KATWE SMALL SCALE INDUSTRY ASSOCIATION INFORMAL SKILLS TRAINING PROGRAMME - UGANDA

1. KATWE SMALL SCALE INDUSTRY ASSOCIATION INFORMAL SKILLS TRAINING PROGRAMME - UGANDA Presented byObertPimhidzai - AFTP2, & Mattea Stein- AFTDEwork done withBbiraBbosa-KASSIDA, Francisco Campos-AFTPM, Peter Dhamuzungu-PSFU, Markus Goldstein-AFTPM, Antoinette Schoar-MIT, BilalZia-DECFP

2. Informal sector biggest form of non-farm employment in Uganda 2ND LARGEST CONTRIBUTOR TO NET JOB CREATION in Uganda, 1992-2006 PROJECTED TO CONTRIBUTE TO 25% OF NEW JOBS IN THE NEXT 10 YEARS

3. ….But productivity in the sector is limited Low capital, Rudimentary technology Poor work environment

4. ….But productivity in the sector is limited Low capital, Rudimentary technology Poor work environment

5. …..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 business strategy, low rates of return Poor technical &business skills, general lack of knowledge Poor knowledge of the fee structure, regulations e.t.c. Difficult working environment – double taxation, harassment

6. Intervention KASSIDA SKILLS TRAINING PROGRAMME BARBER SHOPS AND SALOONS CAPENTRY 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 BUSINESS PLANNING CATERING ELECTRICAL MARKETING FITTING & MACHINING FINANCIAL MANAGEMENT FOUNDRY KNITTING & TAILORING METAL FABRICATON SHOE MAKING

7. Outcomes Household level Improvement in the standard of living of beneficiaries and their dependants Enterprise level Employee level • 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 diffusethrough business networks? How? Magnitude of impact?

8. Design - issues

9. 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

10. …..choosing a cluster

11. Implementation stages Firm registration and Listing Baseline survey Intervention Mini-follow up End line survey

12. Descriptives from preliminary baseline data

13. Major source of skills learning for the sector

14. ..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