Supporting Vendors’ Access to Capital in Crisis-Affected Markets

Supporting small-scale entrepreneurs’ access to capital is a common component of livelihoods programs in both humanitarian and development contexts. When designed with market systems in mind, these programs could improve both vendor- and market-level outcomes. The IRC tested one such approach by providing cash grants or facilitating access to loans for vendors in Dangorayo, Puntland State, Somalia. The research structured around the program aimed to answer two questions:

1. How does access to financial services – whether through direct cash assistance or linkages to formal financial service providers – impact vendor- and market-level well-being? What are the potential mechanisms behind such impacts
2. How do different subgroups of market actors (e.g., small vendors, medium vendors, women, etc.) benefit from access to financial services?