SERVICES TRAINING FOR
Business Development Services
Training for COMPASS Grantees
Moses Mwalyambwile (Consultant)
Development Alternatives, Inc. COMPASS
7250 Woodmont Ave., Suite 200 Phekani House
Bethesda, MD 20814 Glyn Jones Road
USA Private Bag 263
Tel: 301-718-8699 Malawi
e-mail: firstname.lastname@example.org Telephone & Fax: 622-800
In association with:
Development Management Associates USAID Contract: 690-C-00-99-00116-00
Lilongwe Activity: 612-0248
TABLE OF CONTENTS
Executive summary 1
Methods used in evaluation training 4
Summary matrix of training results 7
Cross-cutting issues 9
Potential business opportunities for diversification 11
Annex 1: Names of the participants 13
Annex 2: COMPASS Publications 16
CABUNGO Capacity Building Unit for Non-Governmental Organisations
COMPASS Community Partnerships for Sustainable Resource Management in
ED Entrepreneurship Development
BDS Business Development Services
GoM Government of Malawi
B/SHEET Balance Sheet Statement
P&L Profit and Loss Statement
SME Small and Medium Enterprise
SOVCRAFT South Viphya Craft Association
NGO Non Governmental Organisation
1 EXECUTIVE SUMMARY
Most studies on Micro enterprise development reveal that the intrinsic
problem facing the creation of successful SMEs is lack of entrepreneurial
skills. The COMPASS project in Malawi therefore has a programme that
places a sharp focus on ED (Entreprenuership Development) for certain
targeted business groups. COMPASS carefully selected those groups that
seemed most enterprising: SOVCRAFT, Magomero Fruit Processors, Tsogolo
la Ana, Ndirande women briquette makers, Matindi Youth Organisation and
Chiwembe women mushroom growers.
Through the provision of business development services to the targeted
beneficiaries, the COMPASS project has been able to provide training in
business management and capacity building skills. This document reports on
how such training was conducted in the months of June, July and August
2003. This was a demand-driven programme that was heavily participatory. A
sound accomplishment of this task depended a lot on participation, which took
place at all levels including the evaluation of the programme. Participation
brought with it cross fertilisation of various ideas on what could easily work
well and truly benefit the participants. Where possible, attempts were made to
try to internalize this initiative to ensure sustainability of the programme.
However, due to time and resource constraints, the training programme had
limited follow-up support.
Profound and sincere thanks are due to the COMPASS staff and other NGOs
such as CABUNGO for constructive support and intellectual advice on this
training programme. Thanks should also be extended to Magomero Fruit
Processors, Matindi Youth Organisation and SOVCRAFT for their enthusiasm
and level of participation in this programme.
The COMPASS project in Malawi has been involved in the creating
sustainable natural resource-based businesses. Several studies have been
undertaken to work out how best this can be achieved. Through such studies
COMPASS has been able to explore a number of business development needs
for the targeted beneficiaries. A consultant was therefore engaged to provide
Business Development Services meant to build on, and incorporate training in
the fundamentals of entrepreneurship.
The business development consultant visited the targeted groups to conduct
training whose standard contents addressed at least the following areas
Managing income and expenses, managing revenues and profits, sharing
benefits and apportioning costs
Principles of supply and demand
Marketing concept and customer focus
Quality assurance (products and services)
Individual and group responsibilities and performance
Financial management fundamentals including cash flow management
Transparency, responsibility and accountability
Legal aspects of registration and incorporation and liability
A number of meetings with COMPASS officials and project-targeted
beneficiaries were held to discuss the contents, structure and methodologies
for the training and relevant Business Development Services.
Initial contacts with the members of each targeted group were of critical
importance in providing information concerning conditions at the start of the
training (baseline data) and expected conditions at end of the training.
Baselines eventually provided a basis against which progress was to be
measured monitored and reported upon. The baseline revealed the following
Ndirande briquette Absence of record keeping skills.
makers Ignorance about marketing issues, customer focus, & quality
Dissatisfaction and arguments about benefits sharing
arrangements. Punctuality & absenteeism being singled out as
the main problems.
Lack of proper administrative and operational structures
resulting in work inefficiencies.
Magomero fruit Poor record keeping skills.
processing enterprise Lack of knowledge on basic product costing, issues of demand
and supply, market equilibrium and product pricing.
Inability to manage working capital—stocks and cash
Tsogolo la Ana Absence of record keeping.
No transparency and accountability.
Insufficient knowledge on product costing and poor pricing.
Lack of basic internal controls.
Matindi Youth Need for group reorganisation in readiness for a planned major
Ignorance about marketing concepts.
No idea about sharing benefits fairly.
Lack of accounting knowledge.
SOVCRAFT Problem of sharing benefits fairly.
Hazy idea on price determination by market forces.
Poor knowledge about product costing and pricing.
The concept of participation was employed and proved essential. It provided
spontaneous cooperation between the targeted beneficiaries, their agreement to work
together and to contribute actively to the choice and implementation of training
interventions and programs that would help achieve their goals as viable
entrepreneurs. This therefore avoided application of a standard training package for
all targeted groups. For example, most groups sought to include a session that looked
at how they can write business proposals for funding community projects. In other
groups, it was found that they lacked most record keeping skills. The Matindi Group
became particularly interested in establishment and running of cooperatives.
Participation is considered a strategic choice and a necessary requirement to meet the
challenges that the business environment imposes on the socio-economic, political,
and cultural aspects of life in all societies. Accordingly, participation allowed all
groups to take part in decision-making processes that affect their lives. Given the
advantages of participation, it was essential that all interventions be based on
participation. As a result, any attempted follow up and evaluations were also
Training sessions conducted for each group were subjected to continuous monitoring
and evaluation by the trainers and trainees. The inclusion of the trainees in the
evaluation process was extremely helpful in updating and modifying the course
contents for both the betterment and satisfaction of all participants. Evaluation was an
integral part of the activity’s continuous improvement process. Additionally, it was
used as a basis for observing results. It therefore became necessary that measurable
objectives and performance indicators be developed.
4 METHODS USED IN EVALUATING TRAINING
The methods of evaluation used were objective observation, comments and
feedback from the participants and assignments.
Throughout the training, participants were continuously asked to comment on
how well they liked a topic under discussion. Participants were later asked to
discuss any problems they faced and demonstrate how they would solve them.
Hands on problem solving therefore became the hallmark of the continuous
The participants felt the time for training was not enough and did ask if
follow-up visits could be arranged to check on their progress. This would
allow more reinforcement of the concepts learnt.
At the end of training, each group was left with a hands-on assignment to do.
This was a practical task, which differed depending on each group’s needs.
However, common tasks given to all groups included:
1) Up-date the set of accounting ledgers.
2) Record a list of all assets and liabilities.
3) Prepare profit and loss statement.
4) Strategize and plan how to keep focus on the customer.
5) Decide what each group would do to improve and maintain quality
of their products.
At the time of writing this report, most groups had not finished their
Meeting and training the targeted groups took place as follows:
Group No of Participants Dates Held
Chiwembe dam mushroom growers 6 None 24 June 03
(total trained were 6 out of which 5 were
SOVCRAFT 20 23 30 June to 4 July 03
(Total trained were 43 of which 38 were
Ndirande briquette makers 15 None 9 – 13 July 03
(total trained were 15 and all women)
Magomero Fruit Processors 12 None 14-18 July 03
(total trained were 12 and all women)
Tsogolo la Ana 25 10 4 – 8 Aug 03
(total trained were 35 and 8 were women)
Matindi Youth Organisation 15 10 11–15 August 03
(total trained were 25 and 6 were women)
The intended participants are those that were drawn from the target groups. Since the
targeted groups were in some cases a part of a larger business group, beneficiaries of
the training inevitably included unintended participants. Inclusion of unintended
participants in the training programme was a positive externality that added synergy
and avoided discrimination to some group members, which in turn promoted group
5 SUMMARY MATRIX OF TRAINING RESULTS
TRAINING IMPACT INDICATORS RESULTS
COMPONENT USED AND TRACKED
Record keeping skills Ability to keep & Ledgers were set up & being up-dated.
maintain ledgers Matindi Youths and Magomero Food
Satisfaction & processing Enterprise did best in this
relevance on a scale exercise
of 1-5 (1 being low) Satisfaction & relevance rated 5
Transparency &, Satisfaction & Satisfaction & relevance rated 5
accountability, internal relevance on a scale Internal controls agreed and implemented
controls (audit) of 1-5 (1 being low) on payments, receipts, cash & stocks.
Groups discuss & Sovcraft, Matindi youths and Magomero
agree what controls were best performers
are necessary & cost Groups agreed on policies aimed at
effective improving transparency e.g. right of
Groups discuss on access to books of accounts for everyone,
how transparency can democratic decision-making
Financial management, - Satisfaction & Satisfaction & relevance rated 5
working capital relevance on a scale Assignments given to prepare basic P&L
management and of 1-5 (1 being low) and list group’s assets. Only one group
preparation of profit and Ability to prepare from Sovcraft submitted the assignment
loss statement; basic P&L statement
preparation of the balance and B/sheet
sheet Ability to monitor &
Marketing issues, quality Satisfaction & Satisfaction & relevance rated 5
assurance & control, relevance on a scale Assignment given to come up with a plan
demand & supply of 1-5 (1 being low) on how they intend to ―keep eye on their
analysis, product pricing; customer‖. Only one group from
customer focus, Sovcraft submitted the assignment
managing expenses & More assignments were given to each
revenues group to come up with; a) basic market
plan, b) a reasonable & profitable price
for the product, c) internal controls on
managing revenues & expenses. Initial
results were encouraging for all but one
of the groups (Tsogolo la Ana)
Time insufficient for this component
Business associations – Satisfaction & Satisfaction & relevance rated 5
legal issues including relevance on a scale Time insufficient for this component
member liability of 1-5 (1 being low) Follow-up visits not done to check on
Groups to come up skills
with a written Matindi Youth & Tsogolo la Ana were
partnership enthusiastic about having a properly
agreement or constituted organisation.
articles of association
Project proposal writing Satisfaction & Satisfaction & relevance rated 5
relevance on a scale Time insufficient for this component
of 1-5 (1 being low) Follow-up visits not done to check on
Groups coming up skills
with project Matindi Youths & Magomero Fruit
proposals meeting Processing Enterprise had already
donor requirements identified business ideas for funding &
Groups coming up had started preparing proposals for
with ideas that can funding.
6 CROSS-CUTTING ISSUES.
To all business groups trained, the trainer noted a number of common issues
relevant to all targeted beneficiaries and their goals. Such issues include,
business association development, demand for increased access to business
development facilities, sustainable livelihoods and gender. These issues
represent some commonalties across the goals of the targeted beneficiaries.
They are also important to sustainable business development.
6.1 Increased Access to business development facilities
All targeted business groups visited were appreciative of the technical
assistance needed to build commercially viable businesses. Such facilities
have also been useful in giving the business groups an opportunity to take
other broader initiatives to develop sustainable and dynamic enterprises.
It has also been noted that such facilities will help the targeted business groups
to attract necessary financing for their ventures apart from increasing
entrepreneurial skills. Most business groups are now organisationally able to
handle finances at a basic level.
There is now apparent demand for the training of trainers and facilitators in
the business development programme underway. To achieve this, there is need
to encourage innovative approaches to learning through, for example, the
formation of entrepreneur clubs under the guidance of a facilitator. It would be
most appropriate if such training focused more on entrepreneurial attitudes.
6.2. Business Association Development
There is need to support the establishment of a business association. The
business association can play a central role in providing support services to
member business groups and in representing their interests to the government.
6.3. Sustainable livelihoods
All members of the business groups see their entrepreneurial activities as a
means to generate income for improved livelihoods and employment as well
as sustainable development.
The term gender broadly refers to balanced participation (between men and
women) in economic, political and social life. In Malawi, however, as in most
parts of the developing world, women have lagged in economic, political, and
Gender equality is an internationally promoted ideal and has significant
development implications as far as equity and efficiency is concerned. Gender
balance is also important in maximising the economic development potential
of any society.
It is therefore pleasing to note that women’s participation in all these targeted
groups is significant thus contributing to narrowing of the gap between men
and women in economic life.
7 POTENTIAL BUSINESS OPPORTUNITIES FOR
Most of the business groups visited felt they could make more money in
addition to reducing the variability of their earnings if they had a chance to
diversify. The table below shows some of the viable business ideas.
BUSINESS GROUP POTENTIAL AREA OF
fruit juice making
Chiwembe dam mushroom mushroom spores multiplication
mushroom juice making
Magomero Fruit Bee keeping
Matindi Youth Grafting other fruits apart from citrus fruits
Ndirande Briquette Makers Mushroom growing
Tsogolo La Ana Fruit juice making
Passenger transport service
Support to these business groups requires a sustained focus on providing business
development services. To achieve this, there is need to make sure that the services are
tailor-made and that the groups themselves are able to train their members. More
trainings and follow-up visits are required to re-inforce concepts learnt. To ensure
sustainability in the availability of such a service, there must be an increased effort on
internalization of the training so that there is local capacity to continue. In addition,
internalized training would be sustainable only if the service was provided at a fee.
ANNEX 1: NAMES OF PARTICIPANTS
TSOGOLO LA ANA
MAGOMERO FOOD PROCESSORS
(All women group)
NDIRANDE BRICKET MAKERS
(All women group)
Lyness Naphazi (deceased)
Chitala Christina (deceased)
CHIWEMBE MUSHROOM GROWERS
MATINDI YOUTH ORGANISATION
(Names of active members who attended all training sessions)
ANNEX 2: COMPASS PUBLICATIONS
Document Title Author(s) Date
Document 1 COMPASS Year 1 Work Plan COMPASS Jul-99
Document 2 COMPASS Small Grants Management Manual Umphawi, A., Clausen, R., Watson, Sep-99
Document 3 Year 2 Annual Work Plan COMPASS Dec-99
Document 4 July 1 - September 30, 1999: Quarterly Report COMPASS Oct-99
Document 5 Training Needs Assessment: Responsive Modules & Training Approach Mwakanema, G. Nov-99
Document 6 Guidelines and Tools for Community-Based Monitoring Svendsen, D. Nov-99
Document 7 Policy Framework for CBNRM in Malawi: A Review of Laws, Policies and Trick, P. Dec-99
Document 8 Performance Monitoring for COMPASS and for CBNRM in Malawi Zador, M. Feb-00
Document 9 October 1 - December 31, 1999: Quarterly Report COMPASS Jan-00
Document 10 Workshop on Principles and Approaches for CBNRM in Malawi: An Watson, A. Mar-00
assessment of needs for effective implementation of CBNRM
Document 11 January 1 - March 31, 2000: Quarterly Report COMPASS Apr-00
Document 12 Thandizo la Ndalama za Kasamalidwe ka Zachilengedwe (Small Grants Manual Mphaka, P. Apr-00
Document 13 Njira Zomwe Gulu Lingatsate Powunikira Limodzi Momwe Ntchito Ikuyendera Svendsen, D. - Translated by May-00
(Guidelines and Tools for Community-based Monitoring in Chichewa) Mphaka, P. and Umphawi, A.
Document 14 Grass-roots Advocacy for Policy Reform: The Institutional Mechanisms, Sector Lowore, J. and Wilson, J. Jun-00
Issues and Key Agenda Items
Document 15 A Strategic Framework for CBNRM Media Campaigns in Malawi Sneed, T. Jul-00
Document 16 Training Activities for Community-based Monitoring Svendsen, D. Jul-00
Document 17 April 1 - June 30, 2000: Quarterly Report COMPASS Jul-00
Document 18 Crocodile and Hippopotamus Management in the Lower Shire Kalowekamo, F. Sep-00
Document 19 Cost-Sharing Principles and Guidelines for CBNRM Activities Moyo, N. Sep-00
Document 20 Work plan: 2001 COMPASS Nov-00
Document 21 July 1 - September 30, 2000: Quarterly Report COMPASS Oct-00
Document 22 Opportunities for Sustainable Financing of CBNRM in Malawi: A Discussion Watson, A. Nov-00
Document 23 Framework for Strategic Planning for CBNRM in Malawi Simons, G. Nov-00
Document Title Author(s) Date
Document 24 Kabuku Kakwandula Ndondomeko ya Thumba Lapadera la Wupu wa Umphawi, A., Clausen, R. & Dec-00
COMPASS (ChiTumbuka version of the COMPASS Small-grant Manual) Watson, A. Translated by Chirwa,
T.H. & Kapila, M.
Document 25 COMPASS Performance and Impact: 1999/2000 COMPASS Nov-00
Document 26 October 1 - December 31, 2000: Quarterly Report COMPASS Jan-01
Document 27 COMPASS Grantee Performance Report Umphawi, A. Mar-01
Document 28 January 1 - March 31, 2001: Quarterly Report COMPASS Apr-01
Document 29 Natural Resource Based Enterprises in Malawi: Study on the contribution of Lowore, J. Apr-01
NRBEs to economic development and community-based natural resource
management in Machinga District
Document 30 Proceedings of the First National Conference on CBNRM in Malawi Kapila, M., Shaba, T., Chadza, W., Jun-01
Yassin, B. and Mikuwa, M.
Document 31 Natural Resource Based Enterprises in Malawi: Action Plans Watson, A. Jun-01
Document 32 Examples of CBNRM Best Practices in Malawi Moyo, N. & Epulani, F. Jun-01
Document 33 Media Training for CBNRM Public Awareness Kapila, M. Jun-01
Document 34 April 1 - June 30, 2001: Quarterly Report COMPASS Jul-01
Document 35 Strategic Plan for CBNRM in Malawi CBNRM Working Group Sep-01
Document 36 Work plan: 2002 COMPASS Oct-01
Document 37 July 1 - September 30, 2001: Quarterly Report COMPASS Oct-01
Document 38 COMPASS Performance and Impact: 2000/2001 COMPASS Dec-01
Document 39 Coordination of CBNRM in Malawi: Financing Options Watson, A. Jan-02
Document 40 Performance Monitoring for CBNRM in Malawi CBNRM Working Group Oct-02
Document 41 October 1 – December 31, 2001: Quarterly Report COMPASS Jan-02
Document 42 COMPASS Field Level Training Impact Evaluation Moyo, N. Feb-02
Document 43 COMPASS Grantee Performance Report: 2001 Umphawi, U. Apr-02
Document 44 COMPASS Assessment: 2001 Sambo, E., Carr, S., Omambia, D. Apr-02
& Moore, T.
Document 45 January 1 - March 31, 2002: Quarterly Report COMPASS Apr-02
Document 46 Community Tourism and Enterprise Training Manual Kacal, S. Jun-02
Document 47 Charcoal, Chiefs and Chambo: Status of CBNRM Policies in Malawi Trick, P. & Manning, L. Jun-02
Document 48 April 1 - June 30, 2002: Quarterly Report COMPASS Jul-02
Document 49 Business Development Services for Natural Resource Based Enterprises Magai, G. & Nthambi, T. Sep-02
Document Title Author(s) Date
Document 50 July 1 – September 30, 2002: Quarterly Report COMPASS Oct-02
Document 51 Work plan: 2003 COMPASS Dec-02
Document 52 COMPASS Performance and Impact: 2001/2002 COMPASS Oct-02
Document 53 GIS for Natural Resources Managers Craven, D. Nov-02
Document 54 Proceedings of the Second National Conference on CBNRM in Malawi Malembo, L., Chadza, W., Dec-02
Kamuloni, S. & Kanjedza, R.
Document 55 Impact of HIV/AIDS on Natural Resource Management in Malawi Page, S. Dec-02
Document 56 October 1 – December 31, 2002: Quarterly Report COMPASS Jan-03
Document 57 The Role of the Private Sector in CBNRM in Malawi Watson, A. Jan-03
Document 58 COMPASS Grantee Performance: 2002 Ndovi, W. & Godfrey, G. Apr-03
Document 59 COMPASS Gender Policy Development Workshop Omambia, D. Mar-03
Document 60 January 1 – March 31, 2003: Quarterly Report COMPASS Apr-03
Document 61 Advanced GIS for Natural Resource Managers Craven, D. Apr-03
Document 62 Introduction to Appreciative Inquiry Msukwa, C.A.P.S., Svendsen, D.S. Apr-03
& Moyo, N.
Document 63 COMPASS Gender Training Manual Omambia, D. May-03
Document 64 Monitoring CBNRM Performance and Impact: 2002 Watson, A. Sep-03
Document 65 Introduction to Appreciative Inquiry: Training Manual Msukwa, C.A.P.S., Svendsen, D.S. May-03
& Moyo, N.
Document 66 Flaming, L.
Assessing the Economic and Financial Benefits of Compass-Supported Community Jun-03
Document 67 April 1 – June 30, 2003: Quarterly Report COMPASS Jul-03
Document 68 COMPASS Performance and Impact: 2002/2003 COMPASS Sep-03
Document 69 Training for Transformation for Six COMPASS Grantees Mwakanema, G. Sep-03
Document 70 COMPASS Summary Report: 1999 - 2003 Watson, A. Sep-03
Document 71 Bukhu Lophunzitsira Anthu Mabizinezi A Ntchito Zokopa Alendo M’madera Kacal, S. Nov-03
Document 72 Zokambirana Zokhudza Mgwirizano Pantchito Yosamalira Malo Osungirako Betha, M.R.B. Nov-03
Zachilengedwe A Mwabvi
Document 73 Chambo Restoration Strategic Plan: 2003-2015 Balarin, J. Oct-03
Document 74 July 1 – September 30, 2003: Quarterly Report COMPASS Oct-03
Document 75 COMPASS Grantee Performance Report Addendum: 2003 Ndovi. W. Dec-03
Document Title Author(s) Date
Document 76 Business Development Services Training for COMPASS Grantees Mwalyambwile, M. Dec-03
Internal Report 1 Building GIS Capabilities for the COMPASS Information System Craven, D. Nov-99
Internal Report 2 Reference Catalogue (2nd Edition) COMPASS Feb-01
Internal Report 3 Workshop on Strategic Planning for the Wildlife Society of Malawi Quinlan, K. Apr-00
Internal Report 4 Directory of CBNRM Organizations (2nd Edition) COMPASS Jan-01
Internal Report 5 Proceedings of Water Hyacinth Workshop for Mthunzi wa Malawi Kapila, M. (editor) Jun-00
Internal Report 6 COMPASS Grantee Performance Report Umphawi, A. Jun-00
Internal Report 7 Examples of CBNRM Best-Practices in Malawi Moyo, N. and Epulani, F. Jul-00
Internal Report 8 Software Application Training for COMPASS Di Lorenzo, N.A. Sep-00
Internal Report 9 Directory of COMPASS ListServ Members Watson, A. Jan-01
Internal Report 10 Introductory Training in Applications of Geographic Information Systems and Kapila, M. Feb-01
Internal Report 11 COMPASS TAMIS Grants Manual Exo, S. Mar-01
Internal Report 12 Review of Recommendations of the Lake Chilwa and Mpoto Lagoon Fisheries Nyirenda, K. May-01
By-Laws Review Meeting
Internal Report 13 End-of-Term Evaluation of the Co-Ordination Unit for the Rehabilitation of the Sambo, E.Y. Sep-01
Internal Report 14 Mwabvi Wildlife Reserve Co-Management Agreement Negotiations Betha, M.R.B. Feb-03
Internal Report 15 Reducing Vulnerability to HIV/AIDS among COMPASS Grantees Page, S. Mar-03
Internal Report 16 COMPASS Gender Policy Omambia, D. Mar-03
Internal Report 17 Assessment of Experiences with Participatory Approaches in CBNRM Msukwa, C.A.P.S. & Svendsen, Apr-03
Internal Report 18 HIV/AIDS Adaptation & Mitigation Activities in Rural Malawi Irwin, B. Jun-03
Internal Report 19 Board Management Training for the Lower Shire Protected Area CBOs and Bita, R. Jun-03
Internal Report 20 COMPASS Close-Out Plan COMPASS Jun-03
Internal Report 21 Review of HIV/AIDS Adaptation/Mitigation Pilot Project Irwin, B. Sep-03