Mohamed Sheikh Gudoow, a trader and a father of five, serving a customer at his shop in Sigaale Market

From survival to success

ILO training sparks a new generation of entrepreneurs in Baidoa, Somalia

In Baidoa, Somalia, small traders are transforming their livelihoods through the International Labour Organization’s Improve Your Business (IYB) training. Once focused solely on day-to-day survival, 100 local entrepreneurs, including women like Sumayo Adan Mohamed, are now mastering bookkeeping, marketing, and customer care. The program, part of ILO’s initiative to create decent work for IDPs, returnees, and host communities, has sparked a shift from informal, unrecorded trade to structured, growth-oriented enterprises. With many participants now pursuing business registration and applying strategic planning, Baidoa’s traders are proving that with the right skills and support, small businesses can thrive, and local economies can grow stronger.

7 October 2025

Mohamed Sheikh Gudoow, a trader and a father of five, serving a customer at his shop in Sigaale Market © ILO/KFW

Baidoa, Somalia (ILO News) - It is mid afternoon and at the busy Siigaale Market, 28-year-old Sumayo Adan Mohamed, a female trader, juggles between serving her customers and carefully jotting down figures in a cherished notebook. She has done this for a few days as book-keeping is one of the skills she acquired from a recent entrepreneurship training organized by the International Labour Organization (ILO).

A general view of a busy trading centre in Baidoa, South West Regional State in Somalia
© ILO/KFW
© ILO/KFW
A general view of a busy trading centre in Baidoa, South West Regional State in Somalia

“I faced many challenges in running my business, including managing expenses, profits, and cash flow,” she explained. “After the two-week training, I gained valuable insights, such as separating accounts and expenses, which makes accountability much easier.”

Participants at ILO supported training for selected traders in Baidoa
© ILO/KFW
© ILO/KFW
Participants at ILO supported training for selected traders in Baidoa

The training was part of ILO’s project in Baidoa “Creating decent opportunities for IDPs, returnees and local host communities” and Sumayo is not alone in this transformation journey. She is one of 100 small traders in Baidoa, 95% of whom had never received formal business training, who took part in the program. For many, the daily reality was simple: earn just enough to survive until the next day. The idea of writing a business plan, tracking expenses, or strategically attracting customers seemed like a far-off dream, overshadowed by the urgency of survival.

How business training is changing lives in Somalia’s Baidoa market

Across the lively, chaotic market, where the aroma of spices mingles with the dust of busy streets, another beneficiary, Mohamed Sheikh Gudoow, a father of five, sells biscuits and sweets. He describes his transformation vividly:

“Previously, many things went unaccounted for, I used to run my business casually. Now I can track everything properly, including things I never noticed before.”

Mohamed Sheikh Gudoow, a trader and a father of five, serving a customer at his shop in Sigaale Market
© ILO/KFW
© ILO/KFW
Mohamed Sheikh Gudoow, a trader and a father of five, serving a customer at his shop in Sigaale Market

The six-day training, tailored for 100 local entrepreneurs (60 men and 40 women), introduced participants to the Improve Your Business (IYB) program. Delivered through practical, hands-on sessions, it offered not just knowledge but also a rare opportunity. Traders discovered the value of written records, the profit hidden in a well-thought-out plan, and the confidence to compete in a demanding marketplace.

An impact assessment report prepared by the trainers revealed that most participants previously relied on manual, inconsistent, or non-existent financial records, limiting their ability to access credit and obscuring true profitability. It also highlighted weaknesses such as “low customer retention,” “poor service delivery,” and the absence of “distinctive branding.”

For Amina Mohamed, the training was a turning point:

“I never thought I could outcompete someone in business... but now I know how to do it,” she said, her newfound confidence grounded in the Marketing, Customer Care, and Branding module.

Abdiftah Salad Omar, one of four certified SIYB trainers, underscored the core mission:
“The main goal was to help participants develop effective strategies for their businesses and implement proper record keeping.”

Abdiftah Salad Omar-one of four certified SIYB trainers- explaining a point to a group of trainees during one of the group discussions
© ILO/KFW
© ILO/KFW
Abdiftah Salad Omar-one of four certified SIYB trainers- explaining a point to a group of trainees during one of the group discussions

One of the most significant outcomes was a shift in how entrepreneurs viewed business formalization. According to the report, 78% of participants understood the process of formal registration for the first time. Importantly, 65% agreed that formalization would increase their chances of expansion, and 22 traders had already initiated discussions with the Business Development Association (BDA) to begin registration. This marked a critical shift, from viewing formality as a burden to recognizing it as a strategic investment.

For Baidoa’s entrepreneurs, this is only the beginning. Thanks to ILO’s support, they are no longer simply running businesses to survive, they are building enterprises to thrive. From a simple ledger book to a sharper competitive edge, these traders are moving from day-to-day survival toward long-term strategy, rewriting their futures and strengthening the resilience of Baidoa’s local economy.

About the Project:

The International Labour Organization (ILO) with the implementation support of AMAS Royal Limited is empowering communities in Baidoa by helping vulnerable groups turn small businesses into sustainable livelihoods. The initiative is opening doors for IDPs, returnees, and host communities by building entrepreneurial skills, strengthening micro-enterprises, and connecting local traders to new market opportunities. Through practical short-course interventions such as the Improve Your Business (IYB) program, the initiative targets vulnerable traders, women and men, providing hands-on training in bookkeeping, marketing, customer care and business planning, while linking participants to local business development services to encourage registration, access to credit and longer-term growth. By combining skills development with follow-up engagement and local partnerships, the project seeks to move households from day-to-day survival toward resilient, growth-oriented livelihoods that strengthen Baidoa’s local economy.