Global Workshop onDevelopment Impact Evaluation
in Finance and Private SectorRio de Janeiro, June 6-10, 2011
Presented byObert Pimhidzai - AFTP2, & Mattea Stein-
AFTDEwork done with
Bbira Bbosa-KASSIDA, Francisco Campos-AFTPM, Peter Dhamuzungu-PSFU, Markus Goldstein-AFTPM, Antoinette Schoar-MIT,
Bilal Zia-DECFP
KATWE SMALL SCALE INDUSTRY ASSOCIATION INFORMAL SKILLS TRAINING PROGRAMME - UGANDA
Informal sector biggest form of non-farm employment in Uganda
2ND LARGEST CONTRIBUTOR TO NET JOB CREATION IN UGANDA, 1992-2006
Wage Non wage
All -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Agriculture IndustryServices
PROJECTED TO CONTRIBUTE TO 25% OF NEW JOBS IN THE NEXT 10 YEARS
Wage employment - government
1%
Self-emp & unpaid family
workers - agriculture
40%
Self-emp & unpaid family worker non-agriculture
25%
Private wage employment -
agriculture4% Private wage
employment - non-agriculture
30%
….But productivity in the sector is limited
LOW CAPITAL, RUDIMENTARY TECHNOLOGY
POOR WORK ENVIRONMENT
….But productivity in the sector is limited
LOW CAPITAL, RUDIMENTARY TECHNOLOGY
POOR WORK ENVIRONMENT
…..will skills training improve productivity and raise the quality of employment in the sector?
In a 2009 study of micro enterprises in the informal sector, entrepreneurs reported these major constraints:
Inadequate access to capital
Low incomes and High risk of failure, 50% fail in first 3 years
Poor technical & business skills, general lack of knowledgeDifficult working environment – double taxation, harassment
Poor business strategy, low rates of return
Poor knowledge of the fee structure, regulations e.t.c.
InterventionKASSIDA SKILLS TRAINING
PROGRAMME
MANAGERIAL(Managers only-same course for all sectors, 24hours of training, 2hrs/day sessions, starts first
TECHNICAL (tailored to each of the 9 sectors – 44 hours of training, at model workshops, 2hr/day sessions
METAL FABRICATON
CAPENTRYCATERING
KNITTING & TAILORING
FOUNDRYFITTING & MACHINING
BARBER SHOPS AND SALOONS
SHOE MAKING
ELECTRICAL
BUSINESS PLANNINGMARKETINGFINANCIAL MANAGEMENT
Outcomes
Enterprise level
Employee level
Household levelImprovement in the standard of living of beneficiaries and their dependants
Efficiency in production•Reduced time taken to produce an item•Reduced cost of production•High product quality•Better workshop organization
Formality•Higher registration•Tax compliance
Firm Growth•Higher employment•Increased turnover•Higher profits
Marketing Skills & Innovation•Better Linkages and innovation in production•Broadening customer base
Opportunities &working conditions•Earnings•Started own business•Credit•Open bank account•Number of jobs offers (as a measure of recognition of improved capacity)
Increased knowledge•Technical methods•Safety practices
NETWORKING- Is new info/skills learned through the training diffuse through business networks? How? Magnitude of impact?
Design - issues
Selection process
796 workshops in 9 sectors applied to KASSIDA’s training
Workshops stratified by sector & grouped into clusters (within 20m) - 228 clusters of firms
identified
Similar clusters are paired according to size of cluster, sector, size of firms, personal
characteristics of entrepreneur.
of 114 clusters with 396 firms randomly selected to receive KASSIDA’s training
…..choosing a cluster
Implementation stages
Firm registration and Listing
Intervention
Baseline survey
Mini-follow up
End line survey
Descriptives from preliminary baseline data
SectorFemale owned
Workers(mean)
Workers (median)
Years of education
Owner Age
Has a business plan
Has an annual Budget
Keeps a ledger
Average monthly profit (USD)
Average Monthly turnover (USD)
Barbershops and Saloons 91.3 2.2 2.0 9.7 34.5 13.0 14.5 11.6
148
492
Carpentry 6.4 2.3 1.0 10.1 38.7 14.9 19.2 8.5
156
866
Catering 98.2 2.4 1.0 7.6 37.0 8.3 7.3 3.7
86
445 Fitting & Machining 0.0 2.9 3.0 12.4 48.1 7.1 50.0 7.1
2,868
8,060
Electrical 9.1 5.7 1.0 11.2 38.0 18.2 9.1 18.2
371
1,167 Foundry & Forgery 21.3 1.7 1.0 7.4 36.0 13.1 18.0 4.9
128
641
Metal fabrication 3.7 4.0 2.0 9.7 41.9 13.5 13.0 12.0
296
1,770
Shoe making 8.3 2.6 5.0 9.3 35.3 5.6 19.4 13.9
224
609
Tailoring 64.6 0.7 0.0 9.6 36.0 7.3 10.9 3.1
146
371
ALL 44.0 2.3 1.0 9.3 37.9 10.7 13.5 7.7
236
993
Major source of skills learning for the sector
Other
Self taught
Formal instutions
Friends and relatives
Apprenticeship (informal)
0 5 10 15 20 25 30 35
..as Uganda thinks about skills development….
Evidence from the IE valuable for the incorporation of informal skills training in the BTVET strategy!!! Intervention a potential solution to how
to effectively reach people in the informal sector who are currently excluded by the formal nature of BTVET