Effective Microenterprise Education

7th Annual MicroEnterprise Conference

Center for Economic Self-Reliance

Brigham Young University, Marriott School

Shoshana Hecker

March 12, 2004

Presentation Overview•Overview of Making Cents•MC Business Education Experience

MethodologyCurriculaTraining of TrainersCase Study: SenegalLessons Learned

•Business Education Emerging Trend Business Development Services

•Looking Ahead

Overview of Making CentsSmall woman-owned international consulting firm established in 1998 and based in Washington, DC.

• Committed to the improvement of livelihoods • Creation of jobs worldwide • Enable service providers to better assist

entrepreneurs: Expand entrepreneurial mindset & skillset Increase their income, Respond to the market and Grow their businesses.

Making CentsSpecializes in increasing the capacity of business service providers to deliver services to entrepreneurs through:

Provision of innovative experiential methodology training materials, and

Training of trainer courses

Consulting Services

a) Business Skillsb) Curriculumc) How to run a financially sustainable business

Making Cents CurriculaMaking Cents has 13 training curricula that fall within 3 categories:

• Business skills training for entrepreneurs;• Entrepreneurship education for youth; and• Microfinance Institution Loan Assessor Training

Curricula are available in 16 languages (including Spanish and Portuguese) and have been used in 24 countries.

Approach to Capacity Building

Training of

TrainersCurriculum

Trainer/

Instructor

Making Cents Methodology

Entrepreneurs

Business Skills Training

What skills do they want?

Making Cents Methodology

Local TrainersMaking Cents

Trainer Entrepreneurs

Making Cents Curricula

Business Skills Training

Service Providers/BeneficieriesTrainers trained:• Local consulting firms• Individual consultants• Business associations• Microfinance institutions• NGOs• Schools• Training centers• Government agencies

Trainees:• Urban and peri-urban low-

income women & men• Micro and small

entrepreneurs • Technical colleges and skills

training programs• Vocational training programs• Unemployed youth and

adults• Volunteers and Community

Partners

Capacity Building of Service Providers

Supply effective curriculum

• Experiential methodology

• Margin of adaptation

• Straightforward to facilitate

• Adapt to learners environment

Methodology

Approach to Capacity Building

Training of TrainersCurriculum

Trainer/

Instructor

Training of Trainers: Objectives

The Training-of-Trainer courses (TOTs) are designed to prepare trainers and educators to deliver effective business education.

Capacity Building of Service Providers

Content

Training of Trainer course

• Facilitation

• Adaptation

• Integration

Capacity Building of Service Providers

Methodology

Training of Trainer course

• Tailored

• Hands-on

Case Study: Senegal

Fédération Nationale des Groupements de Promotion Féminine (FNGPF)

Network of Associations for Women’s Development

Source: Interviews conducted with program

directors Sept. - Oct. 2002

Case Study: Senegal

• Mission: Expand Senegalese women’s social and economic empowerment through varied programs.

• Include economic and social promotion through income generating activities– Expanding management abilities & access to credit

FNGPF Overview

Case Study: Senegal

• 54 Savings and credit groups (GECs)– Support collective or individual enterprises

• 2 million + members in network• 7,000 women’s groups• Serve all regions of

Senegal

FNGPF Overview

Case Study: Senegal

• Increase members’ knowledge of enterprise management skills and ability to implement them.– Management training as a requirement for loan in areas

with regular training sessions

Strategy• Develop internal capacity to deliver training to clients • Pilot training in Dakar, adapt for local use

– If successful, offer courses at different levels of implementation by region

• Stimulate demand for additional training

FNGPF Goal

• Facilitator 1,500 FCFA

• Supplies 500 FCFA

• Rent training facilities 1,000 FCFA

• Contribution to cooperative’s capital 2,000 FCFA

Entrepreneurs pay a training fee of 5,000 CFA (USD 8)

30%

10%

20%

40%

Facilitator Fee

Supplies

Trainingfacilities

Cooperativecapital

Case Study: Senegal

FNGPF Training

Case Study: Senegal

Fees and Costs Kept Low by: • Organizing training sessions locally• Holding sessions after lunch• Recycling some of the supplies (pencils, erasers,

etc.)• Using “in-house” facilitators

Training Provided from December 2001-March 2002• 158 women trained in GEC cooperative in Thiès • 4-5 day sessions

Fees & Costs

Case Study: Senegal

• Increased enterprise revenues• Improved household budgeting• Understand the big picture• Worthwhile use of time• Valuable - Worth paying for• Additional training desired• Skepticism of value of training

changed by personal experience

Impact

Lessons Learned• Need a relevant training tool and the ability to

facilitate learning using this tool. – Increases their capacity as an entrepreneur to offer a

valuable service.– Having a training tool provides trainers with a skill and

increases credibility, especially with peers.

Building the Capacity of Service Providers

Lessons Learned

• Training materials must:

have relevant content, interest participants, be easy to use, be low maintenance.

Building the Capacity of Service Providers

Trends

Now looking at BDS…

Business Development Services

• Skills training• Market research & linkages• Accounting and financial management • Technical services • Brokering networks• Communication services• Management consulting

Any “non-financial” service to business offered on either a formal or informal basis - such as:

Business Development Services Model

Uses both supply and demand side interventions to develop market for BDS

Donor

Private ServiceProvider

Facilitator

Entrepreneurs

Services

$

$

Lessons Learned

Incorporating BDS approach into Senegal…

Lessons Learned• Develop the capacity of local suppliers to deliver

training.– keeps costs low– access to & knowledge of the market

• Build trainers’ business planning skills in order to develop their own business plan for offering training in a sustainable manner.

Building the Capacity of Service Providers

Lessons Learned

Fees• Participants’ enthusiasm for training increases their

willingness to pay fees• “Hook” entrepreneurs with a “taste”• Important to reduce training costs to keep fees

affordable to entrepreneurs• Fees can be modest and still profitable

– Eg. rural areas, women, youth

Service Providers Offering Sustainable Training

TrendsInternal• Continued and increased charging of fees• Increased reach• Greater outsourcing• Using internal trainers as external service providers• Continued product innovation and expansion

Service Providers Offering Sustainable Training

TrendsExternal• Delivery of training to entrepreneurs where delivery

paid by funders (why turn your back on the cash cow?)

• Growth of contracting directly with entrepreneurs• Increased revenues from this area of training• Increased specialization

Service Providers Offering Sustainable Training

Discussion

Questions

&

Your experiences

Contact InformationShoshana Hecker

Making Cents International1424 L Street NW, Suite 300

Washington, DC 20005USA

Tel.: +1 202 783 4090Fax: +1 202 783 4091

www.makingcents.comshoshana@makingcents.com