Good Practices and Lessons Learned from ILO s Entrepreneurship Models and Activities

Transcription

1 Inspiring Education: Creativity and Entrepreneurship 15 th UNESCO-APEID International Conference / 6-8 December 2011, Jakarta Good Practices and Lessons Learned from ILO s Entrepreneurship Models and Activities By Nicki Ferland, YEN Associate, 1 and Tendy Gunawan, ILO Country Office for Indonesia, National Programme Coordinator for Enterprise Development and Youth Employment 1 The Youth Employment Network (YEN) is an interagency partnership of the United Nations, the World Bank and the International Labour Organization created in 2002 that works to engage, educate and motivate actors to provide improved employment opportunities for youth.

2 Glossary ATS BDSP BLK EAST ESD EYB GET Ahead GOE GYB KAB IA ILO IYB ISA M&E MoMT MoNE MSMEs NGO RTOT SIYB SMA SMK SMP SYB TNA ToE ToT After-Training Support Business Development Service Providers Vocational Training Centre Education and Skills Training for Youth Employment in Indonesia Entrepreneurship Skills Development Expand Your Business Gender and Entrepreneurship Together Ahead Growth-Oriented Enterprise Generate Your Business Idea Know About Business Implementing Agencies International Labour Organization Improve Your Business Indonesia SIYB Association Monitoring and Evaluation Ministry of Manpower and Transmigration Ministry of National Education Micro, Small and Medium-sized Enterprises Non-Governmental Organization Refresher Training of Trainers Start and Improve Your Business Sekolah Menengah Atas (Higher Secondary School) Sekolah Menengah Kejuruan (Vocational Secondary School) Sekolah Menengah Pertama(Junior Secondary School) Start Your Business Training Needs Assessment Training of Entrepreneurs Training of Trainers 2

3 Introduction Entrepreneurship in Indonesia In recent years, entrepreneurship development has been the main focus of public and private employment interventions in Indonesia. As a result of, or perhaps in spite of, Presidential Instruction No. 6/2007 aimed to accelerate the development of the real sector and empower MSMEs, two dozen entrepreneurship development interventions are currently being implemented at the national level, including training for start-up micro businesses, initiatives aimed to improve the business climate, and facilitating access to finance. However, despite the potential of entrepreneurship in Indonesia to create jobs and reduce poverty, entrepreneurship currently grows by accident, i.e. entrepreneurs have no other choice other than selfemployment due to their low level of education and the limited job opportunities that exist in the formal sector. Also, despite the scope of entrepreneurship development activities taking place in Indonesia, monitoring and evaluation seems to be lacking. The absence of published reviews leaves us wanting for good practices, i.e. what works in a particular situation or environment, and lessons learned, what does and does not work. Learning from each others experiences can help us understand what works in Indonesia and around the globe, providing us with benchmarks for adapting existing activities in order to improve our performance. Therefore, coordination and knowledge sharing among the ministries, non-governmental and international organizations for developing entrepreneurship programmes is crucial for avoiding duplication and increasing the impact and effectiveness of programmes. The purpose of this paper is to share good practices and lessons learned from the International Labour Organization s experiences, which prove that it is possible to implement entrepreneurship education and training successfully in Indonesia within reasonable costs when building on the enthusiasm of public and private sector partners and an ever expanding network of trainers. This is due to the competitive advantage of ILO s approach to entrepreneurship development, particularly Start and Improve Your Business (SIYB). The Know About Business (KAB), Gender and Entrepreneurship Together (GET) Ahead, and SIYB modules have been implemented by the ILO quite extensively across Indonesia for the past few years through various programmes and technical cooperation projects. This paper will examine the implementation and impact of these models across three projects, namely the Education and Skills Training for Youth Employment in Indonesia (EAST) Project, the Combating the Forced Labour and Trafficking of Indonesian Migrant Workers (Migrant Workers) Project, and the Joint ILO/UNDP Papua Highlands Entrepreneurship Skills Development (ESD) Project. 3

4 Start and Improve Your Business (SIYB) ILO s Entrepreneurship Education and Training Models It is important to acknowledge the nuances between - and, therefore, the different treatments offered for - entrepreneurship training and entrepreneurial skills education. The ILO offers various entrepreneurship education and training programmes, including Know About Business (KAB) and Start and Improve Your Business (SIYB), the former of which is aimed to develop the entrepreneurial skills of in-school youth. Start and Improve Your Business (SIYB) is an entrepreneurship training programme that can be adapted to suit various target groups but whose participants are selected based on their ability to demonstrate entrepreneurial skills. ILO bases the choice of entrepreneurship training or education model on the targeted group. The GYB module, for instance, is targeted at participants who do not have a business idea, whereas SYB is only effective when participants already have a business idea. KAB is intended to raise the entrepreneurial skills of students, opening their horizons on career and further education choices after they graduate from general or vocational senior high school (SMA and SMK, respectively). The Get Ahead module is widely used in Papua and Aceh, targeting rural women with low educational attainment levels. The following table summarizes the ILO s entrepreneurship education and training models implemented in Indonesia. Models Generate Your Business Idea (GYB) Start Your Business (SYB) Improve Your Business (IYB) Expand Your Business (EYB) 4 in 1 Handbook for Non-Formal Training Providers Know About Business (KAB) Target Groups Potential new entrepreneurs with no business idea Potential new entrepreneurs with a business idea Existing entrepreneurs (micro and small businesses) Existing growthoriented entrepreneurs Out-of-school youth In school youth Purpose To help people generate their business idea To train individuals who already have a business idea on how to start their business To help entrepreneurs to improve their existing business To help entrepreneurs expand their existing businesses To provide disadvantage youth with skills for jobs and business To strengthen students entrepreneurship culture and entrepreneurial skills 4

5 Gender and Entrepreneurship Together (GET) Ahead Designed for women with limited education Provides essential entrepreneurial skills and management training from a gender perspective Start and Improve Your Business (SIYB) The Start and Improve Your Business (SIYB) programme is a management-training programme with a focus on starting and improving small businesses as a strategy for creating more and better employment in developing economies and economies in transition. SIYB was developed in the 1990 s; it has been implemented in over 100 countries, is available in over forty languages, and is adaptable to local contexts. The SIYB programme has developed and licensed more than 200 Master Trainers globally. These Master Trainers have in turn trained and developed over 17,000 trainers from 2500 partner organisations. It is further estimated that the SIYB programme has coached over 4,500,000 trainees in different training packages globally. 2 Overall, this has resulted in over 500,000 new businesses and created over 2.7 million jobs within the last 15 years. In Indonesia, three Master Trainers are fully certified and there are 431 SIYB trainers primarily based in existing Business Development Service (BDS) partner organizations which regularly provide services to micro, small and medium-sized enterprises (MSME). The SIYB training programme has been implemented in no less than eight ILO projects operating across Indonesia in the last five years. 3 The overall objectives of the SIYB programme are to (1) to enable local Business Development Service (BDS) organizations, and among them explicitly women s organizations, to effectively and independently implement business start up and improvement training and related activities for potential and existing entrepreneurs; and (2) to enable potential and existing small entrepreneurs, both women and men, through these Business Development Service (BDS) organizations to start viable businesses and to increase the viability and profitability of existing enterprises, and to create quality employment for others in the process. The SIYB programme was designed with an institutional approach and a multiplier strategy. The ILO builds the capacity of local BDS organizations to effectively and independently implement SIYB training and related activities. In addition, it provides international training and certification to Master Trainers, to whom the management of the SIYB programme and the quality assurance system will eventually be handed over. Using this multiplier strategy, the ILO creates a sustainable training and quality assurance system at the national level. 2 Job Creation and Enterprise Development Department, Small Enterprise Development Programme, The Start and Improve Your Business Programme (SIYB) Fact Sheet, International Labour Organization, June These projects include: HIV/AIDS in the World of Work Project HIV/AIDS (which targeted people living with HIV/AIDS and their families); Project of Support to the Indonesia Time Bound Programme on the Elimination of the Worst Forms of Child Labour - Phase II IPEC (parents of children vulnerable to child labour); Nias Tsunami Response Programme Aceh (young people as part of the post-tsunami reconstruction effort); Papua Indigenous Peoples Empowerment Programme PIPE (indigenous communities in Papua); Combating Forced Labour and Trafficking of Indonesian Migrant Workers Migrant Workers (potential and returning migrant workers and their families); ILO/JPN (potential and returning migrant workers and their families); Education and Skills Training for Youth Employment in Indonesia EAST (out-of-school youth in 6 provinces); and Employment Intensive Growth for Indonesia: Job Opportunities for Young Women and Men JOY (youth in East Java and Indonesia). 5

6 ILO s SIYB approach to entrepreneur development has a competitive advantage over other programmes in that it is capable of delivering training with relative success at reasonable costs by building on the enthusiasm of public and private sector partners and existing networks of trainers. The simplicity of the programme allows it to be rolled out to massive numbers in a short time frame. SIYB is also unique because its multiplier strategy enhances the sustainability and replicability of the programme. The SIYB programme is a materials-based training package with four modules: Generate Your Business Idea (GYB), Start Your Business (SYB), Improve Your Business (IYB), and Expand Your Business. The different modules are taught using advanced adult training methodologies suitable for potential or existing entrepreneurs, young or old, in rural or urban areas. The duration of the training varies from 2.5 to 10 days. To benefit fully from SIYB trainings, participants should be able to read, write and make basic calculations. Generate Your Business Idea (GYB) GYB is a training programme for potential entrepreneurs who want to develop a feasible business idea. GYB training is customized for potential entrepreneurs who want to start micro or small-scale businesses. The objectives of GYB are to enable potential entrepreneurs to find out whether they are the right person to start a business and to generate a feasible business idea. By the end of the training course, potential entrepreneurs will have produced a concrete business idea as a starting point for developing a business plan. Start Your Business (SYB) SYB is a training programme for potential entrepreneurs with a business idea who want to proceed and start their own business. The objective of SYB is to enable potential entrepreneurs to develop concrete, feasible and bankable business ideas in order to start their own small business. By the end of the training course, these potential entrepreneurs will have completed a basic business plan, which will serve as a blue print for the entrepreneurs in starting up their businesses. Improve Your Business (IYB) IYB, the original component of SIYB, is a training programme for owner managers of micro and small-sized businesses with up to ten employees, who should be in business for at least six months before training, who want to improve the management processes of their businesses. The training is modular in order to meet the specific needs of the target group. The objective of IYB training is to enable micro and small-sized entrepreneurs to set up a basic business management systems. By the end of the training course, these entrepreneurs will have been enabled to set up standardized processes for buying, stock control, record keeping, costing, financial forecasting, marketing and productivity improvements through improved workplace practices. Expand Your Business (EYB) 6

7 EYB 4 is an integrated business training and support package for small to medium-sized enterprises that have growth objectives in mind (Growth-Oriented Enterprises GOE) that provides a number of training and non-training interventions that are important to the growth and expansion of businesses. The objectives of EYB training is to capacitate national business associations/chambers, management institutes or other organizations as well as EYB trainers to deliver the EYB programme in a commercial manner; and to enable growth-oriented small and medium-sized enterprises to expand their businesses and create quality employment for others by developing and implementing a strategic business growth strategy, as well as strengthening the business and its core functions. The SIYB Business Game The SIYB Business Game is an enterprise simulation game that provides practical exposure in how to run a business. The Game serves as an instructional and motivational tool, helping participants understand the realities of starting and managing a successful business. The objective of the Game is to give participants an opportunity to replicate a business environment where they are able to take decisions and make transactions with potential risks and consequences. SIYB is sustainable, has a strong quality assurance system and an implementation methodology that offers a competitive advantage over other entrepreneurship training programmes. Key features of this methodology include a training needs assessment, the selection process, and after-training supports (ATS). Sustainability and Quality Assurance Achieving sustainability is a goal of the SIYB programme and thus the selected partner organizations are encouraged to offer SIYB training on a commercial basis to a variety of client groups. The Education and Skills Training for Youth Employment in Indonesia (EAST) project helped SIYB trainers established an association for SIYB trainers, called the Indonesian SIYB Association (ISA) as an exit strategy for the project. ISA plays an important role sustaining, promoting, marketing and implementing the SIYB programme in Indonesia. A key distinctive feature of SIYB in comparison with other small enterprise management training products is its strong quality assurance system. This includes control points and the comprehensive setup of a training system in order to ensure that management training can be offered in the long term on a sustainable basis. Both Trainers and Master Trainers have to go through rigorous training to be certified in delivering high quality SIYB training and related follow-up. Master Trainers play an important role in maintaining the programme implementation at country level and trained trainers are the second tier to ensure programme sustainability. After market assessment and the selection of partner BDS organizations, the trainer development and certification process begins with the identification of potential trainers and concludes with the certification of SIYB trainers. With regard to the selection of potential trainers, it is important that they have relevant experience in BDS, with further education, qualifications and their own 4 EYB is the only SIYB training package that is not currently offered in Indonesia. There is no market for the commercially-based growth-oriented training. 7

8 business to be able to deliver the GYB, SYB and IYB programmes to entrepreneurs. Additionally, they must demonstrate an interest in delivering training in basic business management. To ensure the continuous quality and credibility of SIYB trainers, certification is given only to those who have successfully met all the requirements and demonstrated competency in the following functional areas: marketing and promoting the SIYB programme; identifying needs and selecting participants; the training programme and session design; facilitating learning; evaluating learning; providing follow-up services to trained entrepreneurs; and establishing referral systems for trained entrepreneurs to financial institutions for accessing credit. Marketing the Programme SIYB Master Trainers are responsible for marketing the SIYB programme. This includes introducing the SIYB programme to potential partner organizations and selecting the people to participate in the SIYB Training of Trainers (TOT). Marketing the programme involves customizing the product, setting the right price for the product, deciding on the distribution mode and venue for the training, and promoting the product to the customers. The EAST project, for instance, used print and electronic media to announce impending public briefings for interested and potential partner organizations. Implementation Methodology Training Needs Assessment (TNA) The Training Needs Assessment is necessary to determine the right module to use and the right delivery method. The Migrant Workers project, for example, ascertained that GET Ahead would not be relevant because it is designed for persons with limited education and literacy. However, SYB requires trainees to be financially literate, which the target group was not. Therefore, a financial literacy module was developed to fill this gap. Based on EAST s TNA in the Papua region, 5 a manual was produced to equip facilitators to deal with the challenges encountered with SYB due to specific social and cultural barriers that make it difficult to set up private enterprises in traditional community settings. 10 Learning Conversation in Tanah Papua is intended to enable SIYB trainers to identify with the trainees when their cultural and social relationships may prevent economic development, and to highlight actions that can be taken to promote positive changes. The Selection Process The selection process of participants is also key to ensuring the success rate. Prospective trainees are invited to an interview with trainers based on their individual profiles and not all are admitted to the training. Selection for entrepreneurship education depends on the ability of prospective trainees to demonstrate entrepreneurial skills as well as motivation, age, personality and other factors. The success rate and ability to conduct low cost operations depends on being very selective. After-Training Support Innovations in after training support appear to be very important for enabling productive selfemployment. In the EAST project, trainers focused their attention on ATS activities, provided 5 The Papua region consists of Papua and West Papua. 8

9 through individual and group approaches, in order to encourage and facilitate business start-up, which resulted in an increase of 7.1% business start-up rate to an overall 40.2% (from 33.1%). The increase in business-start up rates indicate that future replication of SIYB ought to use an incentive approach for all trainers to enforce ATS, therefore boosting start-up rates. In particular, linkages with financial institutions, access to capital and mentoring were found to increase the sustainability of new businesses. The 4 in 1 Handbook for Non-Formal Training Providers The 4 in 1 manual is a how to manual for improving the quality and relevance of non-formal vocational training. It was developed on the basis of EAST experiences and finalized as a MoNE product. The 4 in 1 Approach seeks to address some of the key challenges faced in the skills development system for out-of-school youth by focusing on orienting skills training to market demand and by providing a comprehensive training package designed for out-of-school youth to enable them to access jobs and start their own businesses. The four elements of the 4 in 1 Approach (a) labour market assessment, (b) competencybased vocational and entrepreneurship skills, (c) assessment and certification, and (d) aftertraining support offer solutions to challenges faced during the provision of skills development activities for out-of-school youth. The Handbook is a result of the key lessons learned from market-oriented skills training programmes for over 5,000 out-of-school youth implemented as pilots in six provinces. The pilots clearly demonstrated that if all four elements of the approach are meticulously implemented, the end result would be that nearly fifty per cent of trained youth would either have a job or start their own business. The Handbook is a self-help tool; it relies on the personal motivation of non-formal training providers to implement quality training. The Handbook is designed to enable non-formal training providers to effectively implement competency-based training, as per labour market requirements, leading to certification and employment. Additionally, the Handbook provides step-by-step guidance for Community Learning Centres and other non-formal training providers. Know About Business (KAB) Promoting entrepreneurship among youths is an important way to respond to the prevailing oversupply of youth entering the labour market. The Know About Business programme (KAB), created in the 1990 s, is a training methodology that creates awareness about entrepreneurship among youth while emphasising the importance of innovation and creativity. It has been used in over fifty countries, mainstreamed in the national policies of over twenty countries, and is available in over twenty languages. Teachers in general secondary education as well as trainers in technical and vocational training institutions are trained to deliver KAB course content to young men and women enrolled in schools and training institutions and to become certified as KAB national facilitators. The main objectives of the programme are to (1) develop positive attitudes towards sustainable enterprises and self employment among the population, by targeting youth and stakeholders for enterprise development, (2) create awareness about entrepreneurship as a career option for young 9

10 people, (3) provide knowledge and practice of the desirable attributes of, and specific challenges in starting and operating a sustainable enterprise, and (4) prepare students to become better employees through improved understanding of business and stronger positive and adaptive behavioural attitudes, thereby facilitating the school to work transition. The KAB programme is designed to develop the entrepreneurial skills of young people and not necessarily to encourage students to start a business directly after graduation. The programme also encourages qualities such as initiative, innovation, creativity and risk taking among youth. The creative potential of youths is their biggest competitive advantage. However, findings from the business climate survey conducted by the EAST project found that youth are innovationadverse, which runs contrary to common hypotheses that youth entrepreneurs are a source of innovation and competition for the economy. 6 Findings also indicated that young Indonesian entrepreneurs are rather risk-adverse, having competitive-adverse attitudes and setting high importance on job security, which has the potential to hamper youth entrepreneurship in Indonesia and highlights the need for more entrepreneurial education for Indonesian youths. 7 Gender and Entrepreneurship Together (GET Ahead) The GET Ahead training package differs from conventional business training by highlighting essential entrepreneurial skills from a gender perspective, addressing the practical and strategic needs of low-income women in enterprise by strengthening their basic business and people management skills. GET Ahead was initially piloted in Thailand in 2001 and further field tested in East Asia in The training package is suitable for participants who cannot read, who have limited literacy skills or who are literate. GET Ahead focuses on developing women s confidence, creating a business mind, managing people and risks, and grasping opportunities in the business environment. In Indonesia, the materials have been modified to suit local conditions and to include male participants. The overall aims of GET Ahead for Women in Enterprise are to (1) expand decent work and income-earning opportunities for women and men in enterprise in families and communities, (2) enable low-income women entrepreneurs and their families to shift from marginal income generation to profitable business development, and (3) contribute to the social and economic empowerment of populations in poverty. The training package is intended for both ILO partner agencies who service mainly women in income generation and micro-enterprise development as well as low-income and low-literacy potential and existing entrepreneurs. The GET Ahead programme operates similarly to SIYB in that marketing for partner organizations, choosing the right venue and selection of trainees is crucial to the success of the training. Additionally, a training needs assessment (TNA) will identify the specific training 6 The data show that among survey respondents, the level of innovation is clearly linked to age: the older the age sub-group, the higher the likelihood of innovation. This suggests that new entrepreneurs in particular do not understand innovation as a market necessity. A likely reason might be the lack of entrepreneurship studies as part of the school curriculum (apart from SMKs). International Labour Office, Business Environment for Young Entrepreneurs in Indonesia, (Jakarta: International Labour Organization, 2011), International Labour Office, Business Environment for Young Entrepreneurs in Indonesia, (Jakarta: International Labour Organization, 2011),

11 needs of participants as well as the right delivery method (i.e. depending on level of literacy, etc.). The overall content of the GET Ahead training has been grouped in to 10 modules which contain 32 exercises, lasting approximately 40 training hours. However, according to the target group all exercises can be used or a selection of exercises based on the TNA can be made. ILO s Projects with Entrepreneurship Development Objectives The KAB, GET Ahead, and SIYB programmes have been implemented quite extensively in Indonesia by the ILO for the past few years through different projects with various target groups. The ILO focuses its entrepreneurship training efforts on vulnerable groups, i.e. the poor and marginalized. However, impact assessments indicate that the ILO s activities are nonetheless effective despite the limitations of its target groups. This section examines three of the ILO s entrepreneurship skills development-related programmes and technical cooperation activities, namely the Education and Skills Training for Youth Employment in Indonesia (EAST) Project, the Combating the Forced Labour and Trafficking of Indonesian Migrant Workers (Migrant Workers) Project and the Joint ILO/UNDP Papua Highlands Entrepreneurship Skills Development (ESD) Project. The following table summarizes the projects, including clients trained and gender parity, where the project took place, the entrepreneurship model used, the implementation partners and the impact. Below, the three projects are described in more detail. The impact and sustainability of the projects are summarized as well. Project Where Model Partners Impact ILO EAST Papua, West Papua, East KAB, SYB, MoMT, MoNE, other government 45.28% of KAB graduates said they KAB: 49,084 youths Nusa GET entities, NGOs, and started a business and (52% women) Tenggara, Ahead, BDSP 48% of those were SYB: 6,505 Youths Maluku, South 4 in 1, successful. Start up rate (53%) Sulawesi, and and of 40.2; 59% of them 4 in 1: 1,995 Youths Nanggroe SYB + 4 being women (SYB). (43%) SYB + 4 in 1: 1,387 Aceh in 1 Job placement rate: Youths (48%) Darussalam 49.7%; 38% of them being women (4 in 1 only). Start up and job placement rate 72.46%, 50% of them being women (SYB + 4 in 1). Migrant Workers Project 564 migrant workers trained (57% women) West Kalimantan, South Sulawesi, West Nusa Tenggara, West Java, Central Java, SIYB 20 from the Government (MoMT and Ministry of Women s Empowerment), Trade Unions, NGOs, and BDSP Start up rate of 56 % (as of August 2010), 62% of them being women. 11

12 ILO Entrepreneurship Skills Development 625 entrepreneurs (70% women) Banten, Lampung, and Jambi Papua GET Ahead UNDP, UNICEF, WHO, UNFPA, ILO and UNV; financial institutions and BDSP Improved existing business, and improved access to credit (18 training participants have had their credit applications approved by Bank Papua Wamena Branch) Education and Skills Training for Youth Employment in Indonesia (EAST) EAST s target population disadvantaged youth who left school before completing senior secondary school are not the typical targets for entrepreneurship training in Indonesia. While there is a good deal of public discussion in Indonesia about the need to promote more of an entrepreneurial culture and many entrepreneurship training models are competing for attention, the more typical target participants are senior secondary, polytechnic and even university graduates. The EAST project s focus on youth with much lower levels academic of preparation (and likely poorer) is both an opportunity to improve the self-employment possibilities for the most disadvantaged and a challenge to develop models and strategies that effectively improve productivity and earnings in self-employment for this population. The objective of the EAST project s component 6: Entrepreneurship Development was to improve young peoples access to enhanced entrepreneurship and business creation education. The content of the training in entrepreneurship was based primarily on SYB while the business knowledge training for in school youth was based on the KAB programme. In some EAST project areas (Papua and Aceh), GET Ahead was deemed to be more appropriate for the educational background of the targeted youths and local conditions. EAST was able to capitalize on and expand an already existing network of SYB trainers in Indonesia. Since SYB had been promoted in Indonesia prior to EAST, EAST was able to utilize previously certified SYB trainers as Master Trainers. The number of certified SYB trainers in Indonesia also increased as a result of EAST and the capacity of existing trainers was strengthened. The entrepreneur training resources were systematically developed (EAST provided an Indonesian version of the SYB training package 8 ) and trainers were certified with respect to their level of engagement as a trainer of trainers or as a trainer of young entrepreneurs. SYB, 4 in 1 and SYB + 4 in 1 EAST provided SIYB training to over 9,000 out-of-school youth as well as provided marketoriented skills training for over 5,000 out-of-school youth participating in EAST s 8 Both SYB and KAB were adapted to local conditions by component implementing agencies. 12

13 entrepreneurship trainings (component 6) through component 4 (vocational skills training programmes for out-of-school youth) with a clear objective of skills for jobs and businesses. EAST developed the 4 in 1 methodology based on good demonstrations of how linkages between institutions from the beginning of the process (non-formal training providers, private sector companies and government agencies), which enable both technical vocational skills and entrepreneurship skills trainings, can produce innovative responses and boost success rates. The following table summarizes the impact of SYB, 4 in 1 and SYB + 4 in 1 methodologies on developing youth entrepreneurship implemented during the EAST project. Module Clients Trained SYB 6,505 Youths 4 in 1 1,995 Youths SYB + 1,387 4 in 1 Youths % Women Approximate Cost/Head Where 53% IDR 1.3 million 6 Provinces 43% IDR 3.5 million 6 Provinces 48% IDR 4.8 million 6 Provinces Impact Start up rate of 40.2; 59% of them being women. Job placement rate: 49.7%; 38% of them being women Start up and job rate 72.46%, 50% of them being women Source: Impact of Entrepreneurship and Employability related Activities in Indonesia Quick Update March 2011 and SIYB Data Collection as of 15 September 2011 Impact The start-up business rate for SYB rose from 33.1% to 40.2% with after-training support. The best start-up rates are in Aceh and NTT provinces. Aceh focused on after-training supports (ATS), with trainers coaching SYB alumni as much as possible. NTT imposed a similar strategy. Additionally, providing vocational skills and entrepreneurship skills training to youth trying to start a business or who have just started a business plays a key role in enhancing the success rate of new entrepreneurs. SYB plus vocational training success rate (business start up and/or placement) is over 70%. On top of this, two hundred and forty SYB alumni attended further Improve Your Business (IYB) training. Sustainability The Indonesia SIYB Association (ISA) was established as an exit strategy. Thus, trainers will have at their disposal a structured programme that is being employed worldwide as well as access to the latest developments in entrepreneurship training to offer their beneficiaries. The SIYB programme is undergoing continual developments, the results of which are shared with registered SIYB trainers. The SIYB programme has become the mandatory entrepreneurship tool for Provincial Cooperative and SME Office of the NTT provincial government. The NTT provincial government has had additional SIYB Training of Trainers (ToT) using their own budget. SIYB trainers are offering their services commercially, generating additional income for themselves. KAB 13

14 In the 2005/2006 school year, the Ministry of National Education (MoNE) and the ILO introduced KAB on a pilot basis in to the vocational and technical secondary education system (SMK) in Indonesia in order to encourage entrepreneurship among youth and increase employability. Though the ILO s Start Your Business (SYB) package had previously been introduced to the vocational and technical secondary and tertiary school systems (SMK and BLK, respectively), trainers and monitoring and evaluation (M&E) specialists found that SYB was not being introduced in the SMKs as the coherent package originally intended by MoNE and the ILO; instead, SYB training materials were being used on an ad hoc basis as entrepreneurship education curricula. Therefore, the likelihood of students then having the right set of management skills to be able to start their own business after graduating was highly unlikely. Furthermore, it was suggested that most young women and men would need more skills and additional support to start a business. Based on these discussions, the ILO introduced, and collaborated with MoNE and the Ministry of Manpower and Transmigration (MoMT) to launch a pilot testing of the KAB entrepreneurship education package targeted at students in their first two years of senior high school. Teachers in general secondary education (SMA) and trainers in vocational and technical training institutions (SMK and BLK) were trained in the adapted materials. The BLKs opted out as the 40 hour SYB programme is more suitable for their target market than the 120 hour KAB programme. The following table summarizes the impact of KAB for promoting an entrepreneurial spirit and entrepreneurship knowledge delivered by the Government of Indonesia and ILO-EAST. Clients % Approximate Cost/Head Where Impact Trained Women 49,084 Youths 52% Training of Teachers (SMA and SMK): IDR 6 million to IDR 7.5 million 6 Provinces 45.28% of KAB graduates said they started a business and 48% of those were successful Source: A 2010 impact study conducted in 2 districts Impact The success rate of KAB graduates who have started their own businesses or have secured gainful employment is higher than non-kab graduates from the same school year and institutions. 9 49,084 students (151 per cent of the targeted 32,500 students) from senior high schools and vocational senior high schools (SMA and SMK) who followed the KAB classes demonstrate a proactive attitude to the world of work, with more than half of them quoting opening a business as a potential career option (against close to 0 per cent for non-kab classes). An impact study conducted in 2010 indicated that KAB graduates proved to be more successful in the workplace compared to non KAB graduates, as the entrepreneurial skills also affect their performance at work. The KAB graduates who successfully started their own businesses cited the KAB programme as the influencing factor for opening their own business instead of becoming an employee. Out of the 45.28% of KAB graduates who had tried to start their own business, about 48% stated that their business is successful. Of the 54.72% of non-kab 9 KAB Impact Assessment Study,

15 graduates who tried to open a business, only 31.82% said that they are successful. So, while less KAB graduates than their non-kab counterparts started business, the KAB graduates are more successful than non-kab graduates in starting and running their business. 10 Sustainability School principals were committed to keep implementing KAB after the EAST project ended. SMKs that implemented KAB have improved the practical component of the entrepreneurship class that is part of the regular curriculum. ILO KAB partners (VEDC Malang and VEDC Bandung) disseminated KAB using their own budget to another 600 schools outside of the six EAST Project provinces. KAB has been successfully mainstreamed into Indonesia s national curriculum. Combating Forced Labour and Trafficking of Indonesian Migrant Workers Services to protect and empower migrant workers and their families are rare in both Indonesia and the destination countries. Migrant workers are vulnerable to exploitation because their come from relatively poor rural backgrounds, lack education, skills and income-generating opportunities; thus the provision of economic empowerment services is vital. The Migrant Worker s project targets potential and returning migrant workers as well as their families. Its geographical scope comprises eight provinces in Indonesia as well as Malaysia, Singapore and Hong Kong as destination countries. The project s third of five objectives is Outreach, Organizing, Assistance, Reintegration and Economic Empowerment Services. The project collaborates with national and local partners that provide outreach, protection, livelihoods and re-integration services to migrant domestic workers in source and destination countries. These services include entrepreneurship training through the SIYB programme and financial literacy, among others. Economic empowerment activities have demonstrated significant outcomes and impacts on migrant workers and their families. The activities, which have been institutionalized and adapted into the programmes of implementing agencies, demonstrate good practice through their multidimensional impact on the protection of migrant workers. By aiming to improve financial literacy, entrepreneurship and productions skills and enabling access to micro-credit, the activities address the root-causes of labour migration as opposed to the symptoms. Furthermore, the activities benefit not only migrant workers but also their families, ensuring that the family members of migrant workers invest and utilize remittances in a productive way. By combining economic empowerment activities with capacity-building of stakeholders and implementing agencies, implementing agencies (IAs) have recognized the benefits that economic empowerment may generate on a broader level. As a result, these interventions have been not only been institutionalized, but also replicated in new locations KAB Impact Assessment Report, Migrant Workers Evaluation,

16 Forty men and 49 women took part in the project s 10-day TOTs. The project utilized twenty implementing agencies from the government, trade unions, non-governmental organizations (NGO) and Business Development Service Providers (BDSP). SYB training is normally five days (40 hours); however, Migrant Workers offered an elongated GYB session to enable participants to develop a business idea. Therefore, the TOEs lasted for 6 days. The following table summarizes the impact of SIYB implemented under the Migrant Workers project. Clients % Approximate Where Impact Trained Women Cost/Head 568 Migrant Workers 57% IDR 1.3 million 8 Provinces Start up rate of 56%, 62% of them being women Source: SIYB Achievements in the Migrant Workers Project, August 2010 Impact Within 1 year of the training, 60% of the trainees had already either started and/or improved their business and more than 80% of the former participants demonstrated behavioural changes in terms of financial planning, managing their business, record-keeping, making a business plan, etc. Ninety five per cent of trainees were able to develop a business plan and based on interviews with local commercial banks, the former trainees were high appreciated for their detailed business plans; about 20% of the trainees secured credit from financial institutions. Within 3 years of the training, 40% of the entrepreneurs have improved their micro enterprises indicated by better managerial skills, increases in income, and improved marketing. Sixty per cent of participants admitted that the training has led them to find alternative sources of income and employment. By May 2011, 440 males and 500 females had been trained by the trainers that were involved in the Migrant Workers SIYB TOT by outside ILO funding. Sustainability The SIYB programme has been adopted by all involved implementing agencies. Four organizations even made preliminary preparations to establish specific divisions that functions as a Business Development Service Providers (BDSP). Instead of continually providing services to vulnerable communities, these divisions will also sell the SIYB training programme commercially, which in turn will contribute to the organizations incomes. The SIYB programme was officially adopted by MOMT s BBPPK and BBPP agencies in SIYB is also being adopted by the district government of Bandung and this year, using their own budget, they implemented 29 SYB trainings integrated with their other vocational/technical skills trainings. ILO/UNDP Joint Programme for the Papua Highlands Entrepreneurship Skills Development (ESD) Project The UN Joint Programme is an initiative taken by the UN agencies presently working in Papua, namely the United Nations Development Programme (UNDP), the United National International Children s Fund (UNICEF), the World Health Organization (WHO), the United Nations Population Fund (UNFPA), the International Labour Organization and United Nations 16

17 Volunteers (UNV), to consolidate their technical cooperation services in specific areas in order to generate greater development impact and sustainability. The Highlands of Papua was selected to serve as a pilot site for the Joint Programme. The programme aims at contributing to poverty reduction by facilitating community entrepreneurship skills development activities that would lead to increased income and employment opportunities, primarily for indigenous Papuans micro and small enterprises. The original target was to train 250 entrepreneurs of which it aimed for a 90% women participation rate. The project has far surpassed this original target but women s participation is lower than originally hoped for. However, it is felt that 70% participation by women is already a significant achievement given the gender inequality in the central highlands. Women s participation is normally very difficult to achieve at village level due to dominance of men in any local activities. Also, the fact that men were present at most of the workshops helped promote more balanced discussion on gender issues. 12 The ILO managed the ESD project under the poverty reduction component of the Joint Programme funded by UNDP. Three main objectives of the project were (1) to enhance awareness and understanding among the population of the business potential regarding existing natural resources in Papua; (2) to strengthen entrepreneurship skills among partner community members, especially among women; and (3) to increase capacity of micro and small entrepreneurs to effectively manage their enterprises, which, in the long run, would enable them to generate greater income as well as employment opportunities. The strategy for strengthening entrepreneurship skills among partner community members, particularly women, consisted of two stages: a) basic entrepreneurship training based primarily on GET Ahead and SIYB tools; and b) hands-on entrepreneurship training, with special attention to marketing. ILO-ESD discovered that there were no organisations functioning as a BDS in the region. For this reason, ESD decided to support the set up of a new BDS entity and provided a grant to assist with start up costs as well as training in the principles of BDS. Following the training, a group was developed from experienced trainers/facilitators to set up a local BDS in Wamena City. The concept for the BDS is to set up an open shop system in a café environment that will promote and sell local coffee as well as other products and provide technical advice to entrepreneurs and build partnerships with micro-finance providers to assist with follow up and coaching. There is considerable buy in for this concept from local regency government authorities which is a good sign for the sustainability of these BDS. In addition, awareness on entrepreneurship development and economic potential was also carried out through the use of media and socialization meetings. A collaboration programme was developed between the ESD and RRI Wamena (Radio of the Republic of Indonesia). This programme included: (a) an interactive radio programme broadcast every week for two months until the end of November 2009 with entrepreneurship as the primary topic; (b) spot or message broadcasting on the roles of women within entrepreneurship, transmitted two to five times daily; and (c) weekly radio dramas, broadcast up to the end of November ILO-ESD produced a video, GET Ahead, The Movie to educate potential entrepreneurs. The video features the instructional training module of GET Ahead (Gender and Entrepreneurship 12 Naomi Sosa, ILO/UNDP Joint Programme for the Papua Highlands Entrepreneurship Skills Development Project: Project Final Report, September 2010,

18 Together) that has been adapted to the Papuan local context and culture. The module focuses on gender equality and business management, women and networking, marketing, product, services and technology and finance management. It is a user friendly hands-on entrepreneurship skills material with special attention to marketing, through coaching. It also takes into account the difficult situation of accessing experienced instructors on the subject. 13 The following table summarizes the impact of the GET Ahead training package on indigenous peoples in Papua during the Highlands ESD project. Clients Trained % Women Approximate Cost/Head Where 625 women and 70% IDR 1 million Papua men with limited Region educational (Papua and background West Papua) Impact Improved existing business, and improved access to credit (18 training participants have had their credit applications approved by Bank Papua Wamena Branch) Source: Project Final Report for the ILO/UNDP Joint Programme for the Papua Highlands Entrepreneurship Skills Development Project, September 2010 Impact ILO-ESD has succeeded in mobilizing many local skilled people from different backgrounds to support entrepreneurs through the Training of Trainers (ToT) with a total of 137 people trained. In 2009, ESD carried out a total of 21 Training of Entrepreneurs (TOE) for local entrepreneurs, especially women. These workshops have trained a total of 625 entrepreneurs in basic entrepreneurship skills using the GET Ahead training programme. Of these entrepreneurs, 70% (437) were women. The training process provided by ESD has initiated a change in the way of thinking among women entrepreneurs, but in most cases this has not yet translated into action in terms of changes or improvements in their businesses. However, for a short (one and a half years) project, the impact is still significant. Access to credit was also improved; 18 training participants have had their credit applications approved by Bank Papua Wamena Branch. Sustainability Due to civil society s lack of capacity in the region, no appropriate BDSP were identified for further training and joint working with ILO. As a result, ILO initiated the formation of a BDS made up of local facilitators trained by ILO in Jayawijaya to be headed by an indigenous Papuan woman. This initiative has a lot of potential to effectively build the capacity and coach micro and small entrepreneurs. There is good coordination with local government actors and overwhelming support for the objectives of the programme as shown by various new initiatives that have committed to support local entrepreneurs in the region. The relationship between the ILO and the local government has created a strong basis for further strengthening and training to increase the project s sustainability. 13 Special Edition on Entrepreneurship Skills Development,