Relevance of Entrepreneurship Training in a Market-Driven Economy [Konayuma]

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National Curriculum Review Symposium Relevance of Entrepreneurship Training in a Market Driven Economy GABRIEL S. KONAYUMA Senior Vocational Training and Training Officer Ministry of Science, Technology and Vocational Training, Zambia e-mail: [email protected] 1- 3 June 2009

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Relevance of Entrepreneurship in a Market Driven Economy

Transcript of Relevance of Entrepreneurship Training in a Market-Driven Economy [Konayuma]

National Curriculum Review Symposium

Relevance of Entrepreneurship Training in a Market Driven EconomyGABRIEL S. KONAYUMASenior Vocational Training and Training Officer Ministry of Science, Technology and Vocational Training, Zambia e-mail: [email protected]

1- 3 June 2009

Lusaka

Ministry of Education - National Curriculum Review Symposium, MICC, Lusaka, 1-3 June 2009

ContentsAbstract Introduction Background 4 SWOT Analysis of Entrepreneurship Training in Zambia Relevance of Entrepreneurship Training in a Market Driven Economy Recommendations Conclusion References 4 6 7 7 8 9 3 3

The Relevance of Entrepreneurship Training in a Market-Driven EconomyGabriel S. Konayuma Relevance of Entrepreneurship Training in a Market Driven Economy

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GABRIEL S. KONAYUMADepartment of Vocational Training and Training, Ministry of Science, Technology and Vocational Training, Lusaka, Zambia; e-mail: [email protected]

Abstract:A number of African countries that have embraced economic reforms have experienced a shrinking formal sector. This has been due to privatisation of parastatal companies and state-owned companies. Zambia is one of the African countries that has adopted a market driven economy. This has led to the growth of the informal sector. A number of people in the informal sector lack adequate entrepreneurial and technical skills. The Technical Education, Vocational and Entrepreneurship Training (TEVET) sector has been reformed to make it responsive to the changing scenario in the reformed economy. Entrepreneurship training for the formal and informal sector has been introduced in TEVET institutions. A number of organisations have been formed to provide training in skills required in the informal sector. The TEVET Policy aims to improve technical training and vocational training and link it to the requirements of the employment sector. The TEVET policy recognises the following categories of people in our society as the most likely to benefit the country from this training: school leavers (i.e. Grade 7, Grade 9 and Grade 12); employees in the formal sector; entrepreneurs, both in formal and informal sector; the unemployed and underemployed including employees in the informal sector; women; and retrenches. Entrepreneurship training is integrated in TEVET curricula. A number of institutions are offering entrepreneurship training. Is this meeting the needs of both the formal and informal sectors? Are trainees becoming employers and starting their own enterprises or most still expect employment? Is the Entrepreneurship Training relevant to the market driven economy? This paper addresses these issues by examining relevant documents such as the TEVET Policy, Training Policy, Vision 2030 and Entrepreneurship curricula.

Objectives of the Paper: To contribute to the development of strategic interventions that promote sustainable socio-economic development in Zambia; To assess how the TEVET Policy has addressed entrepreneurship training in Zambia; To identify how the country hopes to achieve a middle-income economy through strengthened entrepreneurship training; Key words: Entrepreneurship; Entrepreneurship training; Curriculum; market driven economy. INTRODUCTION This paper looks at the status of entrepreneurship training in Zambia. It also examines the strengths, weaknesses, opportunities and threats of entrepreneurship training in Zambia. Some promising practices of entrepreneurship training in Zambia. The paper then explores the relevance of entrepreneurship training in a market driven economy. The paper concludes with some recommendations on how present initiatives in entrepreneurship training can be enhanced. The objectives of the paper are: To contribute to the development of strategic interventions that promote sustainable development in Zambia through an inclusive and accessible TEVT system Zambia; To assess how the TEVT sector has addressed issues of distance and e-learning in Zambia; To identify what the country hopes to achieve through a strengthened TVET system that uses new ICT based solutions;

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BACKGROUND Zambia is a landlocked country located in Southern Africa. Zambia has eight numbers. Very few African nations have such an opportunity of having eight neighbours! Give figures of total population of Zambian neighbours. Zambia has a total surface area of 752,614 square kilometres. The population is approximately 12 million and the population growth rate is 3%. Zambia is one of the most urbanised countries in Sub-Saharan Africa. The administrative capital is Lusaka while Livingstone, home of the Victoria Falls (one of the seven wonders of the world) is the tourist capital. Ndola and Kitwe are the other major cities of Zambia. For administrative purposes Zambia is divided into nine provinces. English is the official language. Cinyanja, Chibemba, Chitonga, Silozi, Kikaonde, Luvale and Lunda are the seven major languages spoken by the majority of Zambians and used on radio and television programmes. Economy From the 1990s Zambia has adopted a free-market economy. The key opportunity sectors are agricultural production, energy, mining, manufacturing, transportation and tourism. Current Education System Zambias education system from early childhood to university education is governed by the Education Policy: Educating Our Future of 1996. The TEVET sector is governed by the TEVET Policy of 1996. Entrepreneurship Training in Zambia In the pre-independence days in Zambia, there were a very small number of businessmen who could be called entrepreneurs. By the time of independence, Zambia did not have businessmen and women who were experienced in handling complex businesses. African businesses only started to grow when a cash economy became the standard for business transactions. Zambia gained its independence with a less than well-developed African bourgeoisie, ill-equipped to administer the economy (Chipungu, 1992:174-175). Entrepreneurship in Zambia has arisen due to a number of factors. Some have started enterprises due to retrenchments as a consequence of privatisation of parastatal firms between 1992 and 1999 (Konayuma, 2006: 29). Others have become entrepreneurs to supplement their incomes in order to meet family budget needs. A number of government ministries have policies that support entrepreneurship development. These include the Technical Education, Vocational and Entrepreneurship Training Policy, the Youth Policy, the Commercial, Trade and Industrial Policy and the Labour and Social Security Policy. Entrepreneurship training is a relatively new concept. Some people believe that entrepreneurs are born and that it people cannot be taught to become entrepreneurs. Many entrepreneurs would argue that to a certain extent this may be true, but many skills, which are needed for success, can most definitely be learned. Some entrepreneurs may wish that they had been given the opportunity! Entrepreneurship training is useful in proving tomorrow's employers the training they need to create new business prospects. Over the past decade entrepreneurship has been taught as a stand-alone subject in TEVET institutions in Zambia. However, the Technical Training, Vocational and Entrepreneurship Training Authority (TEVETA) recently organised workshops where trainers from TEVET institutions were trained in integrating entrepreneurship into various training programmes (Konayuma, 2006:6).

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Entrepreneurship training has generally been absent from the primary, secondary and university training. At universities, it is offered mostly to students that are doing business studies. Thus entrepreneurship is not viewed as a tool that can be used to develop innovative and creative skills in students that can lead them to become entrepreneurs. In TEVET sector though, entrepreneurship has been taught for the past fifteen years as a stand-alone subject and more recently it has been integrated into the various curricula. Is entrepreneurship training as it is taught in the TEVET sector relevant in Zambias economy which is market -driven? It is important at this stage to consider a working definition of entrepreneurship. Entrepreneurship is the process whereby an individual or a group of individuals uses organised efforts and means to pursue opportunities to create value and growth by fulfilling wants and needs through innovation and uniqueness, no matter what resources are currently controlled (Robbins and Coulter, 2004:43). Some of the major challenges to entrepreneurship training include: Inadequate Entrepreneurship Trainers: TEVETA has made efforts to address the issue of inadequate trainers in entrepreneurship. This has been by organising training of trainers workshops at which experts in entrepreneurship have taken participants through aspects of entrepreneurship training and integration of entrepreneurship into the training programmes. Some institutions have applied the lessons learnt into their institutions while others have not yet begun to integrate entrepreneurship training in their programmes. At a consultative forum held for institutions under the Ministry of Science, Technology and Vocational Training, it was noted that a number of them were still struggling to implement the guidelines on entrepreneurship training in the TEVET Policy and TEVET Policy Strategy Paper. Lack of Appropriate Training Materials: Though some training providers have made efforts to develop training materials, there still remains need for learning materials to be developed that are based on the TEVETA approved curriculum. Some institutions have bought Entrepreneurship textbooks that TEVETA offered for sale. Currently TEVETA has advertised for consultants to develop learning materials for trainees in TEVET. It is hoped that these materials will best suit the needs of trainees and enable them gain a better understanding of the entrepreneurial competencies in the curricula. Lack of Appreciation of Entrepreneurship Training: A number of trainees undertake vocational training with the belief that they will get employed after graduation. Not many see themselves becoming self-employed immediately after graduation. Some do not see the benefits of entrepreneurship training. This is also extended to trainers who feel that trainees only need technical skills and not entrepreneurship training. In addition, it is not easy for trainers who are not entrepreneurial to appreciate entrepreneurship training. The same applies for training providers that are not entrepreneurial. They would not be appropriate role models for the trainees (Konayuma, 2006:8). Poor Entrepreneurial Culture Building an Entrepreneurial culture to promote the right kind of entrepreneurship in our Zambia and Africa as a whole calls for good strategies. Entrepreneurs like any other set of people thrive most where they are recognized most. The entrepreneurial culture in Zambia is still growing. This could be attributed to business practices among Zambians before independence. In the pre-independence days in Zambia, there were a very small number of businessmen who could be called entrepreneurs. By the time of independence, Zambia did

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not have businessmen and women who were experienced in handling complex businesses. African businesses only started to grow when a cash economy became the standard for business transactions. Zambia gained its independence with a less than well-developed African bourgeoisie, ill-equipped to administer the economy (Chipungu, 1992:174-175). SWOT ANALYSIS OF ENTREPRENEURSHIP TRAINING IN ZAMBIA In order to assess the relevance of entrepreneurship training in a market driven economy, there is need to look at the strengths, weaknesses, opportunities and threats of entrepreneurship training. This is done by looking at entrepreneurship training in the TEVET sector. Strengths of Entrepreneurship Training in Zambia Some of the strengths of entrepreneurship training in Zambia include: (a) Growing interest in entrepreneurship and small business management by a number of youths; (b) Number of staff with some training of trainers in entrepreneurship; (c) Supported by relevant policies e.g. TEVET, Labour, Commercial and Youth policies. Weaknesses of Entrepreneurship Training in Zambia (a) Lack of experienced entrepreneurs as entrepreneurship instructors; (b) Lack of adequate training materials for entrepreneurship training; (c) Inadequate or lack of business incubators that provide support services and nurture students; (d) Lack of appropriate entrepreneurship models to support entrepreneurship training. (e) Teaching of entrepreneurship like any other subject and in an academic manner. Opportunities for Entrepreneurship Training in Zambia (a) Growing number of successful entrepreneurs who can be used as role models and as trainers; (b) Entrepreneurship training materials available on the Internet; (c) Availability of space and/or workshops in training institutions and industries that can be used as business incubators; (d) Best practice of models of entrepreneurship within Zambia and internationally; (e) Shrinking formal sector; (f) Provision of toolkits for TEVET graduates; (g) Increasing number of institutions providing entrepreneurship training. Threats to Entrepreneurship Training in Zambia (a) Lack of implementation of policies that support entrepreneurship; (b) Persons that want to earn very large profits in a very short time without undergoing any training and having appropriate entrepreneurship experience; (c) Lack of good entrepreneurship curricula entailing that entrepreneurship is taught in a haphazard manner.

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RELEVANCE OF ENTREPRENEURSHIP TRAINING IN A MARKET DRIVEN ECONOMY Entrepreneurship training is relevant in a market-driven economy for a number of reasons. Some of these are: (a) (b) (c) (d) It develops creativity and innovation that are required for one to take advantage of the business opportunities offered in a market-driven economy; It exposes students to successful role models and highlights the challenges they have faced and how they have overcome; It provides students with knowledge, skills and attitudes that enable them to create wealth and jobs in a market-driven economy; It provides students with confidence to become entrepreneurs in a challenging market environment.

RECOMMENDATIONS FOR IMPROVING ENTREPRENEURSHIP TRAINING IN ZAMBIA In order to strengthen entrepreneurship training in Zambia and other African countries there is need to vocationalise general education, set up business incubators in communities, include aspects of psychology of would be and actual entrepreneurs in entrepreneurship training and document best practices in entrepreneurship training in Zambia and other African nations. Vocationalising General Education Vocational education and entrepreneurship training needs to be introduced in the general education system. This should be done from nursery school preferably. Introducing entrepreneurship training at an early stage is important for those pupils that may not proceed beyond grades 7, 9 or 12. In addition, entrepreneurship and vocational education when studied much earlier will form a good foundation for trainees that enter the TEVET system at grades 9 or 12. Establishing Entrepreneurship Development Centres Trainees need good models for their entrepreneurship training. Entrepreneurship theory needs the backing of business incubators to offer business support and role models to budding entrepreneurs. Zambia has had entrepreneurship development centres in the past. Lessons learnt from the operation of these centres can be used to improve the functioning of the setting up of new ones. These centres should provide all the moral support, technical and business support so that a trainee can have a good start in their enterprise. In addition, training institutions need to be entrepreneurial in their management and how they operate. This acts as a practical living example to trainees who can relate the entrepreneurship theory to what they see in the business management of their institution. Twin Palm Fountain College in Southern Province offers practical business management training to its trainees. They are provided with livestock and a garden to grow vegetables which are then sold to the college or the community. The trainees are able to use the funds realised to subside for their tuition fees.

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Teaching Psychology in Entrepreneurship Training The psychological make-up or mindset of an entrepreneur is important in determining whether an entrepreneur will succeed or not. Trainees from various family, educational, tribal and racial backgrounds have different ways of conducting business. As entrepreneurship involves high levels of risk taking and innovation, trainees need to have their mental capacity boosted. Hisrich (2005:20) states that the skills required by entrepreneurs can be classified into three main areas: technical skills, business management skills, and personal entrepreneurial skills. These skills need to be well and consistently taught in order to develop a well-rounded entrepreneur. Documenting Best Practices in Entrepreneurship Training Documenting best practices in entrepreneurship training is key to ensuring that trainers have examples that they can emulate. In Zambia, the Teachers Vocational Training Centre (TVTC) is one of the promising institutions practicing best practices in entrepreneurship training. The centre trains trainers for vocational institutions in Zambia. Entrepreneurship at TVTC has been mainstreamed by: Integrating entrepreneurship in colleges curricula Developing a diploma in Entrepreneurship Designing short tailor-made courses that are both standardized and customized. TVTC has also converted a conference centre into a fully fledged business centre. The research and consultancy forms the business wing of the college. This is an example of a training institution being entrepreneurial. TVTC also has embarked on having some of its trainers undertaking Masters in Business Administration programme. The college plans to develop an Entrepreneurship Centre which will be a visible structure for trainees to get business incubation. Plans are also underway to develop links with relevant stakeholders. CONCLUSION The paper has highlighted the strengths, weaknesses, opportunities and threats of entrepreneurship training in Zambia. It has also discussed the relevance of entrepreneurship in a market-driven economy. Recommendations have been made to improve entrepreneurship training in Zambia. These were: vocationalising general education, establishing entrepreneurship development centres, teaching psychology in entrepreneurship training and documenting best practices in entrepreneurship training. In order to ensure that entrepreneurship training is relevant in a market-driven economy there is need to ensure that a holistic curriculum review is undertaken to ensure that entrepreneurship is taught and caught at all levels of the education system. This will then enable students in schools to have strong entrepreneurial capabilities, self reliant, be outward looking and enterprising, so that they take advantage of potential and available opportunities (Government of the Republic of Zambia, 2006:2).

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REFERENCES Chipungu, S. N. (ed.) (1992) Guardians in their Time. London: Macmillan Press Limited. Government of Republic of Zambia (2006) Vision 2030. Lusaka: Government of Republic of Zambia. Haan, H. C. (2002) Training for Work in the Informal Sector: New Evidence from Eastern and Southern Africa. Turin: International Labour Organisation. Hisrich, R. D., Peters, M. P. and Shepherd, D. A. (2005) Entrepreneurship. 6th Edition. New York: McGraw-Hill. Konayuma, G. S. (2006) Challenges and Opportunities of Women Entrepreneurs in Zambia. Durban: Management College of Southern Africa. Konayuma, G. S. (2006) Challenges of Shrinking Formal Sector in Africa. Livingstone: Commonwealth Association of Polytechnics in Africa. Ministry of Science, Technology and Vocational Training (1998) Technical Education, Vocational and Entrepreneurship Training Policy. Lusaka: Ministry of Science, Technology and Vocational Training. Robbins, S. P. and Coulter, M. (2004) Management (7th Edition) New Delhi: Pearson Education.

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