Hodan Mohamud Abdirahman is a woman entrepreneur living with a disability in Qardho District, Bari Region, Puntland, Somalia. She supports a large household comprising her mother and six siblings, all of whom depend largely on the income generated from her small home-based business.
Before receiving support, Hodan operated a modest shop selling fruits, vegetables, and basic groceries. Despite her determination to support her family, the business generated limited income and offered little opportunity for growth. Her shop lacked sufficient stock and equipment, and she had limited knowledge of financial management, savings, and business planning.
Like many small business owners in the area, Hodan faced challenges beyond her control. Recurrent droughts reduced customers' purchasing power, while rising commodity prices and disruptions in trade routes increased the cost of goods. These challenges made it difficult for her business to expand and adequately support her family's needs.
Her situation began to change when she received support through a production-sector financing initiative implemented by RAAS MFI in partnership with Save the Children Puntland. Following a business assessment, Hodan received a Sharia-compliant business investment of USD 500, repayable through monthly installments over one year. In addition, she participated in financial literacy and business management training that strengthened her entrepreneurial skills, savings practices, and understanding of responsible loan repayment.
"The training taught me how to manage my business, save money, and plan for the future," Hodan explains. "Before, I only focused on selling products, but now I understand how to manage income, profits, and expenses."
Using the investment, Hodan expanded her business from selling only fruits and vegetables to trading a wider range of locally produced agricultural commodities. She now purchases and sells products sourced from Somali farmers, including beans, maize, and sorghum, creating market opportunities for local producers while increasing the diversity of products available to her customers.
She also purchased a refrigerator, enabling her to store and sell fresh camel milk from her family's livestock, reducing spoilage and improving product quality.
"This loan improved my business significantly," she says. "Before, I was only selling fruits and vegetables. Now I sell local products from Somali farmers, including beans, maize, and sorghum, and I use the refrigerator to store fresh camel milk from our livestock."
Despite fluctuations in market demand and increasing competition from newly established shops, the investment has transformed her ability to provide for her household. The additional income has enabled her to contribute more confidently to school fees, healthcare expenses, and other essential household needs.
"One of my biggest worries was paying school fees," she explains. "Today, I can support education, healthcare, and other household expenses with more confidence."
The increased income has also enabled Hodan to cover medical expenses for both herself and her mother. As a woman living with a disability, access to finance and business skills has strengthened her independence and reduced her reliance on others.
She also has maintained regular repayments and has successfully completed five consecutive monthly installments without delay.
"I repay my loan on time because I know that good repayment will allow me to access larger financing in the future and continue expanding my business," she says.
Reflecting on her journey, Hodan believes her experience sends an important message to others living with disabilities.
"I am grateful that I was given this opportunity," she says. "This loan changed my life. Disability is not inability. I run this business, support my family, and create hope for those around me. Anyone can succeed if they are given an opportunity and are committed to working hard."
Today, Hodan continues to grow her business and plans to further expand her investment in locally produced agricultural commodities and livestock products. While challenges remain, she remains determined to build a better future for her family.
