CEFE

Employment promotion is a highly sensitive issue in politics. In many countries, performance of politicians is measured against achievements in employment policies. These are only to a limited degree shaped by local governments, as for example macroeconomics are determined by national governments and institutions such as reserve banks. Nevertheless, there is indeed scope of manoeuvre for local governments. They may, among other measures, try to promote start-up businesses, as these newcomers are often dynamic and create jobs. This does not only relate to formal companies but also to the so called "informal sector" which in many countries is an important source of income for large parts of the population.

One of the tools promoting start-ups is CEFE. CEFE means "Competency-based Economies through Formation of Enterprise". It is a training methodology, developed and disseminated all over the world by GTZ. It pursues the following objectives:

• Fostering existing entrepreneurs in a way that they expand their business and create more employment,

• strengthening existing micro businesses in order to stabilize their existence, thus preserving existing sources of income,

• promoting start-up entrepreneurs in order to contribute to local economic growth and the creation of new jobs and

• in general, building up business competencies inside an enterprise in order to enable managers as well as employees to perform better in their jobs or in supporting institutions and to create a better understanding for business needs.

CEFE is based on the premise, that start-up entrepreneurs need to have training in management issues, such as business plans, cost and price calculation, marketing, accounting, and personal characteristics of an entrepreneur because they are not familiar with them. Instead, they are very often focusing on the very technical aspects of their business idea and forget about the many other issues that make business work.

The specific value of CEFE as a tool for local economic development is derived from a series of features, that make it distinct from other training methodologies. Among them are its flexibility as far as its adaptation to specific target group needs are concerned and the uniqueness of its pedagogic approach, based on learning from experience and stimulating problem-solving capacities. Apart from this, there are also models as to the introduction of CEFE into areas, where CEFE had not come to be known yet.

Target group orientation and flexibility

CEFE works with a variety of different target groups. These may include, for example, the local cooperative of fishermen, a group of women wanting to enter horticultural production, graduates from a local technical training institute as well as local farmers or artisans who, say, know everything about their trade, but very little about marketing and selling at cost-covering prices. This flexibility is due to the fact, that any CEFE-course can be, and in fact is, tailored to the specific needs of the target groups. This relates to the duration and organizational arrangements as well as to the content of the training. There are modularised courses focusing on one specific aspect (for instance "Improving Production" or "Developing a Market Plan") and lasting only a few hours, and there are others taking a few weeks and covering the whole range of management issues from bookkeeping and cost calculation to credit and marketing. Courses for business start-ups are resulting in the development of a business plan that can be presented to a local bank.

A methodology mobilizing people

CEFE is not the only training methodology for entrepreneurs in the world. However, its didactics make it something unique. The pedagogic approach is called "action oriented and experiential learning". This type of learning is based on the premise that adults are learning much easier, if they "feel", "sense" and "experience" something. For this reason, CEFE exercises are simulating a real-world situation in the class-room, such as a production process or a market. Having passed through a practical experience that leaves some of the participants as winners and others as losers, a discussion is initiated on the reasons for success and failure. At the end of the discussion, the learning points and conclusions for the "real" business world are derived from the exercise and summarized. This kind of learning by letting participants experience something themselves, makes them accept changes more easily. As development requires an openness towards change, CEFE becomes an important tool in preparing and mobilizing people for change.

Another effect is that people are enjoying taking part in CEFE training courses. You will rarely find anyone dropping out from a course, the level of attendance is generally very high, turning CEFE into an effective tool of training.

Introducing CEFE into a local area

There are many ways of introducing CEFE into a local area. One of these approaches is outlined below:

1. In the beginning, an appreciation workshop is conducted, presenting the methodology to representatives of the local authorities, business associations, NGOs and other institutions active in the region. The purpose is to "market" CEFE and make local stakeholders realize the usefulness of the tool as an instrument for local economic development. Very often, the methodology is demonstrated by conducting one or two exercises. An appreciation workshop does usually not last longer than one day.
   

2. The second step is to realize courses with local entrepreneurs. Ideally, the mayor of the municipality or his deputy would attend the opening ceremony. Apart from assisting the target group in developing their businesses, the purpose of this course is to feedback a positive response towards the methodology from the target group to the local stakeholders.
   

3. The third step is about disseminating CEFE on a wider scale. Ideally, one would compile, in coordination with the local stakeholders, an annual programme of CEFE courses for different target groups. There are basically three options to the question who would implement the trainings: the first is to "import" international trainers. This is expensive but may initially be necessary in countries where there had been no CEFE activities so far. The second is to commission national trainers who are based outside the local area and to let them conduct the courses. The third option is to qualify a local institution (e.g. a local business association) and send one or several of its collaborators to a Training-of-Trainers course. This option makes sense in local areas where the demand is high and stable for a few years to come.

The outline above is an "ideal" one and is intended to give an idea of how one could proceed with the introduction of CEFE. The "real" dissemination depends on the specific demand, the institutional set-up and the degree of cooperation between the different stakeholders.

For more information, consult this website.

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