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close this bookTraining Entrepreneurs for Small Business Creation: Lessons from Experience (ILO, 1988, 154 p.)
View the document(introduction...)
View the documentManagement Development Series
View the documentPreface
View the document1. Introduction
Open this folder and view contents2. Factors influencing programme design
Open this folder and view contents3. Organisation and administration
Open this folder and view contents4. Components of training programmes
View the document5. Some observations
View the document6. Xavier Institute of Social Services, Ranchi, India
View the document7. Madhya Pradesh Consultancy Organisation Ltd., India
View the document8. Directorate of Industrial Training, Uganda
View the document9. Calcutta “Y” Self-Employment Centre
View the document10. Bangladesh Management Development Centre
View the document11. Entrepreneurship Development Institute of India
View the document12. Hawaii Entrepreneurship Training and Development Institute
View the document13. The Entrepreneurship Institute, Columbus, Ohio
View the document14. Manpower Services Commission: New Enterprise Programme, United Kingdom
View the document15. Bibliography
View the documentOther ILO publications
View the documentBack Cover

8. Directorate of Industrial Training, Uganda

Accelerated training programme for self-employment

Organisation

The Ministry of Labour is responsible for industrial and apprenticeship training in Uganda. Following the war of 1979,1 when industry was not functioning and apprentices were not being trained, the Ministry through its Directorate of Industrial Training undertook to use its Vocational Training Institutes at Lugogo and Nakawa to provide accelerated training in skills for self-employment and the creation of workshops in the rural areas. The small business management and entrepreneurship training components were subcontracted to the Management Training and Advisory Centre (MTAC), an autonomous training institution sponsored by the Ministry of Commerce.

The 40-week programme aims to recruit and select unemployed, senior secondary school leavers from the rural areas and to provide them with technical and managerial training appropriate to self-employment and workshop creation in trades required in the rehabilitation and reconstruction of the Ugandan economy in rural areas. The programme consists of:

1. A market survey to determine the vocational skills to be developed for the creation of viable self-employment and workshops, and for which there is a market demand in the rural areas.

2. A recruitment and selection package for obtaining trainees from the districts.

3. Training in technical skills for the identified self-employment and workshop opportunities.

4. Small business management training appropriate to each type of technical workshop.

5. Behavioural and entrepreneurial process training.

6. Consultancy and advisory follow-up services.2

7. Tools scheme and credit assistance.2

Identification, recruitment and selection of trainees

1. The number of trainees for each trade in each district is determined by a survey of the market’s capacity to absorb them.

2. Radio and newspaper announcements of the details of the accelerated training programme are made, requesting prospective applicants to contact the District Commissioner’s Office.

3. The District Commissioner’s Office nominates three candidates for each vacancy on the basis of academic achievement and relevant background experience.

4. The nominated candidates complete an application form and a self-employment assessment questionnaire.3

5. An interview team from the Directorate of Industrial Training visits each district, checks the application form and questionnaire for accurate completion, verifies the information contained, interviews the candidate and completes a Structured Interview Form.3

6. The programme staff score the three forms using a predetermined scoring and weighting scheme.3 The scores for each applicant from a district are ranked from highest to lowest. The trainees for each trade in each district are chosen on the basis of the highest rank, notified through the District Commissioner’s Office and transported to the training centre to begin their programme. (The programme is offered free of charge).

Management and entrepreneurship training

The conceptual and topic outline of the small business management and entrepreneurship training components of the programme is given below. This training was part of a course of technical training lasting approximately 32 hours per week.

Conceptual outline: Entrepreneurial training component; Accelerated technical training programme

The goal is to provide guide-lines for the development of an integrated self-employment training component of the accelerated technical training course. The programme is to provide inputs on managerial and entrepreneurial skills development and will be taught concurrently with the technical training. All technical training will be conducted in “training-cum-production” workshops.

Time parameters of the programme

1. The programme is to run for 40 weeks beginning in mid-August.

2. There will be two breaks in classroom activity:

- Christmas break (mid-December to mid-January) - trainees will return to their home communities;

- Easter (approximately five days in April) - trainees will remain in residence.

3. Each student will receive three hours of management training in each of the 40 weeks of the programme. The management training will be divided into two major blocks:

- weeks 1-20: General management training for small enterprises;

- weeks 21-40: Entrepreneurship training and business plan preparation.

Conceptual overview of the course

In weeks 1-20 all 60 trainees will be instructed in general management knowledge, skills and attitudes relevant to both paid and self-employment. Topics to be covered will be discussed and agreed with the instructional staff of MTAC but will include at least those listed below.

At the end of the 20th week a formal examination of the trainees’ knowledge of the content of weeks 1-20 will be conducted. Those successfully completing this examination will be allowed to take the entrepreneurship training and business plan preparation part of the course in weeks 21-40, while those who were unsuccessful will be required to repeat weeks 1-20.

The content of weeks 1-20 will be taught in three separate classes so that automotive repair and maintenance, building trades, and metalworking trainees will be able to work with instructional materials and examples appropriate to businesses in their chosen trade.

During the Christmas break the trainees will have an assignment to collect as much information as possible in order to perform a feasibility analysis of the self-employment opportunities in their home areas in their chosen occupations.

The second part of the course comprises a combination of classroom training and individual supervised projects in feasibility analysis and new business planning. At the end of this segment each student (or group of students if they plan a partnership or co-operative arrangement) should have a comprehensive plan that can be presented to a panel of instructors, technical experts, members of the banking community and, if possible, successful business people. The plan and the trainee will be assessed for viability, the ultimate test being whether the trainees should be granted the necessary financing to start the business. A tentative topic outline for this part of the course is presented below.

The technical training workshops operate on a “training-cum-production” basis. The MTAC instructors should co-ordinate with the technical training experts and use actual commercial operation to introduce practical examples of business practices to the trainees.

Topic outline: General management training for small enterprises

1. Introduction to small business management. The nature of business activity and the role of small business entrepreneurs. The role of profits in the survival and growth of small business enterprises. Characteristics of successful businesses and reasons for failure. Characteristics of successful small business managers. Risks and rewards of small business ownership (self-employment).

2. Marketing. Market and consumer analysis: determination of consumer desires and size of market. Product decisions: determination of products or services to offer. Pricing decisions: costing and pricing of goods and services. Promotion: developing customers, appropriate use of media and other means of promoting business. Selling and sales management: estimating and quoting, sales techniques and dealing with customers, sales records.

3. Keeping records. Work orders and sales invoices. Purchase of goods for resale and inventory records. Classification and recording of expenses. Simple systems of accounts: one-book accounting system. The profit and loss statement and balance sheet. Accounts receivable and accounts payable.

4. Managing operations. Locating your business. Shop layout. Management of the premises and other assets. Time management and scheduling activities. Monitoring productivity. Controlling inventory costs and turnover. Simple analysis of financial statements and identification of problem areas.

5. Managing finances. Break-even analysis and the concept of planned profit. Recovery of fixed asset cost through overhead allocation. Working capital and the cash flow cycle. Short-term capital and trade credit. Intermediate financing and bank credit. Long-term financing of fixed assets. The concepts of “payback period” and “rate of return”.

6. Introduction to new venture feasibility analysis. Overview of new venture feasibility analysis. Intensive examination of approaches to market feasibility analysis.

Topic outline: Entrepreneurship and business plan preparation

1. Overview of entrepreneurship and self-employment. Economic contributions of new and small businesses. Entrepreneurship and economic development. Entrepreneurship defined and the process explained. Reasons for success and failure of new and small businesses. Characteristics of successful entrepreneurs.

2. Self-assessment and self-employment. Psychological characteristics of entrepreneurs. Methods of self-analysis. Self-development of potential. Role of partnerships in achieving balanced entrepreneurial and managerial characteristics. Making the decision to start your own business. (Possibly, achievement motivation training exercises.)

3. Feasibility analysis. The difference between a feasibility analysis and a business plan. Identifying new venture opportunities. The unique business proposition. Technical and legal feasibility. Assessing market feasibility and market opportunities. Operating feasibility. Financial feasibility (amount of financing required; possible sources and costs of financing; cash flow feasibility; total venture feasibility; the “go/no go” decision; adequate returns to capital invested; owner’s time and effort; risk).

4. The business plan. The importance of detailed planning for: (a) financing the business; (b) operations guide-lines; (c) an administrative operating manual. Thorough examination of several business plan outlines as given in the reference readings and instruction in preparation of the components. Organised student project workshops to complete “real-life” feasibility analyses and business plans for each student. Writing the “mini-plan” or prospectus.

5. Practice presentation. Each student will have the opportunity to make a practice presentation of his or her business plan to a panel of appropriately qualified people who will judge the economic viability of the proposed venture. Criteria can be derived from the references.

Course development procedures

1. An outline for the programme will be agreed upon by the course instructor and the ILO consultant in entrepreneurial development.

2. A list of available instructor’s reference materials will be drawn up.

3. A list of reference materials by topic will be drawn up.

4. Learning objectives for each of the 40 sessions will be specified.

5. Lesson plans for each topic and class will be prepared with the following headings: topic; learning objectives; student reference materials; student preparation required; classroom routine; drill and testing for comprehension.

6. A student’s manual containing the required reference materials will be prepared.

Course guide-lines

1. Wherever possible the course should use local materials, examples and illustrations. The more local members of the financial and business community, as well as relevant government agencies, can be involved in the classroom experience and with the students the better.

2. The instructors should always display a confident, positive attitude typical of entrepreneurs. While not minimising the difficulties of self-employment, they should point out that there are examples of success by people with less education and ability than the trainees have.

3. The commercial operation of the training workshops should be used for examples of products and services that can form the basis of a business.

4. Wherever possible, trainees should obtain “hands-on” experience and then have this related to classroom theory rather than the other way around. The learning should be student centred, not instructor centred.

5. The ultimate test of the instructor is the number of trainees that become successfully self-employed in the rural areas. The instructors should view themselves as economic development officers as much as instructors. The facilitating role of the instructor is greatly to be stressed.

Notes

1 At the time of writing, a military coup was taking place in Uganda.

2 These components were designed as part of the programme but have not as yet been implemented.

3 The forms and scoring scheme as used are slight modifications of those contained in Technonet Asia: Trainer’s manual on entrepreneurship development (Singapore, University of the Philippines, Institute for Small-Scale Industries, 1981), Appendix A, “Entrepreneurship training selection procedure”.

DIRECTORATE OF INDUSTRIAL TRAINING
Ministry of Labour
P.O. Box 20050, Lugogo
KAMPALA, Uganda