4.1.2 Enterprises with growth potential: The demand for training
4.1.2 Enterprises with growth potential: The demand for training
Lack of effective demand: Innumerable surveys of informal sector enterprises have shown that formal training and skill constraints are perceived as being relatively unimportant by most entrepreneurs and workers. Since they have to be 'persuaded' to become training clients, the chances of success are limited from the outset. The low level of formal education is also frequently cited as a key factor limiting the demand for training as well as the overall trainability of operators and workers.
The ILO has had considerable experience in trying to graft training projects onto indigenous apprenticeship systems, particularly in SSA. One of the main lessons that has been drawn from the ILO's 'self-training projects' in Francophone Africa is that, initially, informal sector artisans do not usually regard skills training as a priority. They only become aware of its usefulness once they have gained access to new markets and have negotiated favourable terms of purchase for key raw materials (see Maldonado, 1989). Similarly, the results of a large number of country surveys in SSA during the 1990s (especially those conducted under the auspices of USAID's GEMINI programme and the World Bank) have repeatedly shown that training is not perceived as a major problem viv-a-vis other operational constraints. While training is invariably identified as being desirable, when respondents are asked to specify particular problems facing their enterprises, training and/or availability of skilled labour are nearly always ranked as being of very minor importance (see, for example, Mead, 1990; Parker et al, 1992;). While this does not mean that appropriate skills training could not significantly improve productivity, the overwhelming perception among informal sector operators is that its role is limited.
Most surveys identify credit and access to markets as the most critical constraints. Because replication rather than intensification of activities is generally regarded as the main source of short-term growth, the provision of credit is seen as having the greatest potential for improving incomes. However, because relatively small amounts of credit are, on their own, unlikely to lead to the adoption of new techniques and technologies, the scope to improve livelihoods without significant skills upgrading is likely to be quite limited in the medium-long term.(9)
The general consensus is that, unless a number of key constraints can be effectively tackled, there is little point in providing training to most entrepreneurs and workers in the informal sector. However, whereas training on its own is not usually effective, this is not generally the case for other services, most notably microcredit. There is broad agreement, therefore, that training should be integrated in a package of services. Where these are not affordable or the expertise is not available to design and implement what are typically complex, multi-input interventions, then there has been a marked preference for 'targeted' services such as credit. These can be delivered on their own and have lower opportunity costs than most formal training activities.
Indigenous skill formation: The prevalence of relatively well developed indigenous training systems among MSE in many countries, particularly in West Africa and South Asia is a key factor accounting for the low level of demand for formal training. The authors of the World Bank's influential VET Policy Paper go so far as to suggest that "traditional apprenticeships provide most of the training needed in the informal sector in most countries" (World Bank, 1991:60).
Growing recognition of the importance of indigenous training systems has had a major impact on government and donor training policies and practices. Where these indigenous training mechanisms are in place, it has been argued that "there is no a priori case to be made for specialised training interventions" (Middleton et al, 1993: 167). While there is scope for improvement, there is understandable concern that poorly conceived training interventions could easily undermine the traditional master-apprentice relationship on which the entire system is based. This has, in turn, dampened the interest of both governments and donors in getting too heavily involved in improving indigenous training systems. Informal credit systems, on the other hand, are almost universally inefficient and ineffective which has provided the necessary justification for the provision of cheaper, alternative forms of microfinance that are targeted at the poor.
Formal sector experience: Where MSE entrepreneurs and workers have been previously employed for relatively long periods in the formal sector, this is also likely to lower the demand for formal training. For example, King argues that in most of South America, "the majority of business people who receive training, credit, and other support services have only been able to start their own businesses only after many years of employment in other (formal sector) businesses" (King, 1996).
Direct training costs: The costs of formal training courses is frequently cited by MSE operators as an important reason for not taking up training opportunities. For example, in a large survey of MSEs in Kenya, over 40 per cent of respondents stated that they could not afford training because of 'limited resources' (see Table 2).
Trainability: Illiteracy among the poor significantly lowers their trainability. In South Asia, in particular, a high proportion of workers in the urban informal sector are illiterate rural migrants (see ILO, 1997). Acquiring basic literacy and numeracy skills is, therefore, generally regarded as being of higher priority than conventional VET. There is a growing group of NGOs which see the "transformative potential" of well designed, mass literacy programmes as being the key to poverty reduction. In recent years, Actionaid's REFLECT literacy projects have become perhaps the most well known example of this approach.
EMPLOYMENT AND TRAINING
PAPERS
43
Learning to change: Skills
development among the
economically vulnerable and
socially excluded in
developing countries
Paul Bennell
Employment and Training Department
International Labour Office Geneva
First published 1999
412 Enterprises with growth potential The demand for training - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
Most training strategies in the informal sector have targeted manufacturing microenterprises that are considered to have some growth potential. However, even within this relatively better-off segment of the informal sector, the effective demand for training has frequently been found to be quite limited.
Lack of effective demand: Innumerable surveys of informal sector enterprises have shown that formal training and skill constraints are perceived as being relatively unimportant by most entrepreneurs and workers. Since they have to be 'persuaded' to become training clients, the chances of success are limited from the outset. The low level of formal education is also frequently cited as a key factor limiting the demand for training as well as the overall trainability of operators and workers.
The ILO has had considerable experience in trying to graft training projects onto indigenous apprenticeship systems, particularly in SSA. One of the main lessons that has been drawn from the ILO's 'self-training projects' in Francophone Africa is that, initially, informal sector artisans do not usually regard skills training as a priority. They only become aware of its usefulness once they have gained access to new markets and have negotiated favourable terms of purchase for key raw materials (see Maldonado, 1989). Similarly, the results of a large number of country surveys in SSA during the 1990s (especially those conducted under the auspices of USAID's GEMINI programme and the World Bank) have repeatedly shown that training is not perceived as a major problem viv-a-vis other operational constraints. While training is invariably identified as being desirable, when respondents are asked to specify particular problems facing their enterprises, training and/or availability of skilled labour are nearly always ranked as being of very minor importance (see, for example, Mead, 1990; Parker et al, 1992;). While this does not mean that appropriate skills training could not significantly improve productivity, the overwhelming perception among informal sector operators is that its role is limited.
Most surveys identify credit and access to markets as the most critical constraints. Because replication rather than intensification of activities is generally regarded as the main source of short-term growth, the provision of credit is seen as having the greatest potential for improving incomes. However, because relatively small amounts of credit are, on their own, unlikely to lead to the adoption of new techniques and technologies, the scope to improve livelihoods without significant skills upgrading is likely to be quite limited in the medium-long term.(9)
The general consensus is that, unless a number of key constraints can be effectively tackled, there is little point in providing training to most entrepreneurs and workers in the informal sector. However, whereas training on its own is not usually effective, this is not generally the case for other services, most notably microcredit. There is broad agreement, therefore, that training should be integrated in a package of services. Where these are not affordable or the expertise is not available to design and implement what are typically complex, multi-input interventions, then there has been a marked preference for 'targeted' services such as credit. These can be delivered on their own and have lower opportunity costs than most formal training activities.
Indigenous skill formation: The prevalence of relatively well developed indigenous training systems among MSE in many countries, particularly in West Africa and South Asia is a key factor accounting for the low level of demand for formal training. The authors of the World Bank's influential VET Policy Paper go so far as to suggest that "traditional apprenticeships provide most of the training needed in the informal sector in most countries" (World Bank, 1991:60).
Growing recognition of the importance of indigenous training systems has had a major impact on government and donor training policies and practices. Where these indigenous training mechanisms are in place, it has been argued that "there is no a priori case to be made for specialised training interventions" (Middleton et al, 1993: 167). While there is scope for improvement, there is understandable concern that poorly conceived training interventions could easily undermine the traditional master-apprentice relationship on which the entire system is based. This has, in turn, dampened the interest of both governments and donors in getting too heavily involved in improving indigenous training systems. Informal credit systems, on the other hand, are almost universally inefficient and ineffective which has provided the necessary justification for the provision of cheaper, alternative forms of microfinance that are targeted at the poor.
Formal sector experience: Where MSE entrepreneurs and workers have been previously employed for relatively long periods in the formal sector, this is also likely to lower the demand for formal training. For example, King argues that in most of South America, "the majority of business people who receive training, credit, and other support services have only been able to start their own businesses only after many years of employment in other (formal sector) businesses" (King, 1996).
Direct training costs: The costs of formal training courses is frequently cited by MSE operators as an important reason for not taking up training opportunities. For example, in a large survey of MSEs in Kenya, over 40 per cent of respondents stated that they could not afford training because of 'limited resources' (see Table 2).
Trainability: Illiteracy among the poor significantly lowers their trainability. In South Asia, in particular, a high proportion of workers in the urban informal sector are illiterate rural migrants (see ILO, 1997). Acquiring basic literacy and numeracy skills is, therefore, generally regarded as being of higher priority than conventional VET. There is a growing group of NGOs which see the "transformative potential" of well designed, mass literacy programmes as being the key to poverty reduction. In recent years, Actionaid's REFLECT literacy projects have become perhaps the most well known example of this approach.
EMPLOYMENT AND TRAINING
PAPERS
43
Learning to change: Skills
development among the
economically vulnerable and
socially excluded in
developing countries
Paul Bennell
Employment and Training Department
International Labour Office Geneva
First published 1999
412 Enterprises with growth potential The demand for training - To learn more about this author, visit International Labour Organization's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
|||
Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to International's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Increase Performance Leadership Tips for QuickBooks Backup Franchise & Distribution Telemarketing Success Acronym Soup |
|
 | ||
 |
The Top 10 GTD Times Posts
Best Posts for Productivity | |
 |
Top 50 SEO Posts - 2007
Top SEO Posts of the Year | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||