1. Building the Capacity of Service Providers to Deliver Effective and Sustainable Enterprise Training Presenter: Wendy Rimer Microenterprise Conference BYU Program for Economic Self-Reliance March 14, 2003

2. Presentation Overview Overview of Making Cents Business Development Services Model Case study: FNGPF Case Study: Peace Corps Senegal Lessons Learned Trends: Looking Ahead

3. What is Making Cents? Small woman-owned consulting firm established in 1998 and based in Washington, DC. Specializes in increasing the capacity of financial and business service providers to better deliver services to micro, small and medium-sized entrepreneurs worldwide through: –the provision of innovative experiential methodology training materials, and –training of trainer courses.

4. What is Making Cents? Making 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 15 languages (including Spanish and Portuguese) and have been used in 24 countries.

5. BDS Model

6. Trainers trained: Local consulting firms Individual consultants Business associations Microfinance institutions NGOs Schools Training centers Government agencies Trainees Urban and peri-urban low-income women National traders’ credit union Micro and small entrepreneurs operating manufacturing and service businesses Technical colleges and skills training programs Vocational training programs Unemployed youth and adults Peace Corps volunteers and Community Partners Service Providers and their Beneficiaries

7. Supply effective curriculum Experiential methodology Minimal adaptation Effective approach Straightforward to facilitate Training of Trainer course Facilitation Adaptation Integration Capacity Building of Service Providers

8. Methodology Service Providers/ Trainers Making Cents Trainer Training of Trainers course Entrepreneurs

9. 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

10. Capacity Building of Service Providers DynaEnterprises $ (75% support)  Service Provider  Making Cents (technical assistance) Case Study

11. Case Study: FNGPF FNGPF Overview Mission: Expansion of 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 54 Savings and credit groups (called GECs) –Support collective or individual enterprises 2 million + members in network 7,000 women’s groups Serve all regions of Senegal

12. Case Study: FNGPF Challenge/Problem FNGPF is trying to address: As economic activities move from buying and selling to transformation and production (e.g. turning raw material into products for sale) Problems in the areas of organization, management, financial planning and control. (Lack of basic business skills) Creates a threat that entrepreneurs will not be able to reimburse GECs or default on loan. FNGPF’s Response 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

13. Case Study: FNGPF Strategy Develop internal capacity to deliver mgmt training to clients: –8 FNGPF agents and 17 GEC managers trained. Pilot training in Dakar, adapt for local use. If successful, offer courses at different levels of implementation by region. Stimulate demand for training based on quality, relevance, and affordability. Generate Additional revenue through sale of training services to other organizations. Trainers paid at a commission as an incentive for delivering training.

14. Case Study: FNGPF TRAINING Entrepreneurs pay a training fee of 5,000 CFA (USD 8) Facilitator 1,500 FCFA Supplies 500 FCFA Rent training facilities 1,000 FCFA Contribution to GEC’s capital 2,000 FCFA

15. Case Study: FNGPF 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

16. Case Study: FNGPF Feedback from Entrepreneurs Content Relevant and applicable learning planning book keeping negotiation marketing pricing and costing quality

17. Methodology Appreciated hands-on = interesting, easy to learn, not intimidating Initial skepticism of value of training, changed with experience Impact Increased enterprise revenues Improved household budgeting Understand the big picture Worthwhile use of time Worth paying for Additional training desired Skepticism of value of training changed by personal experience Case Study: FNGPF

18. Case Study: FNGPF Results Increase in membership base Increase in savings level Increase in portfolio outstanding Some of the results of this strategy on the cooperative in Thiès: 28% 102% 73%

19. Peace Corps Senegal Building capacity of service providers/ entrepreneurs to provide sustainable business skills courses Challenge: How to make fee-for-service training affordable Case Study

20. Overview Making Cents provided Training-of-Trainers for 8 Peace Corps volunteers and 8 local Senagalese in April 2002. Case Study: Peace Corps Senegal

21. Objective To train Senagalese with the business and facilitation skills to develop and run their own micro-entrepreneurs training service. Volunteers would serve as “consultants” to the local Senagalese. Results Example of one local Senagalese, Mr. Samb, who started own consulting business to provide business skills training. Clients include: Youth associations and women’s associations of more than 3,000 members. Case Study: Peace Corps Senegal

22. Strategies for achieving sustainability Provided training for 20 youth. Charged 2.000 FCFA (=US $3.50) to participate in training. Members of women’s association are now required to receive the business skills training provided by Mr. Samb prior to receiving financing. (Financing provided through a grant to the Association from the Minister of Family and Children.) Case Study: Peace Corps Senegal

23. “One woman and member of a youth association who received training from Mr. Samb said that after 3 years of attending trainings, nothing was as helpful as the training in Game Plan (Esprit d’Entreprise) that helped to clarify exactly what it takes to start a business.” Jennifer Hawkins, Peace Corps volunteer Case Study: Peace Corps Senegal Feedback on Entrepreneurs

24. Building the Capacity of Service Providers Develop the capacity of local suppliers to deliver training. –This helps to keep costs low which makes trainers’ services affordable to micro-entrepreneurs. –Local service providers have access to market because they live in the same communities. Important to build trainers’ business planning skills in order to develop a business plan to offer training in a sustainable manner. Helpful if management training compliments existing services Lessons Learned

25. Building the Capacity of Service Providers 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 a young trainer with a skill and increases credibility, especially with peers. Training sessions can be offered internally at very low cost if the right strategies are developed Training materials must: have relevant content, interest participants, be easy to use, be low maintenance. Lessons Learned

26. Building the Capacity of Service Providers Trainers Trainers motivated by financial incentive –Assists with quality and marketing Capacity issues: –Use of cooperative managers (GEC) as facilitators became a problem due to their workload. –Solution was to find better educated (board) members not involved in management. ?Training Materials must be easy to implement with little or no on-going costs. ? With expansion, outsourcing may be necessary Lessons Learned

27. For Service Providers to Offer Sustainable Management Training 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 –rural areas Lessons Learned

28. For Service Providers to Offer Sustainable Management Training Market Very broad – Great demand for training materials to provide business skills to the poor, who often can't read or write Different trainers suited to different clients Lessons Learned

29. Entrepreneurs Willing to pay for training of quality and impact Require “proof” that training is worthwhile

30. Trends: Looking Ahead Internal Continued and increased charging of fees Increased reach Greater outsourcing Using internal trainers as external service providers Continued product innovation and expansion Trends with Service Providers Offering Management Training

31. Trends: Looking Ahead Trends with Service Providers Offering Management Training External 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 External 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