ILO Technical Cooperation Intervention Model Series

Transcription

1 ILO Technical Cooperation Intervention Model Series Start and Improve Your Business (SIYB) Duration: Technical unit: Donors: Since 1997 (since 1977 as IYB), ongoing EMP/SEED More than 14 donors, including SIDA, DFID, Japan, AusAID, Denmark, Norway, USA, Canada, Luxembourg, Austria Outcome 3: Sustainable enterprises create productive and decent jobs. Indicator 3.1: Number of Member States that, with ILO support, reform their policies or regulatory frameworks to improve the enabling environment for sustainable enterprises. ILO P&B link (outcome and indicators) Indicator 3.2: Number of Member States that, with ILO support, implement entrepreneurship development policies and programmes for the creation of productive employment and decent work. Indicator 3.3: Number of Member States that, with ILO support, implement programmes to foster the adoption of responsible and sustainable enterpriselevel practices. Indicator 3.4: Number of Member States that, with ILO support, adopt policies that integrate the principles of the tripartite declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration). 1. Main features The Start & 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, particularly in emerging economies. The overall SIYB objective is to contribute to economic development and to the creation of new and better jobs. The ILO assists Business Development Service (BDS) organizations to develop the skills required to implement, monitor, manage and finance the training programme, and sets up a sustainable training system on the national level, thus contributing to sustainable economic growth and employment generation. With an estimated outreach of 4,5 million trainees, SIYB is probably the biggest small enterprise management training system in the world. SIYB has been translated into more than 40 languages and adapted to a wide range of national and regional contexts. 1

2 2. Logic model The logic model provides an overall synthesis of project implementation. It is only representative and may not be exhaustive in terms of how it was carried out in any particular country. Additional elements and components may be added or removed in order to better adapt to local realities. The SIYB programme was designed with an institutional approach and a multiplier strategy. After assessing the market for business services in a given country or region and establishing the demand for customized business management training solutions, the ILO builds the capacity of local Business Development Services (BDS) organizations to effectively and independently implement SIYB training and related activities. In addition, it provides international training and certification to a group of SIYB 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. The following diagram illustrates the implementation of the SIYB methodology. SIYB intervention model, September

3 Marketing and branding SIYB Implementation SIYB trains on three levels 1. The Main Facilitator trains SIYB Master Trainers 2. Master Trainers train SIYB trainers in BDS organizations 3. SIYB trainers train clients: MSEs and start ups SIYB Facilitator MT MT MT MT T T T T T T T T T T T T T T T T T T T T Start-Ups, Micro and Small Entrepreneurs Capacity and SIYB SIYB trainers are based in existing BDS partner organizations which regularly provide services to MSMEs. The management of the BDS partner organization where the trainer is based signs an MoU with the SIYB implementer or Master Trainer in which the use of the programme and outreach numbers are agreed upon before the trainer is trained. SIYB Master Trainers, whose competences are assessed and certified by the ILO, use a core set of training materials to effectively plan, organize and conduct training of trainers (ToTs) programmes and follow-up measures. They are also responsible for marketing the SIYB programme, selecting new partner organizations, quality control of the SIYB programme, material adaptation, and conducting SIYB impact assessments and evaluations. 3. Methodology and tools The SIYBs programme core is a range of training packages and instruments, with integrated components for counselling, networking, promotion of service institutions, and policy dialogue. SIYB employs four toolkits, each adapted and translated to specific country needs: 1. Generate your business idea (GYB) is intended for people without a business plan who would like to start a business. At the end of this training, participants are expected to have developed a concrete business idea ready for implementation 2. Start your business (SYB) is for potential entrepreneurs with a concrete business idea who want to start a profitable and sustainable small business. The programme is a combination of training, field work and after-training support activities and consists of two subprogrammes: the SYB Business Awareness, where participants assess readiness to start a business both in conceptual and financial terms; and the SYB Business Planning that teaches them how to prepare a business plan and assess its viability 3. Improve your business (IYB) introduces already practising entrepreneurs to good principles of business management, i.e. marketing, costing, stock control, record keeping, buying and business planning. Relevant examples and exercises enable entrepreneurs to SIYB intervention model, September

4 identify their own business problems and actively engage in solving them. The IYB package called People and Productivity helps entrepreneurs to increase their business productivity and profitability by making effective use of their staff. The SYB and IYB package also include the SIYB Business Game 4. Expand your Business (EYB) gives growth-oriented small and medium entrepreneurs the practical tools to implement and realize fast business growth and profits. The enterprises are assisted through training in identified management areas and non-training interventions. The main output from the training programme is a business growth plan, which includes marketing, operations, human resources, financial and strategic management. The EYB non-training interventions include individual business counselling, facilitation of business and financial linkages, specialist services, and business support groups. The SIYB Product Family EYB Expand Your Business Generate Your Business Idea - GYB A two -day long materialsbased training programme which customised for potential entrepreneurs to conduct an entrepreneurial self-assessment, analyze, develop and select most feasible business idea. SYB - Start Your Business A five day long training for potential entrepreneurs with concrete and feasible business idea. It helps participants to develop business plan on draft marketing strategy, staff needs, cost of goods and services, clear idea on licenses and permits needed, legal form and forecast of finances. The training is being followed with at least one group counselling session. IYB - Improve Your Business A training programme for existing entrepreneurs to improve business management through seven modules: 1)Marketing; 2)Buying procedures and stock control; 3) Forecasting of sales, costs and cash flow, 4) Producing balance sheet, profit and loss statements, 5) Costing, 6) Keeping records and 7) Improving productivity through better An integrated ten day long business training for growth oriented entrepreneurs. The training programme consists of four modules 1) Strategic management; 2) Marketing and Sales management; 3) Human Resources Management; 4) Financial Management. The standard training course The SIYB Business Game The Business Game is a way to learn about how business works in real life. The Game serves as an instructional and motivational tool of the SIYB programme at all levels. It provides practical exposure in how to run a business. This enterprise simulation game complements the SIYB training manuals for potential and existing entrepreneurs. It helps participants understand the realities of starting and managing a successful business. SIYB intervention model, September

5 4. Target groups Direct beneficiaries: Any BDS provider, which is already engaged in business creation and management training programmes. In implementing the SIYB the ILO usually seeks collaboration with social partners (governments, employers and workers organizations), as well as NGOs, the private sector, profit-making and non-profit making organizations. The SIYB methodology also targets trainers (certified by the BDS) and Master Trainers (certified by the ILO). The ILO undertakes a market assessment in order to assess whether management training is in actual demand before intervening in a given BDS market. Ultimate beneficiaries: Entrepreneurs who want to generate, start, improve or expand their own businesses. The programme uses an institutional approach which enables it to multiply the capacity to reach small-scale entrepreneurs in large numbers by working with existing BDS providers and analyzing market dynamics in the management training market before intervening. The SIYB programme also empowers groups excluded from the labour market such as the unemployed, and low-skilled and migrant workers. It also encourages women to become entrepreneurs in their own right as well as creating employment opportunities for others. 5. Results Key Indicators (standard project based indicators to be achieved within typically 3 years timeframe) Institutional sustainability indicators At least 30 Partner Organizations (SIYB Training Service Provider ) sign MoU and implement SIYB programme (plan, market, and deliver a range of SIYB training courses to ultimate target) 75% trainer activity rate Technical sustainability indicators Standard set of materials on SYB and IYB available in local language; Material printing and distribution channels established and running At least 2 trainers in each Partner organisation certified based on practically demonstrated competencies; 50% of trainers are women; 30% of trainers are youth; At least 30 trainers delivered 2 training workshops (GYB, SYB, GYB+SYB)each for potential entrepreneurs 70% of GYB trainees generate a feasible business idea 60% of SYB trainees prepare a business plan 50% OF IYB trainees make measurable business improvements (turnover, employment, costreductions) 50% of GYB, SYB and IYB trainees receive coaching support from trainers; At least 5 client cases developed per trainer; SIYB intervention model, September

6 90% customer satisfaction rate 40% of trainees are women 60% of GYB and SYB trainees are youth; Financial sustainability indicators Trainer development costs met by service providers on progressive basis (from GYB+SYB to IYB) Entrepreneur level training is cost-shared on progressive basis by clients and supportive organisations SIYB manual sales system designed Key indicators of SIYB global program - Over 2,500 partner organizations benefited from the programme - Over 200 master trainers trained - Over 17,000 trainers trained million trainees with all training packages - Over 500,000 new businesses created - Over 2.7 million jobs created SIYB outreach: over 2,500 organizations have benefited from the programme in 100 countries, and some 4.5 million start-ups and entrepreneurs have been trained globally in the last 15 years. This has resulted in the creation of over 500,000 new businesses, with over 2.7 million jobs created within 15 years. Over 200 master trainers and 17,000 trainers (roughly 60% men and 40% women) received SIYB education. On average, three out of four (75%) certified trainers become active by passing the programme on to potential and existing entrepreneurs. SIYB intervention model, September

7 Some country-specific examples: In China more than 4 million trainees have been reached since Linked to a variety of complementary measures a conservative estimate is that only during programme implementation until 2008, more than a 1 million jobs had been created. The programme also had an impact on policy development and contributed to the draft Employment Promotion Law. In Sri Lanka the SIYB Association whose membership comprises all participating BDS organizations in the country (as well as independent trainers) coordinates SIYB implementation. In 2007 the World Chambers Federation competition held in Istanbul, Turkey, granted them the world award for Best Unconventional Project for SMEs. The SIYB Regional Project Office for Eastern and Southern Africa coordinates the implementation of the SIYB regional programme. In Uganda, Zambia, and Zimbabwe, of the entrepreneurs who newly started or expanded their business after SIYB training in 1999 and 2000, 74% were still operating a business in In addition, 58% of those who had been in business for three to four years after training were operating a registered business. In Vietnam by December 2003, in addition to 14,546 entrepreneurs being trained in 534 SYB and IYB workshops, an additional 3,436 entrepreneurs were in the IYB on the Air radio distance learning programme. In Bolivia the ILO has an active network of 5 Master Trainers and more than 100 trainers, who have trained almost 10,000 micro and small entrepreneurs in the country. In Papua New Guinea, SIYB is the only nationwide training programme targeting the micro enterprise/small business sector. SIYB intervention model, September

8 Comparative advantage The SIYB programme fulfils demands from potential and existing entrepreneurs, trainers and organisations by supplying simple, low-cost and comprehensive material and methods. SIYB is unique because of its multiplier strategy in the hands of trainers, Master Trainers and partner institutions which enhances the sustainability and replicability of the programme. SIYB probably is the most cost-effective globally recognized management training product available in 100 countries and approximately 40 languages. The simplicity of SIYB converts it into a programme that can be rolled-out to massive numbers in a short time-frame. 6. Costs Implementation of the Programme: The cost range for SIYB depends on many factors, including the size of the country, the MSE support structure already in place, the availability of SIYB materials and Master Trainers in the region or countries where it will be launched and elsewhere. For a full cycle of SIYB implementation, from introduction to institutionalization, it takes on average three years for the completion of a project. Costs may range from one to five million dollars depending on the size of the country, local financial contributions and the existing MSE support structures. For an ongoing project in need of a consolidation phase, less than US$1,000,000 can be expected for a period of three years. SIYB has also been provided at lower cost as a component of larger projects, whereby the SIYB programme is introduced and trainers are trained with less effort made to institutionalize the programme. Costs in this type of set up can range from US$50,000 to US$500,000. Delivery of the Programme: Over the years SIYB evolved from a programme mainly delivered on a highly subsidized basis, at little cost to the end client, to a programme with a strong emphasis on models that would make large scale training delivery financially sustainable. SIYB partner institutions and trainers are strongly encouraged to charge fees for the training products they are offering, although it is important to note that the ILO does not attempt to influence the business model of service provision of partner institutions. The amounts per 5-day training vary a great deal across the world; in most countries, the average participant s contribution ranges between 10 USD and 30 USD per person. This contribution usually covers a percentage of the overall training costs (20-70%). The rest of the cost is covered by other sources, like cross-subsidies, local and national public and private donors. Illustrative examples: In China the SIYB programme was introduced over a three-year period at a total cost of approximately US$ 6 million. The Government of China provided substantive counterpart financing that enabled the country-wide roll-out of SIYB. A three-year implementation of the institutionalization and consolidation phase of SIYB in Papua New Guinea was executed with US$879,000. In Bolivia SIYB was introduced and institutionalized by a series of three projects over a period of six years. Each of the projects contributed between US$100,000 and US$250, Lessons learned Enabling factors /good practices One important aspect of the success of SIYB is that it has a simple and systematic structure and includes numerous illustrations, case studies and highly interactive exercises. SIYB intervention model, September

9 The SIYB Business Game, which illustrates the functioning of an enterprise in the form of an interactive and fast-paced game, is a key tool for trainee motivation and engagement. 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. The diversity of delivery channels employers organizations, private sector associations, chambers of commerce, NGOs, small consulting enterprises, government ministries and bigger private consulting companies help the programme to optimize its outreach to the ultimate beneficiaries micro, small and medium enterprises, depending on the training programme. The methodology has shown itself to be easily integrated into UN interagency initiatives, as its inclusion in a wide range of One UN programmes illustrates, for example the MDGF programmes in Central America, Egypt and Vietnam. SIYB training has been recognized as an efficient tool in post-disaster situations, specifically to rebuild the businesses devastated by the 2004 tsunami in India and Sri Lanka. It contributed to local economic development while restoring infrastructure, producing basic goods and services crucial for reconstruction. Since the SIYB programme is a demand driven product, the ILO has responded by adapting it to supply and demand on the BDS market, taking measures to increase programme impact. SIYB has proven itself as a highly adaptable methodology, and a range of tailored tools have been developed: Simplified SIYB training: SIYB Level 1 adapted to the needs of micro-enterprises with limited formal education. Sector-specific SIYBs for rural businesses, agriculture, eco-forestry, commercial fishing, eco-tourism (in Spanish) and emerging building contractors (in South Africa, called Start and Improve Your Construction Business). Issue-specific SIYB materials: the HIV/AIDS workbooks synthesize the impact of the pandemic on small businesses and offer practical and useful strategies on how to deal with it at the workplace. SIYB has also been adapted to people with disabilities, including a version in Braille. SIYB courses have also been adapted to use long-distance learning elements and have been conducted by correspondence, enabling more people in remote areas to participate. Obstacles /challenges Maintaining a similar quality level in the programme on a global scale: In spite of the builtin quality assurance mechanisms, some partner organizations and trainers become inactive or under-performing. Since SIYB trainers are at the heart of the programme and form the driving force behind entrepreneurial activities, finding adequate quality trainers is essential. SIYB intervention model, September

10 A rigorous selection process is therefore applied MTs and trainers are not automatically certified upon successfully completing their training, but have to prove that they have the adequate skills to implement in practice what they have learnt in a variety of ways. Follow-up services: The impact of the SIYB programme would improve if better follow-up services were being provided by SIYB trainers. Providing such services to help small businesses overcome a range of common practical problems in the implementation of daily management activities is recognised as a crucial requirement if the benefits of the training are to be enhanced. Linkages can be provided with financial service providers, MFIs and banks, insurance companies, accounting firms, advertising agencies, computer-related firms and legal services. Training per se is not the sole solution or need of many entrepreneurs. The lack of access to finance and start-up capital is a major bottleneck for potential and existing entrepreneurs. Improved linkages with financial institutions have been widely tested (including the use of guarantee funds, adapting financial procedures etc.) but this is an area that needs further attention. Gender issues are already incorporated in the whole SIYB training cycle, ensuring that gender is mainstreamed at all levels, including broadening the selection criteria and recruitment methodologies to encourage women to attend SIYB seminars, but time is needed for this concern to permeate throughout the global network. 8. Sustainability and replicability Throughout its global network SIYB works with a three-tier strategy that aims to achieve sustainable financial, institutional and technical quality. The approach helps participating organizations to sustain the number and quality of training activities in the field once ILO technical assistance has phased out.. SIYB: Sustainability Financial: Cost recovery and financial incentives at all system levels Institutional: management capacity, legitimacy and recognition of institutions and people. Planning and executing SIYB programming cycle Technical: maintain or improve the technical quality of training programmes including new material development and continuous learning Capacity and SIYB SIYB intervention model, September

11 9. Partnerships The SIYB Programme largely depends on partnerships with organizations that are capable and reliable in delivering quality SIYB training for entrepreneurs. The establishment of strong partnership is an essential part of the programme. Currently there are at least 2,500 diverse institutions worldwide that have incorporated SIYB in their portfolio, which cover: - Public-service institutions: Small Enterprise Development Agencies, Employment Bureaus, Social Security sector, Employers Federations, Trade Unions, Ministerial Departments, etc. - Training institutes: Vocational or Technical Colleges, Training Centres, Universities - Financial institutions: Banks, Micro-Finance Institutions - NGOs/Non-profit organizations: International and national NGOs/NPOs - Private sector organizations: Consultancy firms, Business associations, Chambers of Commerce, Individual consultants, etc. 10. Knowledge sharing The SIYB Master Trainer Network is based on an online Resource Platform that allows Master Trainers to add training experiences and suggest documents to be uploaded. Important documents related to SIYB are regularly posted on its website: A range of ILO knowledge sharing tools like the Know About Business platform ( APYouthNet and the Asian Decent Work Decade Knowledge Network have incorporated knowledge sharing components on SIYB. An important knowledge sharing tool at the national level within SIYB is the Directory of Advice and Assistance (DAA) intended for entrepreneurs and SIYB facilitators. It provides contact information about sources of advice, and key information on topics such as business registration, consulting services, labour law, taxation, marketing, technical training, management training, financial services, and technology transfer. It is updated periodically for each country and widely distributed as reference information. 11. Short history The SIYB programme stems from a training package called Look After Your Firm that was developed in the 1970s by the Swedish Employers Federation. In 1977 the Swedish International Development Agency (Sida) funded a project for the ILO to adapt the materials to the needs of smallscale entrepreneurs in developing countries. The adapted training package was called Improve Your Business IYB. In the early 1990s an ILO technical cooperation project in Fiji embarked on the development of the Start Your Business SYB training package. SYB was soon adopted by ILO technical cooperation projects all over the world to complement the IYB training package. In the late 1990s Generate Your Business Idea - GYB was developed by the ILO and later complemented by Expand Your Business EYB. Today, the SIYB programme is globally recognized as an ILO SIYB intervention model, September

12 trademark. The ILO s Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189) calls on Member States to encourage a more positive attitude towards risk-taking and to create and strengthen an enterprise culture which favours initiatives, enterprise creation, productivity, environmental consciousness, quality, good labour and industrial relations and adequate social practices, all of which are equitable. The 2007 ILC discussion on Sustainable Enterprise confirmed the ILO s role in job creation and enterprise development. 12. Further information Website: Contact details Merten Sievers, sievers@ilo.org Gulmira Asanbaeva, asanbaeva@ilo.org 13. Associated projects and major publications Associated projects List of project code, country, project title ILO SIYB Southern Africa: SIYB Jordan: SIYB Vietnam: SIYB Sri Lanka: SIYB East Europe: Bibliography, major publications available The 2011 SIYBGlobal Tracer Study. Forthcoming in late 2011 ILO/SIYB 2003 Global Outreach Study A study of the outreach and impact of the Start and Improve Your Business Programme worldwide (2003): Boosting Employment through Small Enterprise Development (EMP/SEED): WCMS_DOC_ENT_DPT_SEE_EN/index.htm This document was developed in May 2011 by the Partnerships and Development Cooperation Department, in collaboration with the Start and Improve Your Business Programme of the Boosting Employment through Small Enterprise Development Unit. The ILO s Technical Cooperation Intervention Model series is a mapping of approaches used in the ILO's technical cooperation programme. The models outline the basic logic of an approach, where it has been used, what tools it has produced, notable successes and challenges, and the vision for the future. The models aim to encourage cross-fertilization of ideas and approaches in technical SIYB intervention model, September

13 cooperation, knowledge sharing between technical units and the field, and providing background information for Governing Body documents and relations with donors. The models are living documents and input and suggestions are highly encouraged. Comments can be sent to SIYB intervention model, September