BASELINE ASSESSMENT STUDY FOR YOUTH IN SANA A & HAJJAH

Transcription

1 BASELINE ASSESSMENT STUDY FOR YOUTH IN SANA A & HAJJAH CONDUCTED FOR TOWARDS BETTER ECONOMIC OPPORTUNITIES FOR YOUTH PROJECT By Adnan Qatinah March 2014 Page 1 of 55

2 TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION Background and Objectives Methodology CONTEXT Yemen Economy Overview of Sana a and Hajjah Sana a Hajjah Governorate FINDINGS Demographic Characteristics Youth Entrepreneurship or self-employment Availability of Vocational and Entrepreneurship Education Opportunities Satisfaction of the training Access barriers to skills training Enterprise/business and financial skills and knowledge among youth Training need Support Services that enable entrepreneurship Types of businesses run by young entrepreneurs Seed funding accessibility Policy/supportive environment for youth entrepreneurship Perceptions and attitudes around youth entrepreneurship & self-employment CONCLUSIONS AND RECOMMENDATIONS ANNEX 1: MONITORING AND EVALUATION PLAN ANNEX 2: LIST OF ORGANIZATIONS INTERVIEWED ANNEX 3: TERMS OF REFERENCE ANNEX 4: SURVEY QUESTIONNAIRE Page 2 of 55

3 List of Tables Table 1: Data distribution, Sources of Data and Number of Participants Table 2: Questionnaire sample Table 3: youth participation in FGDs Table 4: In-depth interviews Table 5: Population for selected districts in Sana'a Table 6: Population for selected districts in Hajjah Table 7: Age, Marital Status and Education Table 8: Respondents received vocation and entrepreneurship training in Sana a and Hajjah Table 9: Vocational and Technical Institute in Sana a Table 10: Vocational and Technical Institute in Hajjah Table 11: Organization and Entrepreneurship Training Modules Table 12: Business skills rate among youth Table 13: Training needs Table 14: Training Needs Table 16: Type of businesses run by young entrepreneurs Table 17: Perceptions and attitudes around youth entrepreneurship and self-employment Table 18: Community perceptions towards entrepreneurs List of Figures Figure 2: Respondents Received Training Figure 3: Satisfaction of the training Page 3 of 55

4 Acronyms and abbreviations CAC CHF CSO FGDs GDP GIZ IFC ILO IMF M&E MFIs MSEs MTEVT NGO SFD SMEPs SOUL TEVTA TVET UNDP UNICEF Cooperative and Agricultural Cooperative Bank Global Community Central Statistics Organization Focus Group Discussion Gross Domestic Production Gesellschaft für Internationale Zusammenarbeit (German International Cooperation) International Finance Corporation International Labour Organization International Monetary Fund Monitoring and Evaluation Microfinance Institutions Micro and Small Enterprises Ministry of Technical Education and Vocational Training Non-governmental Organization Social Fund for Development Small and Micro Enterprise Promotion Service Local Yemeni NGO Technical Education and Vocational Training Authority Technical and Vocational Education and Training United Nations Development Programme The United Nations Children's Fund Page 4 of 55

5 EXECUTIVE SUMMARY Towards Better Economic Opportunities for Youth Project is a joint collaboration between ROTA, Silatech and CARE International which aims to allow youth realizing their entrepreneurial potentials through investing in human capital and promoting an enabling environment in seven selected districts in Sana a (Ma een, Sa awan, Bani Al-Harith) and Hajjah governorate (Hajjah City, Abbs, Aslam, Khiran). This baseline study comes as part of the project s preparatory stage to assess and give a picture about the youth entrepreneurship situation in Yemen, particularly in Sana a and Hajjah, and to set benchmarks against performance indicators identified in the project design. It will also be used as a foundation to conduct monitoring and evaluation. The study seeks to identify entrepreneurs of necessity, determine appropriate age group, important stakeholders, level of educational/non-formal education, level of engagement in entrepreneurship education, entrepreneurship and vocational training needs of youth, accessibility to and equity of information and support services, policy/supportive environment for youth entrepreneurship, perceptions, barriers, challenges and opportunities relating to youth selfemployment and entrepreneurship in the seven target districts in both Sana a and Hajjah. The study was conducted in February-March It employed both quantitative and qualitative data collection tools including a questionnaire survey of 307 youth aged between years, were selected randomly and intentional focus on poverty areas within target districts and muhamasheen (186 from Sana a, 121 from Hajjah), 6 Focus Group Discussions with youth of the six selected districts (3 selected districts in Sana a; Ma een, Sawan and Bani AlHarith, and 3 selected districts in Hajjah: Hajjah City, Khiran and Aslam), some 88 interviews with key informants (61 from Sana a, 27 from Hajjah), and supplemented by a desk review of available studies, data and documentation. Findings Yemen is classified as one of the least developed countries and the poorest in the region. More than 55% of the population live below the poverty line, and 40% estimated youth unemployment (IMF, 2013). The education system is weak, and is not adequate to prepare youth with the skills required to be self-employed, and access to the necessary entrepreneurship knowledge and skills. The study has covered sever selected district in Sana a and Hajjah governorates. Sana a is the political and administrative Capital of Yemen, and hub of important economic and commercial activities. The Capital Sana a consists of 10 districts; the study covered three districts including Ma een, Sawan and Page 5 of 55

6 Bani Al-Harith. It has more than 30% of industrial establishments in Yemen and concentration of high commercial and services activities, however, around 15% of population are poor (UNDP, 2013), and 40% youth unemployment. Hajjah Governorate is located in the northwestern part of Yemen, and most of the population lives in the rural areas. It consists of 31 districts, and the study covered four districts including Hajjah City, Abbs, Aslam and Khiran. In addition, Hajjah is unique for its topography and weather diversity ranging, and has a distinct commercial business shown in the transport and trade activities through the port of Haradh, which is one of the most important customs ports in Yemen. Furthermore, there are some important metals such as gold, copper, nickel, cobalt, marble, feldspar and quartz. Moreover, Hajjah is agriculturebased economy with nearly 80% of jobs are generated by farming activities. The governorate produces various types of cereals, fruits, cash crops and vegetables plus other sectors like trade, livestock, bee keeping and fishing. This diversification suggests better economic advantages compared to other governorates. However, 55% of the population is poor and most of them are suffering food insecurity. Unemployment rate is also high with 40%, most of them are youth. The study findings indicate that only 11% of the respondents are working and have their own enterprises, male represents 77%, and female 23%. More than 60% of the enterprises located in Sana a, while 40% located in Hajjah. Furthermore, the majority of the youth enterprises were trade and services, whereas handicrafts and agriculture enterprises are less. Furthermore, 89% of the young respondents wish/plan to start a business. However, they had not started a business due to different reasons including lack of entrepreneurship skills and lack of appropriate funding. On the other hand, have access to information on how to start a business and be able to get appropriate funding are the main reasons which would encourage youth to starting a business. Availability of vocational and entrepreneurship training is limited, This study found that 28% of the youth respondents in Sana a and Hajjah had received some sort of vocational and entrepreneurship training skills such as business development skills, soft skills training, handicrafts and tailoring. There are 10 government vocational training centers in Sana a and 5 in Hajjah providing different training courses including mechanics, carpentry, electricity, hairdresser, tailoring and designing, handicrafts, Administrative, Computer. In addition, number of private sector and NGO skills training providers exist offering training programs, particularly in computer, English language, marketing, management, and few technical areas such as tailoring and handicrafts. Some of international of local NGOs provide entrepreneurship training such as UNDP, Silatech, CHF, ILO, IFC, GIZ and SOUL. Page 6 of 55

7 The capacity of the government vocational and technical training institutions is weak, and has a shortage of trainers. In addition, most of the institutions have inadequate infrastructure, outdated equipment and low quality training facilities. Moreover most institutes do not offer transport facility to their students, though some institutes are far away. For most women, social barriers in terms of mobility also limit their access to these institutions in addition to the extra costs. The new institute in Hajjah, for example, is being constructed outside the city, which will create accessibility issues for girls. Most of the respondents in the survey are satisfied due to different reasons, including: 1) training courses were market- oriented meaning there is high demand for these skills in the labor market; 2) the participatory methodology used during training; 3) qualified trainers; 4) training materials were easy to understand and implement; 5) training was free of charge; 6) international certificate distributed to participants. On the other hand, some of them are dissatisfaction due to: 1) training was expensive; 2) the training curriculum was more theoretical than practical; 3) no specific objectives set for the training; 4) the training was long. The study found among those who had never received any training, 29% of them attributed this to lack of opportunity, 19% due to lack of information, 11% cited economic barriers, 11% said they were not interested, 8% said training needed was not available, 7% due political unrest, 6% lack of time and 4% ethnic barriers prevented them from receiving any kind of training. Most of the respondents need to have training in enterprise/business development skills, computer training, soft skills training (leadership, communication, influencing, inclusion/integration, sense of initiative, autonomy, creativity, and teamwork) and financial literacy training. Across vocational training, they need tailoring, electrician, mechanics, hairdressing and beekeeping. Furthermore, most the respondents prefer to have the training at afternoons. Support services, including government, that enable entrepreneurship in Yemen are very limited. There are some attempts by INGOs, NGOs and local agency to provide support services, such as microfinance, mentoring and coaching services; however it is still in a very small scale. Moreover, there is no youth entrepreneurship hub or network in the target governorate. Page 7 of 55

8 The study resulted in the following key recommendations: 1. Create and Implement an integrated enterprise development programme including vocational and entrepreneurship training, supporting services and enhancement the enabling environment for entrepreneurship and self-employment; 2. Develop training skills for the target youth group including entrepreneurship skills, financial literacy and vocational training (cell phone and motorcycles maintenance, electrician, hairdressing, handcrafts, beekeeping, cooking and catering service); 3. Linking the target youth to microfinance, mentorship, internship and advisory service providers, and create hubs jointly with NGOs or government vocational institutes in the target districts to provide support services; 4. Enhancing the connection between the youth entrepreneurship and stakeholders, and create youth entrepreneurship network in the target districts. 5. Youth aged years was more desiring and willing to start up an enterprise and need training to achieve that. it is recommended to focus in this age group; 6. Have more diversification of the implementation partners, therefore, work with government vocational training institutes, NGOs and private training providers; 7. Take advantage of training manuals that have already designed and developed by SOUL, UNDP, CHF and TEVTA. Moreover, that may need reviewing or customization by CARE to be more appropriate with the target group; 8. Create a mechanism that encourages the target group to participate and complete the whole cycle of the training and to display more commitment. The mechanism could be giving the participants small amount of money as transportation. 9. Given the diversity in the market context in the target districts, particularly across the different geographical locations, the project may consider introducing different courses to vocational and business training institutes in the target districts that combine both the local market demands and building on the local skill sets; 10. When designing and implementing training courses and supporting services, take into consideration the sensitivity of young females and Muhamasheen situation, particularly the venue of training, duration of the training program; length of courses and/or financial assistance for longer training programs should be made available to attract them; 11. Develop the capacity of their staff and trainers in delivering short courses and project activities. The support should also include improvement and expansion of equipment and facilities, which related to the training and supporting services; Page 8 of 55

9 12. Analysis of the present situation in the target districts communities indicate that the foremost challenge for the projects might be to encourage the target group, particularly the women and Muhamasheen, to think entrepreneurially, analyzing their situation and identifying income generating activities in each districts they might be able to take on successfully. A necessary precondition for the project team to consider, therefore will be encouraging an entrepreneurial attitude among the target communities in order to ensure successful take-up of newly established enterprises; 13. Create hubs jointly with NGOs in the target districts to provide support services such as mentorship, internship and advisory service providers; 14. Extend the scope of support services to enhancing the connection between the youth entrepreneurship and stakeholders, and create youth entrepreneurship network in the target districts; 15. As for the baseline assessment, it is important that all monitoring and evaluation activities, outcome and impact assessment efforts to collect data that allow the analysis on how well the program is working for the target youth. Page 9 of 55

10 1. INTRODUCTION 1.1. Background and Objectives Towards Better Economic Opportunities for Youth Project is a project in partnership with ROTA and Silatech and implemented by CARE International in Yemen. It seeks to empower youth to realize their entrepreneurial potentials by providing an enabling environment for them in seven selected districts in Sana a and Hajjah governorates. By doing so, they will get to gain skills and knowledge needed for self-employment and entrepreneurship, avail themselves of the access to information and support services about entrepreneurship and to be able to harness existing local resources. The project anticipates also advocating for an enabling environment for the youth, better self-employment, good practice and promoting the likelihood of having more entrepreneurial opportunities as identified. The project will be implemented in seven selected districts three of them in Sana a (Ma eein, Sawan, Bani Al-Harith) and four in Hajjah (Hajjah City, Abbs, Aslam, Khiran). The target group is youth population; especially entrepreneurs of necessity particularly those who belong to underprivileged groups including females in rural areas and marginalized communities. The project four outcomes are as follows: - Outcome 1: 1100 youth gain the skills and knowledge needed for self-employment and entrepreneurship in Sana a and Hajjah by the end of the project. - Outcome 2: 1000 youth have access to information and support services for entrepreneurship, and are able to harness existing local resources in Sana a and Hajjah by the end of the project. - Outcome 3: Youth advocate for an enabling environment and self-employment - Outcome 4: Good practice and replication potential identified in Sana a and Hajjah by the end of the project. Under each outcome, some indicators were set during the design/proposal stage. A number of these indicators are suggested to be revised during the process of this study and prior to the development of data collection instruments. The matrix listing the programme outcomes and the final indicators can be found in Annex2. This baseline study was carried out as part of the project preparatory stage with the objective to assess and give a picture about youth entrepreneurship situation in Yemen and set benchmarks against performance indicators identified in the project design. The study will be used as a basis Page 10 of 55

11 to conduct monitoring and evaluation. It seeks to identify entrepreneurial skills, vocational and technical training needs by youth, barriers, challenges and opportunities in relation to youth employability and self-employment covering seven target districts in Sana a and Hajjah. The key objectives of the baseline assessment as described in Term or References (Annex 1) seek to; 1) Determine the baseline status on the outcome and output indicators and review the programmer s log frame as per the proposal document; 2) To review the relevance, feasibility and target setting of indicators established in the programme s log frame; 3) To develop and finalize a Monitoring & Evaluation plan for the programme Methodology The present study employs both quantitative and qualitative tools to collect data. After gaining a general understanding of youth entrepreneurship situation in Sana a and Hajjah, the main tools used in this study were questionnaire survey to the youth, and a number of Focus Group Discussions (FGDs) were conducted with the targeted youth to have more understanding of youth entrepreneurship situation and validate the questionnaire results, and in-depth interviews with key informants and Stakeholders involved in youth entrepreneurship. Number of respondents were summarized in Table 1 below. Table 1: Data distribution, Sources of Data and Number of Participants Sana a Hajjah Ma een Sawan Bani Hajjah Total Abbs Aslam Khiran AlHarith City Questionnaire FGDs In-depth interviews Total The methodology followed a highly consultative and participatory approach with the CARE project s team engaged at all stages of the study. The study framework and tools were designed following extensive consultations between the expert and CARE project s team. The field work for primary data collection commenced soon after approving data collection tools and field plan by CARE project s team. Field activities were also carried out under support by CARE and the research teams in Sana a and Hajjah. Page 11 of 55

12 Survey To conduct the baseline survey, a questionnaire was developed, tested (in Sana a, with 15 youth from the target group) and carried out in the seven selected districts four in Sana a (Ma een, Sawan, Bani Al-Harith) and three in Hajjah (Hajjah City, Abbs, Aslam, Khiran). The total survey respondents were 307 youth falling within the age group representing 28% of the target beneficiaries. As shown in Table 2, males make up for 59% out of the total respondents while female represent 41%. The sample was selected using a pre-defined group with specific parameters, such as marginalized group, which represent almost 30% of the survey sample, and geographical cluster sampling method combined with random sampling considering gender parameters. The questionnaire survey was designed to cover detailed demography and general information about the target group. In addition, it aimed to identify the key challenges and barriers in access to vocational and entrepreneurship training skills, access-related perceptions, quality and relevance of the programs, available youth vocational and entrepreneurship training needs assessment, youth entrepreneurship or self-employment patterns, barriers to start up business, perceptions and attitudes around youth entrepreneurship & self-employment (Annex 3). The actual sample surveyed for Sana a was found more than the plan due to delay in field visit approvals to Hajjah, while the actual sample surveyed for Hajjah was found the same with plan, number of respondents are summarized in table 2 below. Table 2: Questionnaire sample Sana a Hajjah % Gender Bani Al- Hajjah Total Ma een Sawan Abbs Khiran Aslam Harith City Male % Female % Total % Focus Group Discussions To complement the quantitative data and to have more understanding of youth entrepreneurship situation and validate the questionnaire results, 6 FGDs (3 in Sana a, and 3 in Hajjah) were organized with youth in age group in the selected districts. A total of 66 participants took part in the FGDs, Muhammasheen (Marginalized group) represents 35% or the participants. Abbs Districts could not be covered through FGD due to time constraints and Project team advice. A summary of the number of FGD participants by the district and sex is given in Table 3 below. Page 12 of 55

13 Table 3: youth participation in FGDs Governorate District Male Female Total Sana a FGD 1 Ma een FGD 2 Sawan FGD 3 Bani Al-Harith Hajjah FGD 1 Hajjah City FGD 2 Khiran FGD 3 Aslam Total Key Informant Interviews To identify important Stakeholders, policy/supportive environment for youth entrepreneurship, perceptions and attitudes around youth entrepreneurship and self-employment, and youth entrepreneurship situation, 88 in-depth interviews were conducted with relevant government authorities, TVET institutes, service providers (CBO providers, UN, INGOs, NGOs, MFIs), private sector, number of TVET graduates, trainers and parents. The list of organizations interviewed is shown in Annex 3 while types of organizations interviewed are summarized in Table 4 below. Table 4: In-depth interviews Service provider government No. of short (CBO providers, authorities Private Governorate interviews with Parents Total UN, INGOs, (TVET), sector TVET graduates NGOs), MFIs trainers Sana a Hajjah Total Data Entry and Analysis A spreadsheet was used to enter quantitative information which were then coded processed, and analyzed using the STATA 11 statistical analysis software. In addition, graphs used in this report were prepared using excel and based on STATA outputs. Limitation of the research Time constraint was a limiting factor. The study focused on youth living in seven selected district in Sana a and Hajjah within different education level and age (15-35). The youth selected for the study were randomly and who were willing to spend time to fill the questionnaire, focusing in the poor people and marginalize group. Some of youth illiterates and marginalized group have avoided to participate in the survey, although the researchers offered assistance, however their voice and opinion was included in the interviews and FGDs. Limited availability of secondary information on the social- socio-economic situations, unemployment, poverty on the districts level. Page 13 of 55

14 2. CONTEXT 1.2 Yemen Economy Yemen is classified as one of the least developed countries and the poorest in the region, ranking 160 of 187 in Human development index (UNDP, 2013). Yemen s total population is nearly 25.4 million the majority of which are young people (World Bank, 2013) with growth rates of 3%, among the highest in the world. According to the Central Statistical Organization (2012), youth in Yemen aged represent 38% of the total population. Meanwhile, the age group represents 12%, year olds group account for 11%, the cohort makes up for 9% and those aged constitute 7% of the population. Population settlements are widely dispersed with 75% of the overall population live in rural areas. Additionally, literacy rates stand at 96% among young males (15-24) compared to 74% among females in the same age group. Furthermore, access to primary school increased significantly during the last decade, raising net primary enrollment rates to 97% (UNICEF, 2013). Yemen s economy relies heavily on oil and the industry sector - mainly oil and gas- contributed more than 25.4% of the GDP in 2012 and 70% of government revenues. Agriculture sector, for its part, contributed 15.7% against 58.6% by the services sector (Central Bank of Yemen, 2012). Furthermore, Yemen has limited natural resources, most notably scarcity of water and limited arable land (3% of total land area). More than 55% of the population live below the poverty line (IMF, 2013), with $ 1,270 GDP per capita in 2012, and estimated youth unemployment of 40% (IMF, 2013). Muhammasheen (marginalized group) also faces different challenge including lack of education, lack of employment, and limited access to health services, and lack of basic social services. Unemployment and poverty rate among Muhammasheen are very high, there is no official figures but according the key informants interviews and FGDs, they expected to be more than 55%, and most of them earn their living by performing dirty jobs such as sweeping, cleaning, collecting plastics, or begging mainly women. Entrepreneurship and vocational training are considered as a way to support these youth to pursue opportunities for sustainable self-employment. However, education in Yemen is not adequate to prepare young people with the skills required to be self-employed and access to the necessary knowledge and skills for enterprise is very limited. Page 14 of 55

15 2.2 Overview of Sana a and Hajjah Sana a Sana a is the political and administrative Capital of Yemen with an estimated population of about 2.2 million (2012) and annual growth rate at 3%. Sana a population represent 9% of total population, making it the largest city in Yemen. Males represent 55% while females 45% of the population. Likewise, the country youth population trend is that youth (15-35) years constitute 38% of the total population. Sana a is a hub of important economic and commercial activities. It has more than 30% of industrial establishments in Yemen and concentration of high commercial and services activities (World Bank, 2007). As the capital city of Yemen, 40% of jobs in Sana'a are in the public sector. Other primary sources of formal employment in the city include trade and industry. Sana'a has a large informal sector estimated to contribute 32% of nongovernmental employment. However, and given the lack of variety of jobs in Sana'a as compared to other governorates in Yemen, around 15% of population are poor (UNDP, 2013), and 40% youth unemployment. Poor education level, lack of skills, lack of work experience, and lack of employment services are the main employment challenges that youth face in Sana a. The Capital Sana a consists of 10 districts; the study covered three districts including Ma een, Sawan and Bani Al-Harith (see Table 5). Table 5: Population for selected districts in Sana'a Ma een Sawan Bani-Al-Harith Population* 346, , ,742 Male* 56% 54% 53% Female * 44% 46% 47% Sources: * Estimated by the researcher based on the 2004 Census using the district s annual growth rate of 3%. * Central Statistics Organization, Muhammasheen is in different districts in Sana a mainly in Sawan, Bani Al-Harith and Ma een. Lack of education and high unemployment are the most critical problems affecting them. Furthermore, they earn their living by performing dirty jobs or begging mainly women. Page 15 of 55

16 Hajjah Governorate Hajjah Governorate is located in the northwestern part of Yemen, 127 kilometres northwest of Sana'a, at an altitude of about 1800 meters from the sea level. According to Central Statistical Organization (2012), Hajjah governorate has a population of 1,889,000 representing 7.5% of the total population of Yemen with an annual growth rate of 3%. Males represent 52% while females 48% of the population. More than 91% of the population lives in the rural areas. Hajjah is unique for its topography and weather diversity ranging from mountainous, plains and coastal to small islands. Hajjah is the cross trading border with the Saudi Arabia, so it has a distinct commercial business shown in the transport and trade activities through the port of Haradh, which is one of the most important customs ports in Yemen. Furthermore, there are some important metals such as gold, copper, nickel, cobalt, marble, feldspar and quartz. This diversification suggests better economic advantages compared to other governorates. However, 55% of the population is poor and most of them are suffering food insecurity. According to United Nation, World Food Program (2013), over 53% of Hajjah population are moderately or severely food insecure with some of the worst nutrition indicators in the country because 47% of children suffer underweight. Likewise, unemployment rate is high, and according to local council, estimated unemployment rate stands at 25%, most of them are youth. Very poor education level, lack of skills, lack of work experience, and lack of employment services are the main employment challenges that youth face in Sana a. Hajjah is agriculture-based economy with nearly 80% of jobs are generated by farming activities. The governorate produces various types of cereals, fruits, cash crops and vegetables plus other sectors like trade, livestock, bee keeping and fishing. Hajjah Governorate consists of 31 districts, and the study covered four districts including Hajjah City, Abbs, Aslam and Khiran (see Table 6). Table 6: Population for selected districts in Hajjah Hajjah City Abbs Aslam Khiran Population 70, ,610 64,230 58,402 Mela 53% 52% 51% 51% Female 47% 48% 49% 49% Sources: * Estimated by the researcher based on the 2004 Census using the district s annual growth rate of 3%. * Central Statistics Organization, Page 16 of 55

17 3. FINDINGS 1.1. Demographic Characteristics Age: As shown in Table 7 below, the age cohort years represents 20%, years represents 26%, the age group years represents 29% and those aged years constitute 25% of the respondents. Regarding marital status of the survey respondents, 53% of the respondents were single (57% males, 43% females) while 45% were married (63% males, 37% females). As for the age group, 8% of those aged years were married compared to 93% among the age group years. Table 7: Age, Marital Status and Education Gender Row Age Male (n=182) Female (n=125) Total (n=307) % 20% 20% % 30% 26% % 30% 29% % 20% 25% Marital Status Single 51% 56% 53% Married 48% 42% 45% Divorced 1% 2% 1% Widowed 0% 1% 0% Education University 25% 26% 25% High School 40% 43% 41% Vocational Diploma 8% 4% 7% Elementary School 15% 11% 13% Read and Write 7% 4% 6% Illiterate 5% 12% 8% Education: Regarding the education level, being one of the determining variables for one s economic performance, the study found that 41% of the respondents are high school graduates (53% in Sana a, 47% in Hajjah) while 25% university degree holders or studying in the university (82% in Sana a, 18% in Hajjah, mainly in Hajjah City), 13% attended elementary school, 7% are having vocational diplomas (70% in Sana a, 30% in Hajjah), 8% are illiterate (44% in Sana a, 56% in Hajjah mainly in Abbs, Aslam and Khiran Districts) and 6% can read and write. The result illustrates the fact that education in Yemen expanded widely in the last three decades. Therefore, Page 17 of 55

18 the target age groups which cover in this study (15-35) had more access to the education, and the illiterate percentage among this group is less than the old groups. The educational status was further underlined during the FGDs in all the study sites. 30% of the FGDs participants can read any write and 20% are illiterate mainly from marginalized group, while 28% attended elementary school, 14% have high school, and 7% have or still study in the university. Participants confirmed to be highly motivated to continue their education but citing lack of opportunities in the regular educational system because they regard regular education as poor and does not give them a chance to enhance their employability. Therefore, a significant number of participants expressed the need for vocational training and business skills Youth Entrepreneurship or self-employment The study findings indicate that only 11% of the respondents have their own enterprises, male represents 77%, and female 23%. More than 60% of the enterprises located in Sana a, while 40% located in Hajjah. Furthermore, the majority of the youth enterprises were trade with 34% such as Cell phones shop, retail shop, grocery shop, clothing shop, Electronic devices shop, vegetables and fruits shop, 24% of the youth enterprises are services such as tailoring, internet cafe, restaurants, cafeterias, repair workshops, carpentry workshop, mechanic workshop, taxi and bus driver, whereas handicrafts represent 17% for the youth business mainly female and 6% of them are agriculture enterprises such as beekeeping. During in-depth interviews and FGDs, we found small and micro business sector in Sana a and Hajjah is mostly retail trading, restaurants and cafeterias, grocery stores, repair workshops and handicrafts. Most of the self-employed women in Sana a and Hajjah are engaged in stitching and tailoring. They mostly receive work orders from neighbors, family and friends. Few numbers of Muhammasheen has micro or small business mostly in mobile vendor, shoemaker and collecting plastics. During the interviews with entrepreneurs, we identify that most of them do not have entrepreneurship skills. For young females, various factors underline this limited application of the entrepreneurship model i.e. limited mobility, lack of access to business support services (such as financial services, marketing services and consulting services), social-cultural factors continuing gender stereotypes as well as lack of the requisite skills set, such as business development skills, marketing, financial literacy knowledge and skills. Similarly, for young males is that of self- Page 18 of 55

19 initiated income generating activities, lack of requisite entrepreneurship skills and capital seem to be the most reasons limiting business growth and potential. The study findings revealed that 89% of the young respondents wish/plan to start a business (64% males and 36% females). Among who wish/plan to start up an enterprise, 29% for the cohort years and 28% within years, while and years were less with 22%, and 21% respectively. Despite high desire of starting up business among youth, they had not started up a business due to the following reasons: 59% cited inability to get appropriate funding, 28% due to financial risk, 25% do not know how to start a business, 22% because of lack of time, 19% cited already employed while 12% said because of gender considerations. Respondents were asked what are the reasons which would encourage them to starting a business, 47% have access to information on how to start a business, 22% if they able to get appropriate funding, while 29% said they would have done so if not yet employed, and 11% have other reasons including have a good investment opportunity and have support from the family Availability of Vocational and Entrepreneurship Education Opportunities This study found that 28% of the youth respondents in Sana a and Hajjah had received some sort of vocational and entrepreneurship training skills (64% in Sana a, 36% in Hajjah) while 72% have not received any training. Of those who had received training, computer applications came first with 33%, while enterprise/business development skills training got 14% (8% male, 6% female), soft skills training (Leadership, communication, teamwork, creativity ) 14%, other training (handicrafts, fashions, and cell phone maintenance) 12%, tailoring 9%, Financial skills 6%, 5% were trained as hairdressers, other vocational trainings like carpentry, beekeeping, plumber and electrician scored very low with 2%, 2%, 2% and 1% respectively (see figure 2 below). Page 19 of 55

20 Figure 1: Respondents Received Training Enterprise/business development skills Life skills (Leadership, communication Financial skills Computer 1% 12% 2% 2% 14% Carpentry Hairdressing Mechanic Tailor Beekeeping Plumber 9% 0% 5% 2% 14% 6% Electrician Other 33% Table 8: Respondents received vocation and entrepreneurship training in Sana a and Hajjah Training Frequency Sana'a Hajjah Total % Enterprise/business development skills % Soft skills (Leadership, communication % Financial skills % Computer % Carpentry % Hairdressing % Mechanic % Tailor % Beekeeping % Plumber % Electrician % Other % Total % As for young people, the segment aged years had greater access to vocational and entrepreneurship training with 38%, while 17% for the group years, and 26% for the cohort years. Page 20 of 55

21 Analysis of the qualitative data (FGDs and Key Informant Interviews involving youth and trainers) reveal that few of them received vocational and entrepreneurship training skills such as computer, handcrafts, planning skills, and communication skills. According the Ministry of Technical Education and Vocational Training (MTEVT) (2013), the total number of students enrolled in Sana a and Hajjah governorates were 2,417 and 933 students respectively joining 10 institutions in Sana a and 5 institutions in Hajjah (MTEVT, 2012). In Sana a, there are 10 government vocational training centers (no one in the target districts, however it is easy to access them) providing different training courses including mechanics, carpentry, electricity, hairdresser, tailoring and designing, handicrafts, Administrative, Computer and entrepreneurship skills (Know about business) (see Table 8). In addition, a significant number of private sector and NGO skills training providers exist offering training programs, particularly in computer, English language, marketing, management, accounting, and few technical areas such as Mobile phones maintenance, Tailoring and Handicrafts. Some of NGOs and private training providers, such as SOUL, Yemen Education For Employment Foundation, Al-Amal Foundation for Training and Entrepreneurship (Reyadah), Al-Rahma Foundation, Seeds, offer entrepreneurship skills, business management for Micro, Small and Medium entrepreneurs (MSMEs) and business start-up. Table 9: Vocational and Technical Institute in Sana a Training institute name Field of training Students Gender Available Learning systems Orphans Technical Indus. Institute Industrial Males & Females Formal Technical Indus. Institute/ Baghdad St. Industrial Males Formal Technical Indus. Institute/ Hadah Industrial Males & Females Formal Technical Indus. Institute/Dhahban Industrial Formal Technical Veterinary & Agriculture Institute Agriculture Males & Females Formal National Hotel & Tourism Institute Hotel & Tourism Males & Females Formal Arwa Technical Commercial Institute Commercial Females Formal Abdulnaser Technical Commercial Institute Commercial Males Formal Nuqom Center for Woman Training Handicraft Females The Late Staff Brigadier Mohammed A.S Vocational Training Institute Handicraft Source: Ministry OF Technical Education & Vocational Training (2013). Statistical Bulletin. Formal, Short Course Short Course Short Courses in 2011 Handicrafts, Sewing & Fashions, Coiffure, Computer Furniture Joinery, Handicrafts, Sewing& Fashions, Embroidery, Page 21 of 55

22 In Hajjah, there are 5 government vocational training centers, plus a new center under construction in Khiran which is expected to start operations next year (see Table 10). They are providing different training courses including Mechanics, Electricity, Tailoring, Computer and accounting. While there are a modest number of private sector and NGO skills training providers offering training programs, particularly in Computer, Accounting, Human Resource Management and some Soft Skills. According to the Youth Labor Market Assessment that was conducted by CARE in Hajjah (2013), 30% of graduates from these training courses find jobs. In addition, very few NGOs, including micro finance institutions do offer some short courses in Hairdressing, Tailoring, Food processing, Henna engraving and Embroidery. Most of the participants find jobs while some of them start up their own businesses. Table 11: Vocational and Technical Institute in Hajjah Districts Hajjah City Abbs Training institute name Vocational Indus. Institute Arwa Technical Commercial Institute Althawra Technical Commercial Institute Community College Technical Indus. Institute Field of training Students Gender Industrial Males Formal Commercial Commercial Multi Industrial Females Males Males & Females Males & Females Available Learning systems Formal, Short Course Formal, Short Course Formal Formal, Short Course Source: Ministry OF Technical Education & Vocational Training (2013). Statistical Bulletin. Short Courses in 2011 Cell phone maintenance Secretary, Computer, Accounting Electrical Home Appliances Training curriculum: Regarding the training curriculum, the in-depth interviews indicate that all the government vocational and technical training institutions follow the government official curriculum, and some of them started to deliver short courses. During interviews with the trainers, most of them representing the institutes management said the training curriculum was Designed and developed by the Ministry and local experts, however, most of the training curriculum was not revised or updated regularly. The type and number of courses offered in these institutes never change over the years indicating a gap between market demand and course content. Most of the training curriculum delivers regularly for one semester, while the short courses are delivered depend on the course; could be one week or one month. In interviews with the trainers and graduated students, several of them mentioned that, some of vocational Page 22 of 55

23 institutes in Sana a adopted a new entrepreneurship training curriculum (KAP) developed and supported by ILO, but this course is not available for every vocational institute. Private sector training providers, especially in Sana a, are more market-oriented and, therefore, they updated and adopted new curriculum developed by international education centers, INGOs or local trainers (see Table 12). Faculty and trainers: Interview findings note that most of government vocational institutes reported to have good faculty and trainers, however there is a shortage of trainers, and some trainers are not qualified. Even in private sector, there is shortage of qualified trainers in specific subjects, such as Financial Literacy, Entrepreneurship mainly in Hajjah. Interviews finding note that most of the faculty and trainers have academic background however they do not have training skills, and that effect of their performance. Infrastructure: the assessment findings note that most institutes have inadequate infrastructure, outdated equipment and low quality training facilities. Many of the institutions visited during the study had equipment which need to be repaired and maintained. For example, one student in Hajjah mentioned that we study computer science, but we do not have computer lab to use. To have a good training, mainly vocation training, institutes should have basic infrastructure and equipment. Facilities: Regarding facilities, the findings note that almost all institutes do not offer transport facility to their students, though some institutes are far away, with Abbs vocational institute being an exception because it provides transport facility for its students but only inside Abbs city. In discussions with youth and VT students of the institutes in Aslam and Khiran, lack of transport facilities provision appeared to be one of the key challenges in accessing the training opportunities, and access to vocational institutes (in Abbs district or Hajjah City) is thus limited by the additional cost of transportation. For most women, social barriers in terms of mobility also limit their access to these institutions in addition to the extra costs. The new institute in Hajjah, for example, is being constructed outside the city, which will create accessibility issues for girls. Page 23 of 55

24 Table 13: Organization and Entrepreneurship Training Modules Organization Training Modules Target group Location ILO Know About Business (KAB) Entrepreneurship training Student in the vocational institutes Different Governorates Mubadara Entrepreneurship training Graduate students in the universities Sana a, Aden, Hadramaut, AlHudaydah UNDP Youth Economic Empowerment Project CHF (Global Community) MENA YES Project SOUL IFC/World Bank GIZ Silatech Sources: Key Interviews. Entrepreneurship skills (Short Courses) Vocational Training (cosmetology, guard, barber, cook, nursing) Entrepreneurship, Financial Literacy, Soft-skills (Short Courses) Soft skills, Entrepreneurship, computer (Short Courses) Business edge (SMEs training courses) Marketing, Finance and Accounting, Soft skills, Human Recourse Management, Quality Management (Short Courses) Financial Literacy (Short Courses) Entrepreneurship skills Build Your Business program (Short Courses) Youth (18-30) Different level of education Youth (19-29) Low educated Youth (15-24) Different level of education and marginalize group SMEs owner and staff Youth Different level of education Youth (15-30) who want to start up a business. Different level of education Sana a, Aden, Taiz Sana a Sana a, Aden Sana a, Aden, Taiz, Hadramaut, AlHudaydah Sana a, Aden, Taiz Sana a, Aden, Taiz, AlHudaydah Page 24 of 55

25 1.4. Satisfaction of the training As for satisfaction of training received, 45% said they are satisfied while 38% said it was very satisfied, 12% were dissatisfied and 5% said that they were completely dissatisfied (See Figure 3). During the FGDs and in-depth interview with youth who received training, we identified the main causes to make trainees satisfied which are; 1) training courses were market- oriented meaning there is high demand for these skills in the labor market; 2) the participatory methodology used during training; 3) qualified trainers; 4) training materials were easy to understand and implement; 5) training was free of charge; 6) international certificate distributed Figure 2: Satisfaction of the training 6% 11% 38% 45% Very Satisfied Satisfied Dissatisfied Very dissatisfied to participants. On the other hand, some causes behind dissatisfaction on the part of trainees were identified including: 1) training was expensive; 2) the training curriculum was more theoretical than practical; 3) no specific objectives set for the training; 4) the training was long Access barriers to skills training The study found among those who had never received any training, 29% of them attributed this to lack of opportunity, 19% due to lack of information, 11% cited economic barriers, 11% said they were not interested, 8% said training needed was not available, 7% due political unrest, 6% lack of time and 4% ethnic barriers prevented them from receiving any kind of training. During FGDs and in-depth interviews, we identified the following key access barriers to vocational and entrepreneurship skills training in Sana a: 1) limited availability of appropriate training institutions/courses to offer skills training that cope with the labor market requirements and youth preferences, specially to enhance vocational and entrepreneurship skills; 2) poor financial capability among young people, affordability of training fees; 3) lack of sufficient practical training and training facilities; 4) lack of encouragement by the family and local community, due to culture, lack of entrepreneurship awareness, and lack of money; 6) political instability. Meanwhile, the main access barriers to skills training in Hajjah: 1) limited availability of appropriate training institutions/courses to offer skills training that cope with the labor market Page 25 of 55

26 requirements and youth preferences, specially to enhance vocational and entrepreneurship skills; 2) poor financial capability among young people, affordability of training fees and traveling cost; 3) most of training institutes are available only in the big cities, for example, there is no training institutes in Aslam and Khiran districts, the nearest vocational institute is in Abbs district, therefore youth will have to pay almost 500 YR per day for transportation back and fro; 4) limited capacity of training institutes and courses; 5) poor quality of the training offered by most of vocational training institutes, particularly lack of sufficient practical training and linkages with industries plus the lack sufficient training facilities and materials; 5) lack of encouragement by the family and local community; 6) political instability, especially throughout the last 2 years and; 7) geographic barriers, especially for women living in Aslam and Khiran, where most of them unable to make it Abbs or Hajjah City to get education or training whatsoever. Among Muhammasheen the key access barriers to vocational and entrepreneurship skills training are the same as were mentioned above plus: 1) extreme poverty; 2) lack of access to training; 3) discrimination; 4) unequal access to training opportunities; 5) lack of motivation Enterprise/business and financial skills and knowledge among youth Table 14 shows that 31% of the respondents believed that they had good skills to come up with a business idea, while 47% said they had little or none. Asked what perceptions they have about their own skills disaggregated by age group, most age groups were optimistic about their ability to come up with business ideas, while the cohort years believed that they had no skills to generate a business idea. The majority of the respondents (64%) believed that they had no or little knowledge about the procedures to start a business. This is applicable also to all age groups. Regarding knowledge of the procedures required in starting a business as well as getting the product/service to the market, developing business plan, budgeting, keeping financial records and obtaining finance, the majority of respondents answered None. This result shows that there is a lack of business skills across all age groups where business functions are concerned. Page 26 of 55