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10.2 Pre-start-up training: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005

Written by: International Labour Organization

Article Overview: Data from a 1997-98 training needs assessment of informal sector operators found that over 75 per cent of informal sector operators had primary education, while only seven per cent had attended vocational training courses. Most had acquired their skills in a variety of trades through apprenticeships or directly from their peers, but were unaware of the theoretical aspects (reported in Mlingi, 2000, p. 81). Only 5.3 per cent of the MSEs in the Swisscontact (2003) study had received any entrepreneurship training, and even fewer in new product technologies or costing and pricing. This suggests that most MSEs are “learning through trial and error” or from the practical know-how of other operators.

10.2 Pre-start-up training: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005

Data from a 1997-98 training needs assessment of informal sector operators found
that over 75 per cent of informal sector operators had primary education, while only
seven per cent had attended vocational training courses. Most had acquired their skills in
a variety of trades through apprenticeships or directly from their peers, but were unaware
of the theoretical aspects (reported in Mlingi, 2000, p. 81). Only 5.3 per cent of the MSEs
in the Swisscontact (2003) study had received any entrepreneurship training, and even
fewer in new product technologies or costing and pricing. This suggests that most MSEs
are “learning through trial and error” or from the practical know-how of other operators.
SIDO provides training for MSEs under its Business Management pillar. It uses a
number of approaches and materials, including the ILO’s Start and Improve Your
Business (SIYB) materials. SIDO uses a holistic approach in the development of clients
by linking technical and management training and consulting services with micro-finance
services. Women clients make up the majority of those seeking marketing support, and in
response SIDO recently hired a woman as Marketing Director.

Technical training in food processing, as supported by SIDO and UNIDO, has been
available for at least seven years. Almost 2,000 people, mostly women, have been
trained. However, only about 200 of the women trainees have been able to develop
meaningful and sustainable enterprises, mostly very small, informal food-processing
activities operating mainly from their home kitchens (UDEC, 2002). It is not clear why
this investment has not generated greater results, especially because this training also
includes entrepreneurship components. Part of the problem could be the stringent
regulatory requirements for operating a food processing business. As well, the costs of
premises and those for necessary testing expenses are often beyond the reach of most of
the women.

The Tanzanian approach to working with women’s enterprise development from a
training perspective is predominantly sectoral and group-based, with technical training at
its core. Entrepreneurship training elements are sometimes included, but often women
receiving technical training are not well equipped with the entrepreneurial and business
management skills that they will need to start or expand a business. Except in isolated
cases (e.g., the work of SIDO and UNIDO with women in the food processing sector),
these women receive little follow-up support when the training is finished.

TGT provides training to their clients in a broad range of management skills,
including marketing skills and how to access loans, but the reach is limited.
Overall, there are limited opportunities for women to participate in entrepreneurship
training. An official from the Ministry of Community Development, Gender (Women)
and Children stated:

If we build women’s capacity in entrepreneurship, then we develop them into resources.
What’s needed is a training institution for women and we need women mentors in different
sectors and areas of expertise to help train others. We need a women’s entrepreneurship
centre to do all of this!

Related Articles
  1.2 Mission Objectives: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  8.0 Promotion of women’s entrepreneurship: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  10.0 Training – business management and technical skills: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  1.1 Background and Introduction: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005
  1.3 Methodology: Support for Growth-oriented Women Entrepreneurs in Tanzania, 2005

Article Tags: business management skills, entrepreneurship, entrepreneurship training, food processing, informal sector, management skills, management training, Marketing Director Technical training, SIDO, technical training, training needs assessment, vocational training courses



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