This report describes the process, achievements and learnings of a subproject which set out to identify and demonstrate ways to improve the earnings and socioeconomic status of fisherfolk in coastal communities through group formation and microenterprise development.

The project emphasised the need for group action and better management to make the enterprises successful. The subproject was initiated late in 1987 and terminated in July 1992. It was implemented in three fisherfolk communities (Pulau Kampai, Pangkalan Siata and Pulau Sembilan) in Langkat District, of North Sumatera Province, Sumatera, Indonesia. The subproject initially set out to help establish institution-based credit programmes for fisherfolk, but changed direction when participatory appraisals showed there was really no need for credit supply and the aim of income-generation could be better met through strengthening the creditreceiving mechanism and enabling better and more effective management of enterprises. The subproject mobilized six fisherfolk groups, assisted in promoting savings, helped the groups to set up enterprises, provided credit through revolving funds and helped the groups to build their managerial skills.