risky/exploitative work

% of households using: ____%

Resilience Strategies (Positive Coping)

Using savings and insurance
Accessing formal credit
Diversifying income sources
Improving skills and technology
Strengthening social networks

% of households using: ____%

4. Market and Value Chain Analysis

Local Economic Environment Assessment

Market Factor	Current Status	Rating (1-5)	Opportunities	Constraints
Local demand for products/services		____
Access to external markets		____
Transportation/logistics		____
Information on prices/opportunities		____
Competition levels		____
Business development services		____

Value Chain Analysis Template

Select 2-3 main livelihood activities and analyze their value chains:

Value Chain: ________________________

Chain Stage	Key Actors	Activities	Value Added	Challenges	Improvement Potential
Input Supply
Production
Processing/Value Addition
Marketing/Trading
Final Consumption

Key Questions:

Where do target households participate in this chain?
What share of final value do they capture?
What prevents them from moving up the value chain?
Where are the biggest opportunities for improvement?

5. Gender and Social Inclusion Analysis

Gender Roles and Livelihood Participation

Livelihood Activity	Men's Role	Women's Role	Decision Making	Income Control	Barriers for Women
Agriculture/Farming
Livestock Management
Non-farm Enterprises
Wage Employment
Migration

Social Inclusion Assessment

Social Group	% of Population	Inclusion Level (1-5)
Scheduled Castes	____	____
Scheduled Tribes	____	____
Other Backward Classes	____	____
Religious Minorities	____	____
Persons with Disabilities	____	____
Elderly	____	____

6. Intervention Prioritization Matrix

Gap Analysis and Priority Setting

Asset/Capacity Area	Current Score (1-5)	Importance for Livelihoods (1-5)	Feasibility to Improve (1-5)	Priority Score*	Rank
Human Capital	____	____	____	____	____
Natural Capital	____	____	____	____	____
Financial Capital	____	____	____	____	____
Physical Capital	____	____	____	____	____
Social Capital	____	____	____	____	____
Market Access	____	____	____	____	____
Risk Management	____	____	____	____	____

*Priority Score = (6 - Current Score) × Importance × Feasibility

Intervention Design Framework

Top 3 Priority Areas for Intervention

Priority 1: ________________________

Intervention Type	Specific Activities	Target Groups	Timeline	Expected Outcomes
Individual Level
Household Level
Community Level
System Level

Priority 2: ________________________

Priority 3: ________________________

(Use same framework for additional priorities)

7. Data Collection Tools

Recommended Data Collection Methods

Quantitative Tools

Household Survey: Assets, income, expenditure, demographics
Livelihood Profile Questionnaire: Activities, seasonality, risks
Market Price Survey: Input costs, output prices, price trends
Infrastructure Assessment: Physical capital availability and quality

Qualitative Tools

Focus Group Discussions: Community perceptions, social dynamics
Key Informant Interviews: Market actors, service providers, leaders
Life History Interviews: Individual livelihood trajectories
Participatory Rural Appraisal: Community mapping, ranking exercises

Participatory Tools

Seasonal Calendar: Community creates annual activity timeline
Resource Mapping: Visual representation of assets and access
Problem Tree Analysis: Identify causes and effects of livelihood challenges
Opportunity Assessment: Community prioritizes potential interventions

Data Quality Checklist

□ Mixed methods used (quantitative + qualitative)
□ Representative sample across different groups
□ Gender-disaggregated data collected
□ Seasonal variations captured
□ Multiple sources triangulated
□ Community validation conducted
□ Ethical considerations addressed
□ Data management plan in place

8. Assessment Summary Dashboard

Livelihood Assessment Summary

Asset Capital Scores

Capital Type	Score (1-5)	Ranking
Human Capital	____	____
Natural Capital	____	____
Financial Capital	____	____
Physical Capital	____	____
Social Capital	____	____

Key Findings Summary

Most Vulnerable Groups: ________________________

Highest Priority Risks: ________________________

Strongest Assets to Build On: ________________________

Biggest Market Opportunities: ________________________

Critical Intervention Areas: ________________________

Recommended Action Plan

Immediate Actions (0-6 months): ________________________
Short-term Interventions (6-18 months): ________________________
Medium-term Development (1-3 years): ________________________
Long-term Transformation (3+ years): ________________________