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					                 August         2009

 Business Skill TOT Manual


                 To facilitate application of
                 fundamental concepts and
                 principles for enhancement of
                 Income Generating Activities
                 Consultant: BCaD-Consulting Management

                                                    TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................. 2
INTRODUCTION ......................................................................................................................................... 4
   OBJECTIVE .................................................................................................................................................. 5
   DEVELOPMENT METHODOLOGY ................................................................................................................. 5
   TRAINING METHODS ................................................................................................................................... 5
MODULE 1: OPENING AND RELATED ACTIVITIES .......................................................................... 6
   SESSION 0: REGISTRATION .......................................................................................................................... 7
   SESSION 1: WELCOME ADDRESS ................................................................................................................. 7
   SESSION 2: OFFICIAL OPENING .................................................................................................................... 8
   SESSION 3: PARTICIPANT INTRODUCTION ................................................................................................. 8
     Pair introduction: ................................................................................................................................. 8
   SESSION 4: COURSE BRIEFING ..................................................................................................................... 8
   SESSION 5: LEVELING OF EXPECTATIONS .................................................................................................... 9
   SESSION 6: SET COMMON RULES .............................................................................................................. 9
   SESSION 7: SYMBOLS AND NICK NAMES .....................................................................................................10
MODULE 2 DEVELOPING ENTREPRENEURIAL COMPETENCIES ..............................................12
   SESSION 1: JOHARI W INDOW ...................................................................................................................12
   SESSION 2: TO BE OR NOT TO BE .............................................................................................................15
   SESSION 3: STRENGTH DETECTOR ..........................................................................................................19
   SESSION 4: NECKLACE PRODUCTION .......................................................................................................21
MODULE 4: SELECTING IGA..................................................................................................................26
   SESSION 1: IGA IDENTIFICATION..............................................................................................................28
   SESSION 2: PICTURE ASSOCIATION .........................................................................................................30
   SESSION 3: MICRO SCREENING ................................................................................................................32
   SESSION 4: ENVIRONMENTAL SCANNING .................................................................................................36
   SESSION 5: TOWER BUILDING ..................................................................................................................40
   SESSION 6: CALENDAR .............................................................................................................................44
MODULE 5: PLANNING IGA AND STRATEGIZING ...........................................................................52
   SESSION 1: MARKET ROOM SIMULATION (4 PS) .........................................................................................52
   SESSION 2: MARKETING PLAN ...................................................................................................................58
   SESSION 3: PRODUCTION PLAN .............................................................................................................60
   SESSION 4: FINANCIAL PLAN...................................................................................................................62
   SESSION 5: THE BEST DEAL ....................................................................................................................66
   SESSION 6: STRATEGIC RESPONSE EXERCISE .......................................................................................68
   SESSION 7: PERSONAL TIME MANAGEMENT .............................................................................................73
   SESSION 8: SCAMPER MODEL .................................................................................................................76
MODULE 6: BASICS OF BUSINESS MANAGEMENT .......................................................................78
   SESSION 1: RISK MANAGMENT ..................................................................................................................78
   SESSION 2: PRODUCTION AND COSTING .....................................................................................................83
   SESSION 3: SELECTING A PARTNER .............................................................................................................86
   SESSIONS 4: SIMPLE BOOKKEEPING............................................................................................................87
MODULE 7: CLOSING ACTIVITIES .......................................................................................................89
   SESSION 1: W RAP-UP ...............................................................................................................................89

    SESSION 2: CLOSING AND AWARD OF CERTIFICATE.................................................................................89
ANNEXS ......................................................................................................................................................90
    ANNEX1: PROGRAM GUIDE ........................................................................................................................90
    ANNEX 2: GUIDELINES FOR THE FACILITATOR ...............................................................................93
    ANNEX 3: REGISTRATION FORMAT ............................................................................................................94
    ANNEX 4: ATTENDANCE SHEET .................................................................................................................95
    ANNEX 5: DAILY EVALUATION SMILEY FORM ............................................................................................96
    ANNEX 6: LISTS OF MATERIALS AND EQUIPMENTS ....................................................................................97
    ANNEX 7: ADULT LEARNING AND TRAINING METHODS ..............................................................................98
    ANNEX: 8 COST CATEGORIZATION .........................................................................................................104
    NNEX 9 : NAME CHART .............................................................................................................................107
    ANNEX 10: PARTICIPANTS FACILITATION EVALUATUING CHART .............................................................108
    ANNEX 11: PSNP+ PROJECT OPERATION AREA .........................................................................................109


Ethiopia is one of food insecure country on the world. The major cause of food
insecurity in rural area includes land degradation, recurrent drought,
population pressure and subsistence agricultural practice characterized by low
input and out.

In year 2004, Government of Ethiopia, in collaboration with few external
donors, launched productive Safety Net Program (PSNP) in addition to other
food security program to address the food need of chronically food in secured
households in drought prone woredas through transferring food or cash. The
program has two components i.e. direct support and labour intensive public
work. The major objective of government lead PSNP is to graduate farmers after
enhancing household income and protecting livelihood asset depletion.

In year 2009 consortium lead by CARE Ethiopia which include Save-UK, CRS,
REST, SNV and Tuft university initiate PSNP PLUS project to facilitate
graduation of PSNP beneficiaries through linking PSNP-Plus beneficiaries to
micro finance and market. The project funded by USAID and targeted 42,414 HH
from nine woredas of Tigray, Oromia, Amhara regions. The targeted beneficiaries
mainly drive their livelihood from subsistence crop and livestock production. The
community also engaged in various off-farm and         non-farm activities to get
additional family income.

Enhancing HH income demanded developing the business skill of the
beneficiaries, improving access to credit service and linking to market. To assess
the need gap the consulting firm sent team composed of two experts to two
reprehensive woredas were PSNP-Plus project operating. The shallow need
assessment result shows that, Rural Poor families often do not have experience in
critically identifying IGAs, plan for the selected IGAs and managing them with
poor knowledge for the purpose of income generation.

Although many from IGAs supplement family income significantly, few have
experience saving and borrowing money for investment in an IGA. The IGAs
supported through NGO and GO programs are usually larger and more complex
than participants’ previous activities, exposing them to the risk of financial losses
if the activity fails. This risk of failure assumed reduced by providing participants
with training that enables them to systematically assess the appropriateness of
several potential IGAs, comparing each to their specific skills and resources then
appropriately plan and manage IGAs. Analysis of this kind will allow each of them
to choose the IGA that is most suitable, given their individual circumstances.

Therefore, this TOT manual is initiated by the implementing partner organization
to enable implementing project and partner staff conducts BST training for
targeted beneficiaries so that they enhance their family income through effectively
identify, plan and managing their IGAs. The manual is designed for non-literate
PSNP+ beneficiaries who are interested in starting up and improve on their
income generating activities (IGAs).


The general objective of this BST TOT manual is to assist PSNP+ project staff and
implementing partner organizations conduct BST that enhance skill and competence of
target beneficiaries identify, plan, implement and manage IGAs effectively.

The specific objectives are

    To assist PSNP-Plus project and implementing partner staff homogeneously apply
     fundamental concepts and principle necessary for IGAs and BST promotion

    To acquaint TOT participant in theoretical principles of adult education

    To Assist PSNP-plus beneficiaries select an IGA that is suitable for their
     individual circumstances, after careful consideration of the technical,
     marketing and financial aspects of a number of alternative IGAs;

    To assist target beneficiaries successfully plan on the selected IGA

    To assist targeted beneficiaries implement and manage the IGA effectively
     and the risk is kept within manageable limits.

                          DEVELOPMENT METHODOLOGY

The curriculum developed based on practical field reality and critical review of the existing
CARE-SPM and CEFE for Illitreate training manual. The Finding of the two experts from the
consulting firm who conducted the field study at representative project implementation site
applying semi-structured interview methods with project staff, beneficiaries, MFIs and
other partner organization are used as a frame work for the curriculum development.

This manual has five modular sessions, which should be conducted in four-five consecutive
half days at community villages. For trainers they need to be trained for eight full days
including adult education for 1 day, Uncloaking competency for 2 days, Idea generation and
Selecting a suitable IGA 2 days Business plan development for 2 days and IGAS management
for 1 days. See annex for the course outline Annex 1: Standard course outline

                                 TRAINING METHODS

The training method is completely based on adult training methodology with the
experiential learning cycle (ELC) being the general framework for the design of each
session. Sessions in a typical ELC framework are structured in such a way that they
start with getting it from participants i.e. participants either verbally or by action
expressing their views followed by the result being published to be evaluated and
reflected upon by participants which is called a critical reflection stage or processing.
After each processing in a session, the moderator should bring generalization questions
to help the participants deduce a lesson for future improved action. This method is
conducted in learning by doing environment where each session involves participants
actively through structured learning exercises (SLE) so as to print the lessons in the long
memories of participants. The adage “what I hear I forget, what I see I remember, what I
do I understand” Confucius.

                         The experiential learning cycle (ELC)


                   Application                                         Publishing

                       Generalizing                                Processing

Handout slides on adult learning are annexed for the trainers to give attention to. Annex
7: Tips on adult education


The opening and related activities is the first entry point which combines a few activities
starting with registration. The following are a few of the basic things which need to be
addressed during the opening event: registration, attendance, participant introduction,

leveling of expectations, common rules to be signed by all participants, course briefing,

                             SESSION 0: REGISTRATION

Registration is a very important part of the opening activity to verify whether all selected
participants have appeared and avoid non-selected participants comes by mistake. The
registration should start 30 minutes before the start of the workshop; hence, person in
charge of the registration must be there 15 minutes before the start of the registration for

 The registration format would also serve as a basis for subsequent monitoring of the
attendance of the participants. See annex for attendance and registration formats Annex
3: Registration format, Annex 4: Attendance sheet. This responsibility could either be
taken care of by the program coordination office or the trainers themselves as agreed
during the organisation of the workshop. The attendance sheet should normally go
around amid normal activities and be collected by the responsible person quickly after
everyone has signed.

                          SESSION 1: WELCOME ADDRESS

An official welcome address has to be conducted by the training supervisor or lead
trainer. If there is a guest of honor who is invited to officially open the workshop, the
person who is in charge of the welcome address should honor the presence of the
official person by addressing him/her first. The welcome address should reflect the
purpose of the training and thank the participants for coming and wish them a success.
Finally, the person in charge invites the guest of honor to officially open the workshop
and leave the stage to him/her. The welcome address shouldn‟t take more than 10

                           SESSION 2: OFFICIAL OPENING

If there is an invited guest who has a connection with the implementation of the program,
she has to officially open the training. The invited guest should emphasize the
importance of the training for the achievement of the program and that the training could
only be successful with the active involvement of the participants. Finally, has to express
the dedication of the organization to make the program a success and declare that the
workshop is officially open. Maximum time for the official opening is 10 minutes.


The participants‟ introduction can take any form as the trainer finds it more practical and
lively. The trainer can chose a different way of introduction among participants based
on local cultures and norms.

                                 PAIR INTRODUCTION:

Time: 40 minutes

Objective: at the end of the session, participants will be able to easily recognize each

Instruction: (3 minutes for explaining instruction)

   1. Each participant pairs up in 2 minutes with a co-participant whom s/he doesn‟t
      know before.

   2. The pairs get to know each other in 5 minutes.

   3. Each pair will introduce each other in one minute (total 30 minutes for 26

                           SESSION 4: COURSE BRIEFING

Time: 30 minutes

Objective: at the end of the briefing, participants will be enabled to capture BST‟s overall
goal and the contribution of this training to the achievement of the goal as one activity.

During the briefing the level of commitment expected from participants and what they
have to prepare themselves for after the training should be extensively elaborated. The
input of the BST to realize the goal should also be explained so that the participants
should only demand what could be offered. Other inputs such as business finance
should be treated on separate interventions.

Following the briefing, a question and answer discussion should be conducted.


Time: 30 minutes


    1.    At the end of the session participants will have explain their expectations from
         the training in general.

    2. The moderator levels the expectations either as “to be fully addressed” or “to be
       partially addressed” or “not to be addressed” within the context of the training
       workshop at the end.

    3. The expectations will be used to evaluate the performance of the training at the
       end of the workshop.


    1.    The moderator asks for expectation on a plenary and writes them on the flip
         chart with grouping similar ideas together and giving them a common heading.
         Even though most mightn‟t be able to read, the chart helps as a reminder for the
         trainer and final check. Symbolize expectations to be understood by illiterates.
         When symbolization is difficult read loudly at least twice.

    2. Finally, the moderator displays the course outline on another pin board and uses
       it to level the expectations in front of the class as “to be fully addressed” or “to be
       partially addressed” or “not to be addressed”.

    3. The leveled expectations will be posted on the wall visually to be used later at the
       end of the training workshop for evaluating whether those expectations which
       were leveled as to be fully or partially fulfilled have been addressed.

                        SESSION 6: SET COMMON RULES

Time: 15 minutes

Objective: to maintain a peaceful and happy training time.


    1. The moderator announces to the participants to forward a common and
       agreeable administrative rules to be respected by all participants,

   2. The moderator put symbols the forwarded rules after confirming whether there
      isn‟t any objection and the rule doesn‟t hamper the learning environment, but
      rather facilitates.

   3. After having exhausted the ideas, the moderator asks the participants to come
      out and sign on any open space on the chart. Since signing is a symbol of
      commitment, illiterates can be asked to put their finger prints.

   Examples of common rules:

            Respect time

            Attend all the modules

            Respect the ideas of co-participants,

            Participate as much as possible,

            Think carefully about the learning from each session in the following day

            Prepare thoroughly for the next session according to the instruction given

            Start up or expanding an IGA that they have planned during the course.

                      SESSION 7: SYMBOLS AND NICK NAMES

Objectives: Identify participants and facilitators by nicknames and symbols, unfreezing.
Time: 20 minutes
Requirements: Different symbols (9 x 9 cm = 4 x 4 inch according to the breadth of a
ZOPP card; such as house, shoe, basket, lamp, candle, etc. which represent well-known
articles of their surrounding) lasted on the lower part of vertically used ZOPP cards
(number according to participants plus facilitators + 10), Set of 30 times all symbols (5 x
5 cm) neatly cut and piled per symbol,
“Name Chart” of participants (see nnex 9 : Name Chart),
Chart with all different symbols which are pasted with the help of small pieces of rolled
masking tape; Security pin for every participants.
Setting: Participants sitting in a semicircle.
(1) Tell the participants that for the time being nobody knows how the others are named
with the exception of those who knew each other before. Explain the necessity that
everybody chooses a nickname (preferably a short one!) which might be the real name
or any other name by which he/she would like to be called throughout the training
program. Give them some time for thinking and ask them one by one to tell their
nicknames (including the facilitators).

(2) Then show the chart with different symbols pasted on a quarter flip chart paper and
introduce them one by one (so that the participants can make up their mind which
symbol to choose!). Ask them to choose one symbol and come quickly forward to pick
their symbol (“first come – first serve”). Inform them that they should go back to their
place after having picked their symbol. All the facilitators will choose among those
symbols which remain on the chart.
(3) Ask them now turn by turn (following the sitting order) to introduce themselves by
nickname and symbol; let them explain why they have chosen the respective symbols
(“What is the reason why you picked that symbol”). During the individual presentation
phase, one co-facilitator writes down the name on the upper part of the vertical ZOPP
card (lower part covered by the symbol). Meanwhile, the second co-facilitator writes
down nicknames and sticks symbol on the prepared chart (see Annex 8). Then, the
participants will fix their personal ZOPP cards with the help of security pins to their
(4) Thank the participants for their participation, and lead over to the next session
(administrative details).
Note: the “Name Chart” (Annex 8) will be utilised throughout the training program in
order to note down special prizes during the exercises won by the participants. This
ongoing competition is meant to stimulate the participants‟ competitive spirit.
Caution: During the picking of the symbols, some small “accidents” might occur.
Some participants might be disappointed if their favored symbol has been picked by
somebody else.
Hints: Tolerate some disorder during the selection of the symbols because it contributes
to the unfreezing of the situation. Encourage participants whose favored symbol has
been picked to watch out for the second best among the remaining ones.
The additional columns on the name chart will be utilized during the training to note the
prizes won by the participants because the cleverest participant will receive special
award at the end of the training. The other symbols which are already prepared will be
utilized during the training program for all interventions of the participants which are
captured on ZOPP cards; the symbol helps to identify the author of the respective
The set of symbols should be placed next to the ZOPP boards throughout the training
Make sure that there is good co-ordination among the facilitators in announcing the
participants‟ names which belong to the selected symbols (writing the chart) and the
individual introduction providing the reason why the symbol has been selected. This can
best be achieved if the sitting order is respected and if you make sure that everybody
listens to the individual explanations.
The symbols should be clear in their meaning, if possible they are drawn by a
professional artist.
Variations: (1) the symbols may be displayed on the ground so that the participants are
closer by having a better view

Operating an IGA provides the opportunity to be self -employed using one's own skills and resources
and diversify income sources. IGAs generate increased income that allows families to enjoy better
food, clothes, shelter, medicine and status in the society. Unfortunately, many times the poor do not
have confidence in their capabilities and think that they cannot manage economic activities or other
initiatives that let them live better. This session is designed to change this perception.

Objective: At the end of this module participants will be able to comprehend what it
takes behaviorally to be successful in business and express willingness to behave

                            SESSION 1: JOHARI WINDOW

Time: 1.5 hours

Objectives: At the end of this session participants will be able to

    1.  Describe the four areas of the theoretical framework of interpersonal
       communication processes;
    2. Detect the importance of feedback for individual learning processes as well as
       improvement of customer service.


1. Draw a large square on the flip chart indicating the personality of one participant
   among the participant; (5 min.)
2. Ask several participants to show in the drawing how much they think they know
   already about that particular person. (the facilitator can help them draw a portion) 5
3. What are the reasons why the areas known of this person differ in size from one
   participant to another? (5 min.)
4. Does this person voluntarily provide all information regarding any given subject? (5
5. Display a four quadrant square and ask participants the following questions. Let the
   person debate on each of the questions and then explain the name of each
           a. Is there a personality area which the person knows by himself/ herself
               and again known by others? (15 min.) then tell them this area is an
               public or open area with further asking the person to give an example of
               a publicly known personality and why and when we need openness in

          b. Is there a personality area which the person knows of himself/herself and
              not known by others? (15 min.) then tell them this area is a secret area
              with further asking the person to give an example of a secret and why and
              when we need a secret in business.
          c. Is there a personality area which the person might not know of
              himself/herself, but known by others? (15 min.) then tell them this area is
              a blind area with further asking the person to give an example of a blind
              spot and how this damages a business. Elicit a discussion that a
              feedback could help in minimizing this spot.
          d. Is there a personality area which the person might not know of
              himself/herself and again not known by others? (15 min.) then tell them
              this area is a dark spot in our lives and that our potential for growth is in
              there. Continue with further asking the person to give an example of a
              dark spot and how this damages a business if they don‟t search for their
              potentials. Elicit a discussion that a feedback could help in minimizing this
              dark spot and expose our potential.
   6. Generalize with a further discussion on the possibility of improving our
      relationships with other people in business to attract more customers and avoid
      competitors. (15 minutes)

Explanatory note to the trainer:

Public Area: This is the area which is known to oneself and to others. This window of your
life is also called the open area. The behaviour revealed in this area is behaviour about
which one is not defensive and about which the individual himself and others around him
are familiar with or know about.

Secret Area: This is the area which one knows about oneself but which others are not
aware of. This window is also known as the hidden area. This is the area where one keeps
secrets about oneself. Secrets are kept for fear of others' reaction to them. Secrets may
pertain to feelings, attitudes and behaviour.

Blind Area: This is the area in oneself about which others are aware but about which the
individual himself is not aware. This area remains blind to the individual because the others
who are aware of this area may abstain from telling the individual for fear of offending him.
This window is also called your bad breath area.

Dark Area: This is the area about which neither the individual nor others around him are
aware of, but in this area exist many undiscovered or unknown potentialities and aptitudes.
Others would like to call this area "the future", the undiscovered area.

Johari Window Framework:

                           Known by me    Unknown by me

                            Public Area    Blind Area
   Known by others

   Unknown by others        Secret Area    Dark Area

                       SESSION 2: TO BE OR NOT TO BE

Time: 1.20 hours

Objective: At the end of this session, the participants will be able to

   1. Analyse their own problem solving behaviour
   2. Compare individual and group strategies
   3. Describe the elements of productive problem solution.


        1. Introduce the exercise as an opportunity to practice entrepreneurial qualities.

        2. explication of the task, rules and conditions for survival (=obtaining a lollipop),

        3. Distribute the sweets as follows: every participant gets 2 sweets of one single
           colour. 1/3 of the group receives sweets of colour a, 1/3 of colour b, and 1/3
           of colour c.

        4. Within the given time, the participants try to get 3 sweets of different colour
           each they need to obtain a lollipop. During this same time one assistant acts
           as ”Mother‟s Shop” and changes sweets for lollipops and vice versa while the
           lead trainer observes action and behaviour of participants (10 minutes)
        5. Ask for those who survived i.e. who managed to have lollipops.

        6. Ask the following processing question,

               a. How did you interpret the task?
               b. On what basis did you develop your strategy?
               c. For what reasons could the problem be resolved or not be resolved?
        7. Form 2 competing groups among the women for second round game,
        8. Observes groups and listens to their discussion as they develop survival
           strategies; (10 minutes)
        9. Tell them to execute i.e. strive for survival or possess as many lollies as
           possible to ensure that all their group members survive (10 minutes)

        10. Publish results; how many survived from each group;

        11. Award the group with the higher number of survivals;

        12. Ask the following processing questions:

               a.   How did the winning group develop the strategy?
               b.   What were the reasons for success?
               c.   What made the losing group different?
               d.   For what reasons did they fail?

       e. What would you have done in a third round?
13. Generalize with the following discussion;

       a. What does an entrepreneur need to resolve problems without wasting
          time and resources?

14. Display the following problem solving cycle and finish.

Problem Solving Cycle

Note: Use pictures for explaining each step to the women

                                          Contact with

   Success          Failure

   Evaluation                                                           Clear understanding
                                                                            of problem


     Action                                                                  Definition of

                    Allocation of                          Elaboration of
                     resources                               strategies

Note to the facilitator:

    A. Display the following instruction on a flip chart with using symbols and reading
       aloud once or twice only. Don‟t explain apart from reading.

Instruction chart ”To be or not to be”

Objective: Achieve the survival of the whole group.

The Facilitators read out the rules and explain the pictures for the participants.


    1. Every participant has to change at the ”Mother‟s shop” 3 sweets of different
       colour each for 1 lollipop. This lollipop represents his personal survival. Together
       with the lollipop he gets an additional sweet of any colour he chooses.

    2. Every participant can change 3 lollipops for 7 sweets of any colour he wants.

    B. The following will have to be prepared ahead of time.

Didactic aids to prepare       instruction chart (See above)
                               a sign for the table with ”Mother‟s shop” written on it
                               optional: a second sign with ”Father‟s Shop” written on it
                               chart: problem solving cycle (see above), also to be
                                distributed as hand-out
Materials for the trainers     sweets of 3 different colours easy to be distinguished (for a
(during the exercise)           group of 24 persons, you need 16 sweets of colour a, 16
                                sweets of colour b, and 16 sweets of colour c
                               1 lollipop per participant plus some additional lollipops and
                                sweets lying down on a table with the ”Mather‟s Shop” chart
                                fixed in front
                               optional: 2 tables for the second round with lollipops and
                                sweets on them (the second chart should say ”Father‟s
Materials for the             2 sweets of one single colour for each participant (sweets of 3
participants (during the      different colours are distributed among the participants)

                      SESSION 3: STRENGTH DETECTOR

Time: 1.5 hours

Objectives: At the end of this session the participants will be able to

   1. Identify one‟s own competencies and strengths;

   2. Understand the need to exploit one‟s own strengths in setting up any business.


   1. Introduce to the subject by mentioning the need to identify one‟s own strengths
      and competencies which will be helpful in setting up a business.

   2. Ask them if they are able to cite some competencies and strengths as they see
      pictures related to them. Point to the competencies written or displayed on the
      chart and ask them to raise their hands if they believe they possess them.

   3.    Write their contributions (including the participants‟ respective symbols) on a flip

   4. Lead a brief discussion on competencies and strengths in relation to business
      (Elicit that a lack of competencies for any business can create severe problems
      to the extent that always outside assistance would be required).

   5. Explain that both competencies and financial resources are required by

Note to the Facilitator:

Display the following competency areas to help the participants detect theirs by

Competencies                                    Symbols

Money in bank



Reading / writing


Other languages than mother tongue



Playing instruments


Rearing animals


Basket weaving

Net making


Group leading

Information seeking

Rickshaw pulling


Shoe repairing


Shoe shining

Hair cutting

Pond fishing

Bee keeping

Wood working

Mat making

Animal fattening

Others: participants are asked if they can imagine any other competencies/strengths
than those displayed in the table above.


Time: 2.50 hours


   1. Identify the application of key entrepreneurial characteristics in an
      entrepreneurial set up,

   2. Practice personal entrepreneurial characteristics (PECs) with focus on demand
      for quality and efficiency, information seeking, and commitment to work contract
      as well as planning (goal setting, systematic planning and monitoring).


   1. 10‟ Introduction: Introduce the exercise as an opportunity for the participants to
      practice their entrepreneurial skills/characteristics.
        Announce that you will only entertain questions, which shall clarify the general
        instruction (See below). Any other information, which they would like to know
        apart from those given in plenary will have to be sought by them from the
        facilitators on a group basis.
   2. 10‟ General Instructions: Read out and explain the general instructions (See
      below) while visualizing the sample necklace via pinning on soft board.
   3. 5‟ Grouping: group the participants using an energizer, and distribute one sample
      necklace for each group.
   4. 25‟ Trail production: Ask the participants to collect one container and all the
      necessary materials for the trail production. During the trail production phase, the
      facilitators let the participants take control of their own time and activities.
      Facilitators are, however, available in case the participants ask for the right
      information. Be sure to reinforce only the right information seeking behaviors. In
      other words, do not volunteer information when the question posed did not call
      for it.
   5. 10‟ Making Commitment: After the trail phase and before commencing the real
      production, the participants will have to make their commitments to the buyers
      (later change not possible like in a sub contracting business). This should be
      done verbally and will be recorded by the facilitators who takes care of the
      performance chart (see below)
   6. 10‟ Raw material collection: the participants will collect the required number of
      raw materials (pearls and cotton threads) according to their commitment. Take
      into account the one which has already been collected for the trial production.
   7. 30‟ Production Give the starting signal only when all participants are ready. Make
      sure that all groups are starting from zero production (collect all necklaces
      produced at the trail phase). The production phase goes on without disturbance,
      with the lead facilitator taking personal notes of important observations being
      important for the processing.

8. 15‟ Selling products: Once the production phase is over, the participants sell their
   products to the designated buyers (co- facilitators). Make sure that the reasons
   for rejection of the products are made known to the participants (quality).
9. 10‟ Publishing: Results are recorded on the performance sheet (annex 2), and
   made clearly visible to the whole group.
   Explain in detail all results obtained with the help of the chart so that the
   participants will understand its use.
   Highlight exceptional performances (positive and negative ones) and link them to
   the performances by questioning the respective participants.
10. 30‟ Processing: Process the experience of the participants by asking key
    questions such as:
       a. How do you feel after this exercise (happy, frustrated, angry, not sure
          about oneself, insecure, etc.)?
       b. How do you feel about your individual performance?
       c. Why were some groups able to meet their commitments, whilst others
          were not?(Elicit that the successful ones have done active information-
          and opportunity seeking by asking for better threads, needles, ruler, etc.,
          i.e., they displayed certain entrepreneurial qualities; if valid!)
Possible processing strategies:
   -   Review participants with a lot of first quality sales. Link purchase of needles
       and nylon threads to good performance (higher quality),
   -   Review those cases where commitments were higher than actual
       performances (Why were they not able to achieve their goals? Missing skills,
       bad quality, planning mistakes, etc.),
   -   Review the participants with rejected necklaces. Reasons? (see above).
   -   Review cases with high fixed costs (needles, nylon threads, information paid
       for, etc.). Did it pay off or was there a way to avert all these overhead costs?
   -   Review exceptional cases such as bulk purchases of needles or nylon
       threads for further selling, grouping of producers (cooperatives), middlemen
       business, selling of one‟s labour, subcontracting, etc. How did they perform in
       terms of total income achieved? Reasons? Did it pay off? Side-businesses or
       sub-contracting might be more profitable than the actual production.
11. Which entrepreneurial qualities could be practiced? What were their contributions
    towards success? Elicit specific examples from the exercise and ask the
    participants which PEC was manifested in each case. ( add pictures on PEC or

           PEC                         Situation                      Symbol

    • information      - about nylon thread or needle,
                       - about buyers‟ process of quality

    • opportunity      - buying a needle or a nylon
       seeking            thread after having heard
                          about their existence on the
                       - going outside the training hall where
                          the lighting conditions are better
                          may be better, etc.
      • persistence    • in convincing the buyer (optional)

    • demand for       - the total number of necklaces
     quality and          committed has been sold be
     efficiency           cause the quality instructions
                          have been followed
                       - all necklaces have been accepted as
                          first quality
    • goal setting     commitments
    • systematic       - arranging the pearls on the
       planning           working surface
                       - copying the sample, numbering of
                       - Division of labour among group
                       - production time was clocked

12. 15‟ Generalizing: Ask the following questions:
   a) How the detected PECs (see above) displayed in real life business?
       (Elicit that information seeking is a permanent task which refers to all strata of
       business life: the same is valid for opportunity seeking. Let them search for business
       opportunities in their environment like for example this training programme, the
       construction of new houses in the area (= customers), government support for certain
       sectors, a husband who allows traveling to his wife, the closing of certain shops, new
       fashions, etc.)
   b) After having cited their own business ideas.
   c) How does the quality issue interfere in real business life?
       (Elicit that similar products with the same price but different qualities make a big
       difference for the customers, usually there are only poor quality products in third

            world countries because the price element is dominating in purchasing. Bad quality is
            for mass production and low income groups whereas good quality is addressed to
            middle and high income groups. But quality also refers to cleanliness in restaurants
            or shops which are not at all costly but attractive to the customer.)
       d) How is goal setting practiced in real business?
            (Elicit that some targets need to be set in order to comply with planned figures and to
            measure one‟s progress. This is to say that, „If I don‟t know where I want to go to (the
            goal) I can never be sure if I‟m on the right track! ‟)
       e) How can systematic planning and monitoring look like in real business?
            (Elicit that the setting of goals requires a planning process which describes the
            method and the tools to be used. Monitoring helps to check permanently if I am still
            on the right track. Let them cite planning tools such as calendars, meeting and
            observation notes, record books, accounting, etc.)
       f)   How could they do systematic planning and monitoring without being not able
            to read and write properly?
            (Elicit that planning does not necessarily require writing; if things are properly
            discussed in the family (social planning for agricultural issues, marriages, etc.) or in
            business (best time for purchase, best way of production, best time sales, etc.) the
            results- the planning stages- can be memorized. Dates for the accomplishment of
            certain steps can be fixed.)

   Note for the facilitator:

   A. Prepare the following items ahead of time.

For each                       -   Scissors,(at least some to serve a group of participants)
                               -   Plastic bags ( or cups or any other container) for each
                               -   Cotton thread (long enough that it can be used singly for
                                   the production of necklaces but too short to be doubled.
                               -   Pearls of two or three sizes ( make sure that the pearls
                                   holes are not too big so that threading becomes too easy
                                   and there will be no need to seek for needles)

Hidden somewhere         Needles, rulers, better quality thread (eg: if it is possible nylon
inside the               thread which is good for the threading pearls).
classroom or with
assistants/ co-
   B. General Instruction for participants

               Explain that the buyers(facilitators) will only buy the necklaces if they
                correspond to the norms (

            Visualize the sample necklace, and also give one sample for every group
            Explain that poor quality will be rejected; while good quality according to
             the set standard will be accepted.
            Second quality might be bought at selling price (fix selling and buying
             prices prior to the session in accordance with the financial abilities of
             participants and the real market prices for pearls, needles and threads)
            Explain the Specifications: Tied and cut neatly
                                       : Durable
                                         One/ two colour (s) per necklace
                                         Pearls in graduated sizes

  C. Necklace production performance Chart

  The groups‟ identity could be symbolized instead of writing names or do both. The
  remaining headings should also be symbolized for clear understanding.

Group   Symbol Commitment Other             Total    1st        2nd         Other Total    Total
Name                      costs             costs    Quality    Quality           sales    Income
                                                     sales      sales

                   MODULE 4: SELECTING IGA

Anyone who intends to start up an IGA should, first of all, list all the IGAs that
might be suitable. Then s/he should think about the five important points for each
of the IGAs under consideration before making a decision. An IGA should be
started up only after careful analysis.

EXPLANATION FOR                   THE      FACILITATOR:             The      Five
important points
There are various ways for the poor to survive, but not all ways are sustainable.
Some ways, such as undertaking IGAs, make them independent and in control
of their lives. But other ways, such as taking help from relatives or neighbors, or
expecting handouts from government, make them vulnerable.

Operating an IGA provides the opportunity to be self -employed using one's own
skills and resources and diversify income sources. IGAs generate increased
income that allows families to enjoy better food, clothes, shelter, medicine and
status in the society.

Unfortunately, many times the poor do not have confidence in their capabilities
and think that they cannot manage economic activities or other initiatives that let
them live better. The first part of the session is designed to change this

There are FIVE IMPORTANT POINTS, which should be considered before start-
up of an IGA. The participants can add on the five. These are:


                           Do I have the skills and knowledge needed to operate
                           this activity?

                           Do I have the time to operate the activity and do I
                           know the seasons?

    MARKET:               Can I sell the products of this IGA? Will people buy
                           the products I want to sell?

    INCOME:               Is the IGA profitable?

    CAPITAL:              Do I have enough money to start-up and operate the

                          How much money do I need to start & operate the

    FAMILY EXPENSES: Will the income from the IGA, when added to
                    other family income, be enough to pay /meet
                    household expenses?

Anyone who intends to start up an IGA should, first of all, list all the IGAs that
might be suitable. Then s/he should think about these five important points for
each of the IGAs under consideration before making a decision.

Poor people often do not assess all these points before deciding which IGA to
undertake. They select IGAs that they observe other people doing or that they
think might have a good profit.

This Session is designed to make participants aware that an IGA should be
started up only after careful analysis. Each point is covered in more detail in
Session 2.

Thus, the five important points form the prime content of the training on IGA
identification and selection. The trainer's greatest priority is to ensure that the
participants have registered the importance of these points. To facilitate this
learning, the trainer should enumerate these five points using the five fingers of
the hand. During each subsequent session, this technique should be used to
reinforce the learning.


Objectives :        1. Identify appropriate project ideas for perusal;

Use                 : Matching of person and project; Project identification.

Time                : 45 min.

Steps : (1) Ask the participants how many different income generating
activities they have performed in the last say three years. Let some of them
cite their examples.

(2) Explain that during this seminar, they are supposed to learn how to better
plan a new or an existing income generating activity (business) by undergoing
various steps. Unfortunately, this process cannot be undertaken for several of
their economic activities so a certain choice needs to be made. Ask them to
reflect thoroughly on all their income generating activities and identify those
three they think are the most promising ones. Allow them to talk to any of the
co participants during 10 minutes (if desired) in order to retain those three

3) In a further step, they are asked to identify now that income generating
activity which they think is the absolutely best among those three by taking the
following criteria into account display the respective symbols (see following
exercise on _Micro Screening_):

•      Are my own competencies (see _strengths detector) sufficient?

•      Can I finance it to a large extent with my own equity?

•        Will people buy my product / service (i.e. is it needed and can people
afford it)?

The participants may again – during 15 minutes – discuss with their neighbors
or with any person they like in the training hall. The facilitators will visit all
participants and give advice without urging them to choose any specific project

(4) Inform them that this internal pre-screening of project ideas has been
necessary in order to start a more comprehensive screening process by taking
one more criterion (competitors) and a certain assessment scheme into

Caution: The task might be too abstract for some participants. Those
participants without any prior experience in income generating activities don‟t
know what to do.

Participants hesitate to share their knowledge regarding their own experiences
with their co-participants.

Hints: Ask some participants to share in public how they scrutinize their
income generating activities (IGA) in order to identify the three most promising

Participants without any business experience are asked to imagine possible
and promising businesses while taking the above mentioned criteria into

If they don‟t want to share their ideas with others, don‟t panic! They may do
so unless and until they share later on (next session) their prime choice
with others.

During step 3 you may ask the participants to group according to the most
favored projects which provides two advantages: more intensive exchange
about pros and cons of the mostly favored project as well as formation of
groups for the discussion of second best and third best option. Pay
attention that the groups are somewhat equal in numbers to allow for more
concrete discussions.

Processing: Inquire in how far they found this step difficult (easy)? What
was the deciding issue while opting for this or for that IGA? Write their
answers on a flipchart pinned on Kraft paper (add their respective
symbols). Reinforce the message of acquired competencies, sound
financial basis or solvent demand, i.e. the three criteria solicited.

Tell them that the IGAs which were not selected might come back into the
picture if it is found after the following exercise that they are more
promising than the pre-selected ones.

Thank them for their mutual help (in case it took place!) and felicitate them
for the brain work that has been accomplished. Tell them that this was a
very important step towards their business future. If they can nicely learn
the process of planning one business, they are supposed to be able to do
it for others project ideas as well.


Picture association is one of oldest idea generation method. The participants
are given picture and asked what the person in the picture misses. The choice
of the pictures (drawings or photographs) should be adapted to the situation of
the respective target group. For example, in a training programme aiming at
women in rural areas pictures depicting their specific situation will trigger a lot
of potential project ideas rooted in their specific environment, hence projects
which are potentially more feasible compared to those

As far as all brainstorming exercises are concerned, it is essential to recall the
basic rules of brainstorming: no criticising or censoring of ideas, wild and
turbulent sessions allowing the uninterrupted flow of ideas, no interruption by
the trainer once the basic idea of the exercise has been introduced, no
shyness and no limitations.

Objective: Participants
    generate as many project ideas as possible;
    Experience the creativity of the group.

Time: 45 min


    Divide the participants in to groups of five people and each group
       having at least one person able to write.
    The pictures are pinned on the soft boards or placed on the tables.
    The project ideas are written on flip chart
Basic rules and regulations:
    Write as many project ideas as possible (competition!)
    brand names are not allowed
    no repetitions of project ideas
    20‟ for execution of exercise
    Announce the exercise as a competition (Which group can generate
     the highest number of project ideas?)
Trigger question: What is the person on the picture missing?
Didactic aids to prepare

    sheets of kraft paper (or flip chart paper) according to the number of
    different pictures (drawings, cut-outs from magazines or photographs)
     according to the number of group

Processing: Count Number of project ideas generated and award for the
winning group.
Key questions:

 How did you like this exercise? Specifically what?
 Did you ever imagine generating so many ideas?
Hints: The motives for the pictures are very important for the kind of project
ideas you want to trigger. The basic rule is: less there are details on the
picture, the greater the creativity of the participants imagining those items
subjectively felt missing. In the case of this exercise, it is advisable to take
pictures (drawings, cuts from magazines or photographs) showing persons
without many decorative items in the background. These persons could be
babies, young or older people (of both sexes), or any specific set of people
(such as workers, fishermen, businessmen, etc. according to the fields of
businesses anticipated in the participants. Others say, just the opposite (i.e.
more details on the pictures) is more relevant as it might even trigger more
uncommon project ideas. Test yourself which kind of pictures will yield the
best results!

Sometimes, individual members of groups try to pick ideas from their
competitors. This habit can best be handled by emphasising the limited time at
their disposal. Put them in a real competitive mood by announcing every 2
minutes the time left until the end of the brainstorming part.

You might extend the time for another 5 minutes if less idea generated by
some group; announce this extension just 2 minutes before the normal end of
the 20 minutes brainstorming period.

                  SESSION 3: MICRO SCREENING

The micro screening will become a very lengthy procedure unless you urge
them to further scale down to 3 or 5 projects by taking into account the five
important points listed at the beginning of the module. For this pre-step you
will rely totally on the participants‟ own judgement without any sophisticated
scoring method as applied later.

The number of parameters selected for the ”micro screening” depends largely
on the participants‟ intellectual level, their previous exposure to the economic
world and the complexity of their respective situation. If applied with existing
entrepreneurs who desire an extension or a diversification of their existing
businesses, they are likely to respond much more critically to these
parameters as compared to a younger rural target group (newcomers) with
”simple” project ideas based on agriculture and their respective limited

There are virtually no limits in maximising this exercise through the
introduction of additional screening parameters and/or the application of a
larger scale compared to that one suggested for the conduct of the basic
exercise (scale 0 to 5) in this manual. You may even suggest weighed scores
depending on your intimate knowledge of the respective economic situation in
a given region. In brief: feel free to adapt the parameters and the scoring
method according to the requirements felt by the group of facilitators.

 select between one and three project ideas which seem feasible and
  profitable from their individual point of view while applying the suggested
  micro screening parameters
 Apply their knowledge of various environmental factors in accordance to
   their project ideas.
Steps : (1) We have done an inventory of our competencies, and we know
already our key personal entrepreneurial characteristics. The participants were
able to include own business ideas even if they have not been presented on
the list elaborated by transforming perceived problems into solutions. Now it is
time to screen those three project ideas in order to pre-check their feasibility.
(2) Invite them to identify criteria for the further selection process which
should bring us to only one project idea. Note their proposals on ZOPP
cards (including their symbols). Probe into the different arguments which
back up their respective conviction. If required, guide them into the direc-
tion of the four criteria used in the micro screening process. Laud their
efforts, particularly when the results correspond to the expected outcome.
Distribute the prepared micro screen formats on flip chart paper and ask
them to write theirs respective symbol on top.

Then, suggest to take two examples from their pre-selected businesses tell
them that you will now check criterion after criterion in order to make the
screening process crystal clear. Note down both business examples into
the left column and explain the rating process.

 The rating takes place on a scale of 0 to 5; _0_ indicates the non
availability of demand (i.e. no demand at all) whereas _5_ stands for an
availability at all times without any exception (extremely high demand
throughout the year without seasonal and other fluctuations). Make clear
that the extremes _0_ and _5_ should only occur in rare cases as they are
really exceptions. Usually, the rating is in between _1_ and _4_. Use small
cards or locally available stone to give the rating in each score place so
that counting will be easier for the participants.
(3) Invite them with these explanations to proceed to the first criterion
(solvent demand). Let them explain what solvent demand really means to
them. Rectify if required and then proceed to the rating including an
intense discussion regarding the pros and cons for different ratings.

Demand (symbol: some people): clarify that the market determines
success or failure of any project idea – if there is no buyer (or not a
sufficient number of buyers) there will be no sales; explain that there is a
difference between a need (which might not be satisfied due to lack of
financial resources) and a solvent demand. Example: everybody would like
to have a car but there are only a few people who can afford to buy one.
(4) After this criterion seems to be properly understood, invite them to rate
it for their three project ideas. Those who can‟t write a few letters are
asked to use symbols for their different project ideas. The co-facilitators
move around in the training hall and check the individual ratings; they
counsel if required.

(5) The following criteria are treated in the same manner: general
introduction with their understanding of the respective criterion and joint
rating of both examples on the ZOPP board before they proceed to an
individual rating of their project ideas.

      Availability of raw materials (symbol: puzzle): reiterate that any
       entrepreneurial process need an inflow of raw material which is
       either transformed into another product (production) or utilised in
       the provision of services or simply sold at a higher price (trading).
       If all the raw material required is readily available throughout the
       year, then rate high, but if there are shortcomings or seasonal
       fluctuations then the ratings is respectively lower

      Availability of personal skills (symbol: two hands): assess yourself
       in how far you possess the required skill manually; if not, then an
       employee (additional costs = reduction of profit!) would be needed
       as a helper. If the required skill can be masterly performed, there
       should be a high rating, if it is low or non existing, then rate low.
        Availability of financial resources (symbol: man with bank notes):
          For every business some seed money is required to purchase the
          required raw material or other inputs. Instruct them to utilise _5_ if
          they think they own all the money required (equity) to start the
          process and to mark _0_ if they don‟t avail of anything in cash (or
          as savings).
At the end of this process ask them to add up all the rating per project idea
and write the totals into the respective column.
(6) Let all the participants explain their project selection to the others by
coming to the ZOPP board to defend their ratings; encourage the other
participants to ask questions and to critique the arguments. Make sure that
this is understood as a positive feedback with the objective to learn and not
as critiquing for the sake of critiquing only.

Processing: How do you feel about having tested your intended projects
against some important success indicators? (Let them not have the
impression that these criteria provide already an ultimate answer to all their
questions but just a more concrete idea about market chances. There is
still much more to learn about market mechanisms during the next days,
hence the products identified serve just as a possible entry point)

Explain to them that the Micro Screening has brought the “Product Idea
Generation“ process to an end, and that the next step consists of
understanding more in detail how the market actually functions. The market is
the general expression for the place where their products are sold. There are
some “basic laws“ and „mechanisms” which govern interactions at the market;
and these need to be identified before any further decisions on going into
business can be made. Remind them that it‟s finally the market (solvent
demand) which determines success or failure of a project so that this issue
needs more considerations in detail. Their assessment of the solvent demand
has just expressed their personal assessment without having valuable details
and hard figures (interviews, opinions, statistics, etc.)

                                                               MICRO SCREENING TABLE

          PROJECT                 Solvent      Availability Availability Availability                        Competitor      Corrected   Critical success
                                                 of raw     of Financial   of Skill                              s                            factors
      good or service             demand        material     resource                           TOTAL                         TOTAL

                                                                                                 (=)             (-)               (=)

                                    (+)                            (+)            (+)

Scoring system: 5 – extremely high ; 4 –high ; 3 – average ; 2 – fair; 1 – poor; 0 – absent Critical success factors: write text


This is to assess all external factors that can affect the selected IGA

Explanation for the facilitator

Participants should come to this session with the names of several IGAs that they have
identified as being potentially suitable for them. Ask participants individually to mention
the IGA(s) they have identified. This session explores the various factors that they should
consider before making a final decision about which IGA to undertake. Ask participants
if they considered the five points before deciding on the IGA(s).

The trainer should make sure that all participants understand that a decision should be
reached only after careful consideration of all-important aspects. Participants should be
encouraged to think critically about the IGAs that they've identified, and to feel free to
add some new options if they choose.

Time: 1.5 hours

Objective: At the end of this session, participants will be able to,

 1. Identify key environmental factors influencing their businesses,
 2. Determine the respective importance of the existing relationships with
    these factors (organizations, institutions, persons, etc.),
 3. Decide upon future steps to                 improve     relationship     with   these
    environmentally important factors

    1. As an introduction, ask the participants to identify environmental
          factors (institutions, organizations, persons, etc), which have a
          certain influence on their respective businesses. As the participants
          forward their opinions, the co-facilitator will post symbols of these
          factors on the board or wall. If there is no pre-prepared symbol for
          a certain factor, the facilitators in collaboration with the participants
          can come up with a certain symbol at the spot.
         In the absence of co-facilitator, the facilitator can write the points on
         meta plan (ZOPP) cards on a plenary as the ideas are forwarded from
         each group to be reviewed later by her.
    2.      5’: Group the participants using a certain energizer, and assign one
            board for each group. Then, each co-facilitator takes care of one or
            two groups on a rotating basis.
    3.      15’: Then introduce the concept of „Ambasha diagramming‟ via
            drawing a circle in the centre of a flip chart, which stands for an
            individual‟s business (MY SELF), and all the other influential
            environmental factors around it. For the purpose of this exercise,
            select one business type which makes most sense to that
            particular group. It is now their task to position the Meta plan
            (ZOPP) cards with the symbols of the environmental factors along
            one criterion: importance for their businesses. The closer the
            respective ZOPP card is to the centre circle (MY SELF), the more
            important it is for the participants. Less importance to the business
            women is indicated by a greater distance to the centre circle.
        -   The facilitator can also use three different colors of zopp cards for
            the three categories; for example, a high importance can be
            indicated by green zopp cards, an average one by yellow and less
            importance by Red zopp cards within the class rooms.
   4.       20’: The next step consists in discussing their existing
            relationships to the different environmental factors. In this, strong
            relationships with the various factors will be symbolized by thick or
            double line, an average relationship by thin or single line, and no
            relationship by nothing.
        -   For this exercise, the facilitator can also draw the picture indicated
            on the chart below with modification to account for the specific
            feelings of that particular group
   5.       Ask the three groups to present their findings. Encourage the other
            participants to question the presentations. Make sure that clients,
            suppliers and competitors are mentioned as very important
            factors by each group.
   6.       Proceed to the processing (see below).
            a. Inquire into the mood of the participants by asking them how
               they feel after this exercise. Let them spell out freely all their
               different feelings. If you feel like their feelings are too positive,
               encourage them to give room to negative feelings as well (and
               vice versa!).
            b. Ask them how they think these environmental factors can
               influence their businesses. Particularly, inquire into the different
               arguments supporting their ideas.
               (Summarize that there will be positive and negative influences, which
               will have to be, assessed differently in different cases and/or
               situations. Mention that it will be their specific task to identify the
               respective forces (negative – positive) as soon as they have finally
               identified their project ideas.)
            c. If these forces are identified, and if they turn out to be
               potentially negative, what needs to be done in order not to
               destroy business?
               (Elicit that networking (close contacts to important people and
               organizations) need to be maintained particularly when there has
               been no contact at all.)
            d. How would they classify their clients in terms of importance
               compared to other factors?
            e. How can one learn more about his/her clients?
               (Elicit that they have to contact them, talk to them, inquire about their
               habits, likes and wishes before claiming to know them better. Elicit
               that clients (solvent demand) is the most important factor without
               which no business can survive.)

            f.   What about the other factors?
                      Suppliers: if there is a break-down of supply the business
                       will die
                      Competitors: if they become stronger, the business‟s
                       position will weaken
                      The family and its support is part of the basic question if
                       one should go at all into business (if one cannot be sure
                       of their support, or at least they tolerate his/her business,
                       he/she will not be able to survive!).
                 (Elicit that suppliers‟ policies and behaviors as well as the
                 competitors‟ practices need to be researched in order to better launch
                 one‟s own business (marketing strategy). By doing so, they will have
                 the advantage of being able to study them carefully, while the
                 competitors are not aware that they will be entering the market.
                 Remind them also that any information is valuable (refer to the
                 necklace production exercise; information about needles and nylon
                 threads). Let‟s not hesitate even to spend some money in order to get
                 these information (transport costs, buy a competitor‟s product for
                 scrutiny, etc.)
            g. Let them find examples for their own businesses in terms of
               information required. If they consider the lack of networking a
               weakness, what can they do about it?
                 Elicit that they will have to find ways and means to eradicate this
                 weakness (force oneself to do certain visits, send others, contact well-
                 known people first who are near to the important ones, etc.) by
                 different strategies.
            h. If an environmental factor has been considered to be a threat to
               the business what can be done about it?
(Elicit that all measures need to be taken to anticipate its impact and try to circumvent
it (example: the threat of not getting a loan might be circumvented by catering for
personal loans or by downsizing the business to a manageable size within the
possibilities of the

    A. Note to the facilitator:

    The following will have to be prepared beforehand.

                                 Lead facilitator, co-facilitators;
                                 4 pin boards or other types of boards or wall

                                 Flip chart,

                                 Drawing/symbols of environmental factors
                                  important to small business posted on Meta plan
                                  cards. (ex: financial institutions can be
                                  symbolized by local currency notes, government
                                  by flags, etc.)

                                 Markers

                      With the help of an energizer, participants are
                       seated in four groups
                      Working groups organized along similar
                       businesses; every group sits facing a pin board or
                       a wall

B. Ambasha Diagram of environmental influence


             Family                                         Tax


                           MY SELF

  Supplier                                                   Micro
  B                                      Supplier A          finance

                    SESSION 5: TOWER BUILDING

Time: 1.5 hrs

Objectives: At the end of this session, the participants will be able to,

1. Discuss the interdependence of business and society/culture and their
   effects on the entrepreneur.
2. Examine own behavior as reaction to failures, self-control under pressure
   situations, self-confidence and persistence.

3. Change their own behavior to a more efficient one in a pressure context.

4. Analyse the personal behavior related to risk calculation, goal definition,
   pointing out an entrepreneur‟s conception that assumes moderate and
   calculated risks.


   1. The trainer motivates the participants and introduces as an opportunity
      to practise entrepreneurial qualities.
   2. Selection of 2 participants who will act as entrepreneurs
   3. The selected participants leave the training room with the assistant,
      being informed that they will come back to execute a task. They will
      have to wait 20 minutes until the trainer calls them back (Annex 1A).

   4. Explanation of task rule (Explanation of Entrepreneurs‟ role by using
       prepared note)
   5. Selection of 3 volunteers
   6. The group gets to know the characters
   7. 1st entrepreneur establishes her goal.
   8. Tower building by the 1st entrepreneur using her/his less skilled hand
       and with blindfolded eyes.
   9. Verification of results
   10. 2nd entrepreneur establishes her second goal.
   11. Tower building by the 2nd entrepreneur under external pressure (3
       participants perform secondary characters)
   12. Verification of results
   13. Processing
           a. How did you like the exercise? (Ask the spectator participants
               how they liked/disliked the game) Why?

           b. How did you perceive the situation in which you were put?
              (Inquire from the role players, starting with the entrepreneur-

           c. Was the role play realistic, i.e., could it really happen in the
              social context it was played? If not, what would be different?

           d. How should an entrepreneur behave in such a situation? Are
                  there any rules to be given? What are her options to act?

             e. Could/should she reach a certain degree of independence from
                these influences? If yes, how could this be attained?

             f. Discussion about the differences between the entrepreneurs‟
                behaviours regarding goal establishment and risk calculation.
             g. Analyses of external pressure interference especially the
                influence of the relatives in the accomplishment of the
                entrepreneurs‟ goals.
      14. Generalizing
             a. What can be learnt from this exercise?
             b. What can be improved in your entrepreneurial behaviour?
Note to the facilitator:

 A.      Requirements

Trainers/assistants             1 trainer and 1 or 2 assistant/s (to brief the role players)
Didactic aids to prepare         Meta plan cards or chart with instructions (see below)
                                 chart with table of results (see below)
                                 marker pens and sheets of blank paper
Materials for the                25 to 30 wooden cubes (or small and regulars matchboxes if
participants (during the          cubes are not available) for each entrepreneur (if they play at
exercise)                         the same time)
                                 1 or 2 pieces of dark cloth to blindfold the players
                                 copies of briefing notes containing suggestions on role
                                  performances to be explained by co-facilitator outside of a
                                  classroom (See below 1A, 1B, 1C, 1D )

Briefing notes

      1. For the entrepreneur’s role performance

The facilitators carefully briefs the instruction repeatedly to the role player.
Your task is to build a vertical tower of wooden cubes/matchboxes. The
tower‟s base is made by one single cube/box. This tower symbolises the
company you are creating. You need a capital investment of 10 cubes/boxes.
You count on your own capital of 3 cubes/boxes. A friend of yours, who is very
interested in the project, borrows you 2 cubes/boxes. The remaining 5 are to
be obtained through a bank loan. Only starting from 12 cubes/boxes the
company begins to profit.

You have 10 minutes to finish the task.

   2.   For the banker’s role performance

The facilitators carefully brief the instruction repeatedly to the role player using
the instruction. You lent 5 cubes/boxes to the entrepreneur for the
accomplishment of her project. The project is to build a vertical tower of
wooden cubes/matchboxes. The tower‟s base is made by one single box.

As a good banker, you are interested that the whole borrowed capital is
applied in the business. However, you do not want to lose your money,
regarding your business strength. Therefore, you should advise the
entrepreneur in the tower building to make sure that she will succeed in her
project and you can recover the borrowed capital. Since you cannot physically
intervene in the business, you can only give her some advice.

If the entrepreneur does not follow your advice, you can threaten her with the
demand of an advanced repayment of the loan. Furthermore, you also know
that the legal system is clearly on your side.

Considering this situation, you should ensure that your rights will not be at risk
by the entrepreneur or by any other person interested in the business.

   3. Briefing note for the sister’s role performance

The facilitator carefully briefs the instruction repeatedly to the role player using
the instruction.

You urgently need money to have your 2-year old daughter operated. Your
attempt to obtain a bank credit failed, since the bankers consider your new
employment to be not stable enough to guarantee the loan payment. So you
have to turn to your sister who is an entrepreneur beginning a new company
symbolised by a tower of wooden cubes/matchboxes. Each matchbox
represents a specific amount of capital. You need to ask entrepreneur for 4
cubes/matchboxes to save your daughter.

Due to the fact that your other sisters have already supported you according to
their abilities, you have to convince your brother/sister about the urgent
danger of the situation and that she should also take her responsibility as an
elder sister.

You must get the money as soon as possible.

   4. For the counselor friend’s role performance

The facilitators carefully brief the instruction repeatedly to the role player using
the instruction.

A close friend of yours began a company represented by a wooden
cubes/matchboxes tower. The tower‟s base is made by one single box. The
capital is composed of your friend‟s 3 cubes/matchboxes, 5 borrowed from a
bank and the remaining 2 borrowed from you. Your loan is a big sacrifice for
you as you had to postpone an urgent and important repair of your house to
help her.

Due to this situation, you are highly interested that your friend‟s business
generates the largest possible profits, the sooner, and the better. However,
only starting from 12 cubes-boxes the entrepreneur begins to profit. Therefore,
you should insist that your friend builds the tower as fast as possible.

You cannot help her physically in the business. However, you can advise and
guide her orally during the performance.

Explain the following point to the rest of the participants after the role players
left the room.
The entrepreneurs will carry out, separately, a task: build a tower of wooden
cubes or matchboxes under following conditions:

 Using one single box as tower base;
 Using the less skilled hand and with blindfolded eyes;
 Each cube/box represents a certain share of the total investment in this
 A certain quantity of the investment was given as a credit/loan from the
  bank, another quantity is borrowed from a friend, and the rest is the share
  of the entrepreneur;
 They have to build a tower of at least 10 cubes (meaning the initial
  investment); a higher tower may enable them to draw higher profits,
  although a collapse of the tower (in case they build too high!) may destroy
  all. From the 13th cube onward they represent sales, thus income and,
  ultimately, profit;
 The entrepreneurs should previously establish                 the   number         of
  cubes/matchboxes that the tower will have (goals);
 They will have 10 minutes for the construction;
 If the tower falls down during the stipulated time, the entrepreneurs can
  restart the tower building;
 At the end, the number of heaped cubes/boxes will be verified.


Test yourself as to how high the entrepreneur may be able to build the tower
with ease; determine the average amount of cubes accordingly. The average
height of the tower depends exclusively on the material of the cubes; if
matchboxes are used, the average may be lower, and if well-cut wooden
blocks are used, it may be considerably higher.

Explain the table by drawing match boxes

                                     Goals         Accomplishments                Profits

                    1st round

                    2nd round

                    1st round

                    2nd round


In the column called "Goals” the trainer should write down the amount of
cubes/matchboxes the entrepreneur said she intended to pile up before
beginning his/her task.

In the column called "Accomplishments” the trainer should write down the
number of cubes/boxes heaped in the tower, after the time for the task is over.

In the column called "Profit” the trainer should write down the number of
cubes/boxes heaped that exceeds 10 cubes/boxes (notice that a loss is also
possible if the tower has less than 12 boxes).

Session 6: calendar

Time: 1.5 hours

Objectives: at the end of this session, the participants will be able to,

   1. Identify specific seasonal sales prices of all participants‟ products,
   2. Identify and assess the latitude of seasonal and other influences on
      yearly income,
   3. Anticipate best sales months in a year.


   1.     Let the participants sit in the following arrangement

           a. Participants are organised in twelve pairs with the younger ones
              placed on the month following the training programme and the
              older participants placed at the end of the year (suggestion).

           b. The pairs are positioned in a circle keeping twelve positions
              (representing the twelve months in a year) as shown in the
              picture above. Where appropriate, some positions can be taken
              by one participant.

   2. Inform the participants that they all represent one year with twelve
      different months. Place the prepared folded ZOPP cards with the names
      of all months (better: the symbols or pictures for the different months) in
      sequential order in front of the twelve positions.

           a. The card with the present month is supposed to be the last in
              this cycle whereas the card carrying the name of the following
              month is identified to be the starting point. Explain that this
              exercise is going to be a competition.

           b. In the form of a trial run, ask the participants turn by turn to
              mention the respective key features of the particular month they
           are representing (such as rainy, dry season, planting season,
           harvesting of x and y crops, festivals, Eid, Ester etc.) so that they
           can imagine seasonal differences.

       c. Then, explain the rules of the competition: starting from the
          following month, the different project ideas of the participants
          (grouped along similarities!) are analysed in terms of seasonal
          selling fluctuations.

       d. For the first month of the exercise the respective "specialist" in
          the group (a participant with this product idea) will be asked to
          estimate the usual selling price (per usual unit) during this
          month, and then to determine if this price is rather high,
          average or low in the yearly cycle.

       e. Then the participants representing the following months will
          have to estimate turn by turn the sales price of the respective
          product during "their" month by providing relevant arguments.
       f. If relatively high sales prices (based on the assessment of the
          group‟s "specialist") are encountered, then the respective
          persons holding this month‟s position will stand up. Those who
          represent average sales prices squat down whereas low sales
          prices are visualised by a position sitting on the ground (original
          position!). This arrangement is thought to visually underline the
          difference in monthly sales prices over the year.
3. Explain further, that all participants are the jury which can accept or
   deny the sales price mentioned for any particular month (autonomous
   body) with good arguments. If accepted, one point is allotted to the
   respective participant (one co-facilitator stands next to the score board
   to keep the records). If the sales price suggested is not accepted -
   however - other participants positioned in other months can provide
   counter arguments which lead to a different sales price or additional
   arguments, and if these are accepted by the other participants (jury),
   then he/she earns three points.

4. The participants with these project ideas are asked to estimate the
   sales figure (important as basic figure!) they expect for the following
   month (figures are most probably based on market survey information
   or on individual experiences!). Then, ask the participant positioned on
   the following month in how far these sales figures might change during
   her represented month by explaining seasonal peculiarities. The co-
   facilitator transfers the individual score (1 point) to the scoring table
   continued tick mark method for a better visualisation). Another co-
   facilitator notes down the undisputed sales prices per month on his
   "Sales price per month per product" chart.

5. Utilisation of the "Sales price per month per product" chart: months
   during which high prices can be achieved (standing position) should be
   encircled with a black marker whereas low price months (sitting
   position) get circles with a red marker.

6. Have a brief intermediate processing after each round which should
   focus on those participants who intend to go into that business. Inquire
   if they were aware of these price differences. If not, can they explain
   them? What are the reasons? What would this mean to their
   businesses in terms of sales time and production time (depending
   on the respective production cycle!)? Can the profit margin be higher if
   they follow the indicated buying-selling cycle? Ask the other participants
   for their observations!
7. After all project ideas have been analysed in the same way, count the
   individual scores and announce the winner(s). A certain prize (cash
   money) should be handed over to the first three winners (suggested: 10
   birr for first; 5 birr for runner-up; 3 birr for third). Note down on the
   permanent "Cash Winners Chart".
8.     Processing with the following questions
        a.              Ask the participants how they liked this exercise
            (interesting, boring, fun, etc.).
        b. Why participant X won the competition?
        c. What was her edge over the others? (Elicit that he/she was able
            to interfere several times with good arguments which earned
            her 3 points instead of just one point for ordinary answers). Why
            did the others not know exactly about the respective seasonal
            sales prices?
        d. Did they previously calculate on yearly bases (or per cycle,
            week or month)?
        e. Did they calculate at all? Why is it important to anticipate these
            fluctuations (Elicit words such as business liquidity, effect on
            production, personal cash needs, stocking problems, etc.).
        f. What do these fluctuations represent in terms of other issues
            discussed during the previous days of the training? (Elicit that
            environmental factors such as climate, religious and regional
            festivities and other events play a determining role in business).
        g. If prices of the participants‟ products fluctuate over the year,
            how does it happen with the respective raw material? (Elicit that
            the same phenomenon is to be seen.)
        h. How does this influence your business? (Elicit that buying during
            low cost season and selling during a high cost month
            <hoarding> with a non-perishable product could result into good
            profit whereas the reverse might even lead to losses). Being
            aware of this requires careful planning of purchase and sales
        i. Lead over to the planning issues: how can we make sure that
            timely planning supports the idea of gaining higher profits? (Elicit
            that "planning" requires an appropriate anticipation without
            which a business woman can barely survive; knowing in
            advance some events which will happen provide business
        j. Is the coming month the best month to start the business? Are
            any other preparatory steps required which might result in a
            delay of the business start? Are some businesses now in a

                 hurry because seasonality requires an immediate start (e.g.
                 planting season) or do they have to wait for another year?

Note for facilitator

    A. Requirements
         A. Lead facilitator, 2 co-facilitators (one for the scoring table and
            another one to keep the record of the different products‟ sales
         B. 12 symbols of all months or folded ZOPP cards (with the inscription
            of all months) to be placed in front of the twelve circular positions
         C. Scoring table of participants‟ names and symbols (see below),
         D. Chart "Estimated sales price per month and product" on Kraft paper
            (see below)

    B.    Caution

         1. During the trial run and the first round, some participants might not
           be able to grasp the idea of the exercise.
         2. Some participants interfere into each other‟s sales estimates and
            arguments in order to earn 3 extra points.
         3. Others help their co-participants because the competitive idea has
            not been clearly understood.
         E. Due to tiredness, some participants do not remain in the required
            positions (standing, squatting, sitting on the ground).
    C.    Hints
         1.     Group the participants‟ project ideas into similar ones (i.e. trading
              and hoarding businesses, food production <snacks> agricultural
              projects with similar cycles, fisheries, cow fattening, etc.).
         2.   Participants sit on the ground during the starting phase of the
         3.   Remind the participants several times of the competitive character of
              the exercise so that they are keen to estimate the respective
              monthly sales; encourage counter arguments which earn even 3
         4.   Only the respective persons sitting in front (pairs) take part in the
              discussion during one round (one business idea); change of places
              for the next round.
         5.   Always ask the participants for their arguments regarding any
              specific sales prices so as to bring out seasonal influences which
              might be very specific to each locality.
         6.   The squatting position (average sales price) might be substituted
              by sitting on a chair (if sufficiently available!) because it can become
              very tiring. In any case, refrain from letting the participants
              representing highest sales months hold up their arms.
         7.   The sales price during the month following the end of the training
              programme should also be recorded by the co-facilitator in charge
              of the "Sales prices per month and product" chart.

8. Grocery shops and tea stalls (or similar project ideas) should be
   estimated in terms of number of customers per month (high -
   average - low).
9. Before proceeding to the next project idea (product), let the par-
   ticipants rapidly repeat their respective sales prices (for each
   month) to visualise the sales price fluctuations.

D. Estimated sales price per month and product CHART

  Product       1      2      3      4      5      6   7   8   9   10   11   12
E. Calendar scoring table

Name   Symbol   Rd. 1       Rd. 2   Rd. 3   Rd. 4   Rd. 5   Total

General objective: The participants groups will be exposed to various obstacles in business
simulation exercises so as to help them learn how to develop strategies to achieve their desired
business goals.

                    SESSION 1: MARKET ROOM SIMULATION (4 PS)

Time: 3 hours

Objectives: At the end of this session the women will be able to,

1. Experience the interplay of factors influencing the market such as price, product, place and
2. Realise the difficulties new entrepreneurs have when entering the market place.
3. Observe the impact of different marketing strategies on the capturing of market share.


   1. Introduce the exercise as an opportunity to experience the interplay of factors that
      influence people to buy products.

   2. Allocate the sellers to their individual product, place & price restraints as you indicated
      either: LQ/LP; LQ/HP; HQ/LP; HQ/HP.
   3. Let the sellers prepare their shops before the buyer come in.
   4. The co-trainer remains with the buyers outside of the training room and advises them to.
          a. Discuss on "What factors influence you to buy".

           b. Divided them into high, middle and low income groups.
           c. Inform them of their maximum and minimum spending limits per round. They
              must buy at least one product per round.
           d. Explain and brief their role in the exercise
           e. Remind them to keep in mind of who they buy from, what they buy and how
              much they buy

    5. When the sellers and buyers are ready, open the training room door so that buyers could
        enter, select & purchase the products of their prime choice. (30 min)
    6. In due course of time, when 10 minutes are left to finish the exercise, let the fifth seller
        enters the market
    7. Once the buyers are no longer interested in buying announce the market will close in 2
        minutes. Thereafter close the market.
    8. Ask buyers:
            a. from whom they purchased
            b. Discuss "What actually influenced them to buy?"
            c. "What strategies did the five sellers use"
            d. Highlight reasons for success and failure based on their sells performance.
    9. Announce the winners on the basis of profitability and award gifts.
    10. Let sellers explain how they made profits/ how they lost.
    11. Buyers then discuss;
            a. "What strategies did the 5 sellers use?"
            b. Why some promotional strategies were more effective than others were?
            c. What resulted in the newcomer's success or failure?
            d. Why were some of the reasons the sellers assumed as why people buy not the
                 reasons that influenced the buyers to buy?
    12. Ask these key questions;
            a. What must a newcomer do to ensure he/she captures a profitable market?
            b. How do you target a specific income group?
    13. Post illustrative pictures on the 4Ps ,
    14. Finally ask how do the marketing mix factors (4 P's) influence buyers?

Note to the facilitator:

  A. Previous day activities

Note that on the previous day before the training of this session, you need to brief the selected 5
sellers so that they could be more creative.

During the briefing,

    1. Show them the products to be sold.
    2. Explain only their role in the exercise by referring to the specific roles described below.
    3. Motivate them to implement a promotions strategy that results in profit.
    4. Select and brief the fifth seller individually about the role she will play: First she will
       observe and, then enter the market; other seller shouldn‟t be aware of her presence in
       the market as she will be an informal trader.
    5. When setting the product prices ensure that they are realistic yet don't make it less than
       they would pay at a shop outside the training venue. In areas where the women wouldn‟t
       afford to pay for such transactions, you can lend them for this exercise and recoup it
       later as if you were a banker or a micro finance institute.

   B. Requirements

Trainers/assistants            1 facilitator, 2 assistants
Didactic aids to prepare        Pictures illustrating the 4Ps (see below)

Materials for the trainers      General briefing for sellers (see below)
(during the exercise)           5 Sellers‟ order form (see below)
                                General briefing for buyers (see below)
Materials for the               Ample low price marketable products of two different
participants (during the         qualities (i.e. candies and lollipops) example: 1 kilo of both
exercise)                        products
                                Table and chairs,
                                Flip chart stand/soft board
                                Banners, pictures, or any other substitutes
Important conditions of the     An additional room for the buyers is needed.
room                            The quadrants allocation for the sellers in round one should
                                 look like this divided by masking tape:
                                    Buyer's entrance

                                       Seller 1 (LQ/HP)              Seller 4 (HQ/LP)

                                     Seller 2(HQ/HP)               Seller 3 (LQ/LP)

                                                                  Training room

     C. Briefing for the sellers and buyers

General Briefing for Sellers

You are in the business of selling products specified by the facilitator. You buy your stocks from
the facilitator‟s store and sell them to your customers. You buy your stock at a fixed price on a
cash basis. You will use your own money to buy the stocks. You can purchase additional stocks
from the store if you run out of supply. Remaining stocks after the exercise cannot be returned
to the store.

Your customers are your co-participants. They will buy your candies with real money.

Unfortunately, there are three other sellers in the market. One is selling the same candy and
brand as you but with a different price. Two other sellers sell a similar candy with a different
brand and other features. Your objective is to make more profit than your competitors.
As a seller, you need an effective marketing strategy to be able to sell your products. Convince
the customers to buy from you and not from your competitors. For purpose of this exercise you
are assigned to act as a seller of the selected product representing one of the four categories

                           High quality/High price                    (HQ/HP)
                           High quality/Low price                     (HQ/LP)
                           Low quality/High price                     (LQ/HP)
                           Low quality/Low price                      (LQ/LP)

Specific Briefing for sellers

0The unit cost of purchasing the HIGH QUALITY product is birr ________, whereas the unit
cost of purchasing the LOW QUALITY product is fixed at birr ________.

For purposes of this exercise, the selling prices of the four sellers are as follows:
        HQ/HPbirr ___________
        HQ/LP birr___________
        LQ/HP birr ___________
        LQ/LP birr ___________
(Set varying prices to high price and low price sellers, to make sure that all the four sellers have
equal chance of making profits. For example if you wish the sellers to make an average profit of
0.20cents, make sure there is at least 0.20 cents difference between the purchasing price and
selling price for all the sellers. Moreover, allow them some level of freedom in their selling
prices. However, the upper and lower limit should be set fairly among all the sellers. But, still if a
seller manages to sell it above the upper selling limit, she should be allowed to do so)

With the exception of the place, product and the selling price (which are already set for you),
you are free to formulate your own promotions strategy according to your desire and perception.

As in the real market, the customers have different purchasing power. Some have more money
others have less. Some want to spend all their money others not so. Some are easily
convinced, others not so. For purposes of this game, they are categorised into:

”A” Market - High Income Market
”B” Market – Middle Income Market
”C” Market – Low Income Market
(Give each group different colours for later identification. For example, high income group could be represented by
green colour, while middle income by yellow, and low income by red)

Decided on your own strategy and then come to buy as many candies as you desire.

General Briefing for Buyers

You will act as buyers of products which are being sold by four competing sellers in the market.
You will use your own money to buy. Each seller will try to convince you to buy his product
through various ways.

As in the real market, you as customers have different purchasing power. Some have more
money, others have less. For purposes of this game, you are divided into:

               Market                       Symbol for income groups    Maximum spending limit of
                                                                        each income group in birr

”A” Market – high income

”B” Market – middle income

”C” Market – low income

(This could be done verbally, without drawing the table on the chart)


4 Ps illustrated with symbols





                              SESSION 2: MARKETING PLAN

Here the participants will make market study for their selected IGA market. At the end of the
session many participants will realize that even though they have selected a business idea, a
systematic approach is required to justify its marketability and that the viability of the entire
business relies upon the marketing aspects of the chosen business idea.

Time: 1hr 30min

Objective :

            To give the participants to know the market aspect of their IGA

            experience the preparation and application of a market study
            Prepare for the elaboration of the marketing strategy

            The participants answer questions like Will the people buy my products? Can I sell
             the products?

Steps: 1) Ask participants to mention what should they consider when marketing their products?
Write down their response on flip chart. 15min

2) After their responses emphasize the following: Divide the participants into groups of selected
business IDA and let them discuss on the following questions and come up with reliable
information (answer) for the business plan


          What product or products do I want to produce?

          Are my product necessities or luxuries?

          Are they familiar to the people or new?


      Who are the buyers of my products? Age, Sex, social status

      What quality do buyers want? Am I able to provide this quality?

      What quantity is generally bought by each buyer?

      How frequently do they buy? Daily, weekly or monthly?

      Does their demand vary in accordance with season?

      Does their demand vary according to their wealth?


      Are there any other sellers of the same products in the area I want to serve? How many?
      Who are they?

      Where do they sell?

      How do they produce?

      How do they attract customers?

      What is the price charged by other sellers?

      What special advantages do any of the competitors have?

      What special advantages do I have?

3) Allow group to present their findings to the participants and allow the participants to reflect on
the respective marketing plan
Processing Questions:
    Is it useful to make such market study? What for?
    Why is it important?
    What can be learnt from this exercise?
    What are the main problems if a person who runs a small business has to make a study
       like this?
Many participants will realize that even though they have selected a business idea, a systematic
approach is required to justify its marketability and that the viability of the entire business relies
upon the marketing aspects of the chosen business idea.

                               SESSION 3: PRODUCTION PLAN

In this exercise, the participants proceed with their IGA development by working on the
production planning.
Time: 1hr:30min

OBJECTIVES: By the end of the session participants should be able to:-

                           Determine whether they are able to produce the product of their
                            proposed IGAs.

                           Identify cost elements in producing a specific product
                           Explain and be able to identify and categorize production activities
                            and respective costs

                           recall the various elements of a complete production plan

Try to generate a positive attitude among the participants for assessing operational and marketing
aspects before the start-up of an IGA.

The facilitator should guide the participants to discuss the elements of production while referring


   Can I operate the activity? Trainer probes more on the four aspects under question 1
    namely:- skills, knowledge, time & seasonality . Emphasize that skills & knowledge refer to;
    knowing what tools & equipment, raw materials, production method is needed & how to use
    them. Then divide the participants in to the previously selected business and perform the
    production plan based on the question listed below;

Tools and equipment

       What equipment and tools will be required?

       How many do I need of each?

       Where can I get them?

       Can they be borrowed or hired?

       How will I transport it?

       Will the equipment need repair?

       Who will do the repair?

Raw materials

          What raw materials and other inputs will be required?

          What quantity and quality do I need?

          Can I get these inputs locally?

          How will I transport these items to the production site?

Production method

Production method and production site

             What will be the production method?

             Am I experienced with this method?

             Do I know how to solve any problem that might arise?

             Do I know where to get help?

             Where will the activity operate?

             Is this site suitable?

             If any energy source is needed, is it available?


             How much time is required for this activity?

             Can my family members and I spare this amount of time?

             Will I need any workers with special skills?

             If so, are these people available?


             Can the activity operate year round?

             If it is seasonal, what alternative do I have for the off season?

             Do I need to communicate with the Government or any other offices?

             If so, do I know where to go, whom to talk to and what to discuss?

Conclude the first important point, by telling participants that, if they know what equipment to use,
the raw materials and where to get them, the method of production and the labor required to do the
work, then most of questions about knowledge and skill factors required to operate the IGA(s) will
be answered.

                                 SESSION 4: FINANCIAL PLAN

It aims at making the participants understand the importance of the financial plan as part of the
IGA plan, making them internalize the basic elements of the financial plan and preparing it. It
starts by asking the basic question ; “HOW MUCH MONEY DO I NEED TO START-UP AND
Time: 2hr
Explanation for the facilitator:

As mentioned in previous sessions, the decision on which IGA to select depends on a number of
factors, including the operator's skill and knowledge, the market situation and potential profitability.
These factors, which are important points #1, #2 and #3 need to be examined for each IGA that
is under consideration. This session starts by reviewing this concept.

Important points #4 and #5 are then introduced. Both of these points refer to all the family‟s IGAs,
rather than just the IGA that the participant is intending to start-up.

Thinking about the amount of money that the family needs to start up and operate all its economic
activities is the fourth important point. The IGA that is started up as a result of this training should
not be thought about in isolation from the other income flows within the family. Any shortage of
money in a family IGA may lead to diversion of funds away from the participant's activity to one that
is operated by another member of the family. So the fourth important point is the capital
requirement: How much money does the family need to start-up and operates all its IGAs? Where
will we obtain these funds?

Poor people obtain their required money from various sources: Their own savings (in cash or in
assets), from rotational savings and credit associations (ROSCAs/Iqqub), relatives, local
moneylenders or NGOs. One source may not supply the total amount of money required for all the
family's IGAs. This session calls upon participants‟ previous experience with ROSCAs as a means
of mobilizing savings for capital formation or meeting unforeseen expenditures. Before obtaining
money from any source, participants should think carefully about their total capital requirement.
Sometimes available funds are almost fully expended on start-up costs, leaving insufficient funds
for paying working costs. In this case, the production and thus income from the IGA may not be
sufficient to repay loans that have been taken. The participant may be worse off rather than better
off after starting up the IGA. Thus, accurate calculation of both start-up costs and working costs is
essential for all the family‟s IGAs. The total then needs to be compared to the amount of capital
available to determine if it will be enough. The need to calculate the funds required for all family
activities should be fully discussed during the session, with reference to all the points mentioned

This session also introduces the fifth important point that needs to be considered before
selecting an IGA: Does the family need income from the participant‟s IGA to cover weekly
household expenses, or to help cover expenses that occur occasionally? The participant's answer
to this question will affect his or her choice of IGA. If income is needed to pay weekly family
expenses, then an IGA should be selected that gives a return on a daily or weekly basis. If, on the
other hand, other family members earn regularly and this income is supplementary, an IGA with
irregular earnings may be selected.
Most rural families have income that fluctuates and flows according to the employment and other
income earning opportunities that are available each season. One key point that the trainer should
stress relates to switching from one IGA to another as a result of seasonal swings in demand: A
participant should never switch IGAs until s/he has carefully considered all the five
important points. Indeed, this is the fundamental message that all participants should carry away
from the training course. If they remember and use the five important points before starting up any
IGA, then their decisions will be well thought out, and their IGAs will be more likely to succeed.

Thus, the fifth important point does not relate to total family income or total family expenses,
although these are of course important. It instead asks participants to think about their needs for
short-term income, and based on this finding, to select an IGA that is appropriate. This focus is
based on the observation that many people fail in their IGAs because they are forced to use money
that should be used to cover working costs to pay weekly household expenses.

Now tell the participants that they will hear a story.

                                THE STORY OF ABDELA’S FAMILY

Abdela and his wife Fatuma live in a small trading center in West Hararghe. Abdela is a tailor and
has had a successful tailoring business ever since he learned this skill from his father at an early
age. His wife Fatuma raises vegetables that she sells at the weekly market. Some of these
vegetables are also consumed by the family, which includes three sons and two daughters still
living at home.

Their oldest son Abdi has recently returned home to start a new life, after his contract work with
Wonji Sugar Works ended. Abdi appealed to his parents for a loan to start up a small restaurant in
the trading center. He decided on this business because he was fairly knowledgeable about
restaurant business, having done some part-time work in a restaurant while in Wonji. He also
observed that there were no many restaurants nearby and he lacked his father‟s tailoring skills,
because he went to work in Wonji when he was still young rather than learning tailoring from his
father. Amina grew up in town she does not have the knowledge of vegetable growing like her
mother-in law Fatuma.

Abdela and his wife are reluctant to lend their son the two thousand requested because they
noticed recently that their sewing machine, which has served them well for many years, is no
longer working properly. They have taken it to Asebe Tefri several times to have it repaired and
were recently told that the next time it stopped working it might be impossible to fix it. Therefore,
Abdela and his wife do not want to withdraw money from their joint savings account at the
Commercial Bank until they need it to buy a new sewing machine. They also need to keep some
money there in case there is a family emergency.

They know that their son Abdi spent the terminal benefits provided to him by the Sugar Corporation
rather than investing it in some new business. So they wondered why they should support their
son‟s business idea. However, Abdi is now hanging around town unemployed. As a result, Abdela
and his wife have to provide food and lodging for Abdi, his wife Amina and their two small children.
They are all living with Abdela and Fatuma until they can start earning for themselves.

Abdi has recently attended a training course on business skill training. He assures his parents that
he has learned some skills that will help him to manage the business successfully. One thing that

he has taught him is to think about all the family‟s needs for capital rather than just the new activity
that is being started. He tells his parents that he would like to discuss this with the family before his
parents‟ makes a decision about the loan.

Break the participants into small groups of four persons each. Allow each group about 30 minutes
to decide what the family should do. At the end of the given time, have all the participants come
back together into a large group.

A spokesperson for each small group should tell the large group what they decided, and why. After
each presentation, discuss the decision taken, answering all these questions:

        What are the advantages of the decision taken?
        What are the disadvantages?
        Does this decision expose the family to a lot of risks?
        Are there any alternatives that would be less risky?
Some of the identified alternatives might be loans from moneylenders, a bank, NGO/MFI or
relatives savings associations or personal savings.

Next Step:

Tell the participants that they are going to discuss the advantages and disadvantages of the
different sources of funds that they would consider for starting and operating their IGAs using a
matrix. This should help them come out with the less risky source.

  Tell participants to go and collect local materials
  ask one participant to draw a table similar to the matrix below. Solicit for the different
   sources of funds from the participants.
 Place the local material in the table according to the rate that each source of finance
   according the criteria set on the columns
 Add up the score in the row and place the ratting and select the one with highest score to be
   the best financing.

                                  Interest     Easy to get/      Duration   Score           Rating
                                  rate                           for paying
                                               Access            back

Borrowing from a Relative

Loan from the Banks

MFI e.g. Oromo Saving &
Credit Institution

Loan from SLA

Personal savings

Business men/women

Scoring system: 4 –Excellent; 3 - Very good; 2 – average; 1 – fair; 0 – poor

Note: You can have more than the three columns depending on what conditions the participants

The facilitator should ensure that the points below are covered.

   Loans from moneylenders usually have high interest. This makes it more difficult to earn a
    profit from the activity.
   Banks may have a lower interest rate, but have a lot of requirements that poor people have
    trouble fulfilling.
   (Funding from MFI‟s should be emphasized with a clear explanation on the common basic
    requirements from these institutions;
     interest

     repayment frequency

     meetings

     group securities)

   Loans from all sources must be repaid. If the business fails, the borrower will lose some of his
    assets. In the case of Bank‟s, a loan in default must be repaid by the other members of the
   Loans from a revolving fund.

   Using own savings is less risky than using loans.

                                 SESSION 5: THE BEST DEAL

This group exercise has been created to stimulate thinking about strategies of cooperation and
competition and to increase the participants‟ ability of strategic behavior. During the exercise,
participants develop, test, compare, and evaluate strategies for several group tasks. They need
to decide whether to co-operate with others or not, because in the first round, the tasks can be
fulfilled by all groups, whereas in the second round the task of one group is to prevent one of
the other groups from carrying out its task.
Time: 1.5 hours

Objectives: At the end of this session, the participants will be able to

  1.     Develop group strategies for tackling a competitive situation,
  2.     Evaluate formulated strategies in competition with others
  3.     Improve their choice of strategies of co-operation and competition

  4.     develop competencies for business negotiations


    1.   Motivate the participants for engaging themselves in this game; (5 min)
    2.   Explains the general instruction of the exercise for the whole class; (5 min)
    3.   Allow participants develop their group strategies; (10 min.)
    4.   participants execute their respective strategies trying to fulfil their tasks; (5 min)
    5.   group performances are discussed; (10 min)

    6. Explains the rules for the second round; (5 min)
    7. Allow participants develop their group strategies; (10 min)
    8. participants execute their respective strategies while trying to fulfill their tasks; (5 min)

    9. Processing

             a. How did the different groups develop their strategies?

             b.   Did they assign different tasks to the group members?
             c.   Did they prepare a way to find out the tasks and resources of the competitors?
             d.   Did they choose for a competitive or co-operative strategy? Why?
             e.   What do you think about the destructive task in the second round?

    10. Generalizing

             a. What are the advantages and disadvantages of co-operation and competition?
             b. Which kind of strategy is more meaningful in business life?
             c. Why is it important to have negotiation skills?

Note of the facilitator
   A. Requirements

Trainers/assistants          1 trainer, 1 assistant
Materials for the trainers    paper and pen to take notes of the groups‟ discussion and
(during the exercise)          other observations for processing
Materials for the            - 4 plastic or card made buonos from each of the 4 different
participants (during the       colour (i.e. 4x4=16 buonos) per group wrapped up in paper
exercise)                      for both the first and second round

   B. Hints for preparation, typical situations and dangers

Take care that the buonos are distributed in a secret way, wrapped up in paper or in sealed

The competition between the groups, especially in the second round may lead to unfair tricks,
so observe the groups and intervene if you notice tricks which are not allowed. Keep also
control of the emotions, as strong personalities may dominate the destructive task and
exaggerate their group performance.

Choose carefully between the different round options; in some groups it can be better to give a
second task which is not destructive. The following task cannot be achieved by all groups,
although each group has the chance to achieve its own task:

Tasks for 1st round:

Group A: you have to hand over to the trainer 12 buonos (cards) of one single colour;

Group B: you have to hand over to the trainer 8 buonos of one colour and 8 of a second colour

Group C: you have to hand over to the trainer 20 buonos of any colour.

In processing, discuss strategies according to your training goal and target group. Co-operation
is not always the best strategy for an entrepreneur.

Tasks for 2nd round:

Group A: you have to hand over 8 buonos of one single colour and 8 buonos of another colour
to the trainer.

Group B: you have to hand over 7 buonos of one colour and 7 buonos of another colour to the
Group C: you have to prevent group A from fulfilling the task


Time: 1.5 hrs.

Objectives: At the end of this session, the participants will be able to

   1. Formulate strategic ways of confronting varying entrepreneurial situations;
   2. Analyze future entrepreneurial situations in accordance with the three categories of
      strategies identified.


    1. Ask the participants what one should do if they are encountering problems in business (5
    2. Choose two volunteers and brief their roles outside the training hall (10 min)
    3. Divide the remaining participants into two groups and brief their roles for the encounter
       with the volunteers (5 min)
    4. Choosing two participants and briefing their roles (5 min)
    5. Let both volunteers act simultaneously with their respective groups (i.e. one-half of the
       remaining participants for 10 min each).
    6. Ask the two observers to reflect on their observation of the volunteers‟ behavior. (5 min.

    7. Ask each of the two volunteers to respond to the following questions turn by turn (5 min

            a. How do you feel with the experiences made during this encounter with your
               group (directed towards both volunteers!)?
            b. What were actually the strategies planned by the volunteers (refer to their
               revealed plans before the role-play!)?
            c. Why (or why not) did your strategy work?
            d. What went wrong?
            e. What could you have done better?
            f. What were the main differences between planning and reality?
            g. Why was planning not adequate to the situation encountered?
    8. Ask the two groups to respond to the following questions turn by turn (5 min each)

            a. Which internal understanding did the groups follow?
            b. Why did they (not) change their behaviors?
    9. Ask the who class to respond to the following questions. (5 min)

       a. What kinds of competencies are required to act successfully in similar situations,
          which are difficult to predict?
       b. What are the lessons to be learned in this case?
       c. How differently would the volunteers react if provided with a second chance?

10. Generalize with the following discussion points. (10 min)

       a. Based on the role-plays, can you identify certain types of situations, which
          require certain strategies?
       b. Which are the situations difficult to master by a single entrepreneur?
       c. In terms of environments, where is the greatest chance for an entrepreneur to act
       d. Explain the three categories of strategies by giving examples (see note below),
          and by integrating aspects of the role-plays witnessed by all participants.

   A. Three categories of strategies

It is possible to differentiate between three basic strategies, which are at the disposal of each
human being. It is essential that the prevailing situation be analysed before any of these
strategies (or a mix) might be applied.
       -    Give the following example: The bank requires a personal financial contribution from
            the entrepreneur who tries to get a loan for a business project.
       -    Then ask: What should one do in such circumstances? What kind of strategy is
            required here?
       -    The answer should be that the entrepreneur should fulfil the required amount either
            through personal savings or with the help of friends. By doing so, the person is
            avoiding existing obstacles, and adapting to this given situation while pursuing
            his/her goals.
       -     Give the following example. A person has an excellent competency of cooking
             foodstuff but might not do well in recording and managing finance.
       -     Then ask: What should one do in such circumstances? What kind of strategy is
             required here?
       -     The answer should be hiring an accountant (another person who is competent in
             financial management) if the own calculating and accounting ability is not well
             developed. This in other words is to say that this person complements herself via
             taking the initiative to actively seek and get support from others.
       -    Give the following Examples: A certain businessperson faced a specific problem.
            Thus, she has taken the following measures:
            1. Joined an already existing support organisation or founded one (such as an
               women association) to influence the meso- (or even macro) environment in her
            Exploited certain intimate knowledge about an important person who tries to block
            her way(created this problem for her business), then turns into her advantage to
            solve her problem.
           Ask the participants: What kind of strategies do we observe from the above examples?
           The answer should be that, the person in the above situation is trying to turnaround the
           situation alone or with the help of others in her favour. This is what we call breaking the
           walls (obstacles), and changing (re-shaping) conditions for in our favour.

   B. Briefing notes to various actors

                                     FOR VOLUNTEER 1

1. Explain that her task is to meet a group of her co-participants and to get them to stand in a
   circle holding handing in hand.

2. The time given is 5 minutes (preparatory phase) and five minutes for task execution

3. Instruct her to think of a strategy regarding how she will successfully complete her task.
   Prior to confronting the group, ask her to answer the following questions to you

       -   What are three of the possible strategies that you plan to use to make the group
           accomplish the task mentioned above?

       -   Which among the three strategies will you use and briefly explain why? What are
           your assumptions?

       -   Do you foresee any possible problems? Relate them to your assumptions!

FOR GROUP 1- encountering volunteer 1 -

1. Explain that this particular group will play passive and seemingly disinterested with the
   volunteer who will be given five minutes to interact with it in order to accomplish a certain
   task. For example, some of the group members can daydream, others feel sleepy, and still
   others can seriously read documents.

2. Instruct them to play the role as natural as they can. They are not bound to follow the
   requests of the volunteer if they desire so. However, if the volunteer has very convincing
   strategies, they might follow what she asks them to do after about five minutes, i.e. shifting
   their behaviour is possible


   2. Explain that her task is to meet a group of her co-participants and to make them clap
       their hands in your rhythm.

   3. The time given is 5 minutes (preparatory phase) and five minutes for task execution

   4. Instruct them to think of a strategy regarding how she will successfully complete her
       task. Prior to confronting the group, ask her to answer the following questions to you

           -   What are three of the possible strategies that you plan to use to make the group
               accomplish the task mentioned above?

           -   Which among the three strategies will you use and briefly explain why? What are
               your assumptions?

           -   Do you foresee any possible problems? Relate them to your assumptions!

                            FOR GROUP 2- encountering volunteer 2

1. Explain that this particular group will play active and seemingly interested with a volunteer
   who will be given instructions to interact with it in order to accomplish a certain task. But this
   group is keenly interested to make the volunteer also do something for them, i.e. do certain
   favours such as rearrange the chairs or collect some documents, ask payment in advance
   for their actions, etc. Some can aggressively listen, others motivate the volunteer, and still
   others can motivate the group to follow what the volunteer asks.

2. Instruct the group to play the role as natural as they can. This is to say that, they are not
   bound to follow the requests of the volunteer if they so desire. However, if the volunteer has
   very convincing strategies, they might follow what she asks them to do after about five
   minutes, i.e. i.e. shifting their behaviour is possible

FOR Observers

Explain that, the observers should be positioned in a way that the volunteer does not take her
as acting member of the group!

After the encounter with the volunteer, you should ask the observes to discuss the results of the
interaction. Please, refer to the following guiding questions:

           -   Did the volunteer's strategy work? Why so or why not?

           -   Who managed the situation, the group or the volunteer?

           -   What went wrong with the volunteer‟s strategy?

           -   What would you have done in the place of the volunteer?


Time: 1.5 hours

Objective: At the end of this session, the participants will be able to

    1. discuss the necessity of time management

    2. practice time management

    3. recognize good time management as a strategy to deal with one‟s most precious asset:

    4. discover how to balance job schedule with personal life


    1. Ask the participants to carefully listen to the case study below and respond to the

    2. Read the case study slowly as you are posting the related figurines on the board or wall.

    3. Ask them the questions written after the case study, and

    4. Finally demonstrate the illustration given below.

Note to the facilitator:

    A. Case study

W/ro Almaz is living a small rural village and has a family with three children. She earns money
through selling small homemade breads at the nearby market. She wakes up early to bake the
breads and prepares breakfast for her family. She also cooks lunch for the day. She then cleans
her home and sends her children to school. When she was about to go out, her neighbors call
her for coffee and she stays there for few minutes.

After that, she met her relative and spent time with her too. When she arrived at the market, it
was too late to meet most of her customers to sell her bread Since they prefer to eat bread
during breakfast most of the time. Thus, she has to stay for long hours to sell all her bread. She
feels despaired as she has to go back home before her children arrive from school. In this time,
she might not be able to sell half of her pieces of breads that most will be wasted. She is
worried for her family as they totally depend on her.

What is her problem?

How could she solve this problem?

B. Illustration about time management

Please make sure that you have arranged a jug, sand, two glasses of water, small gravel
and a few small stones for this illustration earlier in time. Make sure to try the exercise
yourself first before class and that the amount of ingredients your have is the right amount.

1. Divide the above ingredients in two portions beforehand.

2. Explain to the participants that the jug represents the amount of time they have in a day.

3. Start first with demonstrating the wrong sequence as elaborated below.

       a. Pour a glass of water in the jug

       b. Add the half portion of sand on top of the water

       c. Add the gravel after the sand

       d. Put in the small stones last

       e. Ask the participants if the jug was enough to contain all the ingredients.

       f.   The answer should be “no” and ask why it wasn‟t enough.

4. Demonstrate a second round in the following sequence.

       a.   Tell the participants that you are using the same volume of ingredients.

       b. Start by first putting in the small stones in the jug

       c. Add the gravel on top of the pebbles

       d. Then add the sand, and

       e. Finally add the glass of water.

       f.   Ask the participants whether the jug could contain all the ingredients.

       g.   The answer should be “yes”; then ask how the same amount could be contained

       h. The answer is that the order of sequence was changed i.e. in the first
          demonstration, it was started from small things with being followed with big things
          whereas in the second trial the reverse was made i.e. starting with the big things
          followed by small things.

5. Ask how they interpret this scenario in relation to time management. Have a thorough
   discussion on this issue.

6. The answer is that if we start with trying less important things in our day, these things
   consume our time and we end up without accomplishing progress or important tasks
   whereas, if we start with accomplishing the big progress tasks first, there will be enough
   time to accommodate the less important little things. Even if the little things wouldn‟t be
   accomplished, that wouldn‟t hamper our progress to our goal.

                                SESSION 8: SCAMPER MODEL

Time: 1.5 hours

Objectives: at the end of this session, the participants will be able to;

   1. List the 7 basic elements of the SCAMPER model for product innovation,
   2. Identify modifications and improvements to their product/services by utilizing the
      SCAMPER model;


   1. Highlight the importance of taking into consideration demands of the market when
      improving or developing a new product.
   2. Explication

           a. Explain the meaning of each component of SCAMPER model one element after
              the other by using the prepared meta plan cards and pictures.
           b. Walk through the SCAMPER model together with the participants via a common
              example such as a marker pen or another product well known to them.
           c. For example,
     Substitute: wood to plastic case
     Combine: milk with coffee
     Amplify: doormat to make a carpet
     Minify: a traditional shoe to serve as ornamental a key holder
     Put to other use: baby carrier as a tourist item
     Eliminate: reduce the fat content of a milk to feed children
     Rearrange: a plot of farm land to accommodate more vegetables
   3. Explication of the criteria to judge the groups. These can be;
           a. innovativeness,
           b. practical usefulness,
           c. feasibility to produce and market, and
   4. significant value
   5. Let the groups with similar products and services come together to apply the SCAMPER
       model on their products/services. (40 min.)
   6. Announce time is over and ask each group to display their new products/services or
       explain their innovative findings verbally.
   7. Let the jury which is formed from among each groups with the help of the co-facilitator
       evaluate each finding based on the above criteria and decide the winning group.
   8. The chairman of the jury awards the prize to the winning group.
   9. Processing questions; (20 min)
           a. What elements of SCAMPER were easy to apply?
           b. What difficulties did you have in utilising the model?
           c. Is it possible to apply two scamper components on one product during
              innovation? (give one local example and ask the participants which methods they
              have used)
          d. What do you think about the modified or new products?
          e. What do you like?
          f. What do you not like? Why?
          g. Would you buy this modified or new product if you find it in the market?
   10. Generalise with the following discussion points; (20 min)

           a. Are all creative ideas feasible? Why do you say so? If not, what are the
           b. What do you have to do to eliminate the obstacles?
           c. How can you use the SCAMPER model in your own business? Whom do you
               plan to involve?
           d. Conclude with a remark that improvements or new products have to be viable
               from a marketing perspective (demand and costs).
Notes to the facilitator:

   A. Requirements

Trainers/assistants          1 lead trainer,
                             1 assistant to act as a jury
Didactic aids to prepare     Meta plan cards with the meaning of each letter to explain the
                             model reinforced with pictorial symbols
Materials for the facilitators  1 product to explain the model, e.g. a marker pen with both
(during the exercise)            ends usable
                              4-5 different products to be used in 4-5 groups of SCAMPER
                              Group award for most creative group

   B. Pictorial representation of the SCAMPER model





   Put to other use



Conclude the session by reviewing the learning. Then move to the course closing.


General objectives: In this module the major functions of a business are tackled with the
intension of making aware the participants about the variables which make one successful in
business. Moreover, the women would get an opportunity to be empowered with basic business
management competencies.

                              SESSION 1: RISK MANAGMENT

Begin by explaining that the session will consider issues related to the management of the IGA.
Tell the participants that they will first discuss the situation of a woman who had a management
problem. They should listen to the explanation of her situation and then discuss the possible
Time 1:30 min
    Explain the importance of managing the cash that flows into the IGA from the sale of
    Describe the four areas where incoming cash should be allocated.
    Determine the amount of money from the IGA that will be available for personal
     expenditure and savings, after replenishment of funds for working costs and loan
     repayment (if applicable).
    Decide how to keep the different categories of money separate.
    Minimize the risks to the well being of the family and the IGA, by understanding the
     importance of controlling credit to customers and of saving money on a regular basis.
Step: 1) Read the following story15min

Six months ago Worknesh started a small grocery shop in her village with Birr1000.00 obtained by
selling some of the goats owned by her family and selling produce which she had grown.. The start
was fine and promising. In order to expand her business she got a loan from a revolving fund in the
village. She kept her shop open for the whole day and remained busy selling the products. She
kept the cash received from sales in a wooden cash box. From time to time, she used some of the
money in the cash box for reinvestment in stocks. She also used money from the same cash box
for family expenses.
One day an extension agent from CARE came to visit Worknesh to see how her shop was
progressing. The extension agent noticed that stocks of many items were low and that many of the
tin boxes used to stock items such as biscuits and popcorn were completely empty. The extension
agent tried to find out from Worknesh whether the shop's condition was due to a low profit that
made her reluctant to restock the items. But from the conversation, the extension agent realized
that the income earning prospect from the shop was still excellent. She should have plenty of
money in the cash box to restock her shelves on a regular basis, to expand the business and to
pay necessary household expenses on a regular basis.
Worknesh asked the extension agent to refer her to CARE and the MFI‟s Loans officer. She said
that she needed another loan so that she could restock the shop. But the extension agent was

confused. He wondered why Worknesh needed a loan when she was apparently making a good
                                                 * * *

2) After telling the story, ask the participants the following question:30min
      What do you think could be the cause of Worknesh's problems?
Allow the participants to discuss and come up with a number of possible answers. These might
include the following:
      Worknesh withdraws money from the cash box to pay household expenses. May be she is
      spending more than she can afford, given her level of earnings from the shop.
      She may be giving away items to friends and relatives, thinking that the amounts are small.
      But over time, this could be a reason that her stocks are being depleted.
           She may be giving credit to customers, and not getting all this money back.
           She might have needed advice on how to run the business when it expanded.

Note: If participants do not name all of the above points, mention them yourself. Then explain that
these types of problems are common for IGA holders. For this reason, they need to actively
manage the cash and credit from their IGAs. Tell the participants that this is the most important
aspect of management that they must understand if they are to run their IGAs profitably.
Remind the participants that at the time of IGA start-up, cash flows into the business from a
combination of personal savings and loans, which are used to pay the start-up costs and the
first batch of working costs. After that, production takes place and cash flows into the business
from sales.
Then explain that this cash must be carefully managed. Tell the participants that one of the most
important points that they should remember when managing their IGAs is that the cash received
from sales should be allocated to different categories before any of it is spent.
3) Ask the participants what categories they would allocate the cash they receive from their
4) Tell them that there are four important areas they need to allocate their cash in before spending.
These are:

        Working costs/ Re-stocking
        Loan repayment
        Household expenses
        Savings
The facilitator can illustrate this using a cross sign as below. Draw it on the ground.

                  1. Restocking                 2. Loan Repayment

                  3. Family expenses            4. Savings

Briefly discuss each of these areas. Working costs and household expenses have all been covered
in previous sessions. Mention that savings are needed to pay for occasional expenses, prepare for
unforeseen events, and replace start-up costs that wear out or break down. Make sure that the
participants understand each of the categories before moving on. 10min
5) Then tell the participants that the cash received from sales should be allocated to working costs
and loan repayment before spending on household expenses or setting aside money for savings.
Ask participants why this is so. Make sure that the following important points are brought out
through the discussion:30min
a)   Setting aside money for working costs
     The working costs for the first production cycle were paid for from the initial capital that was
     obtained from savings or a loan. Now that the money has been spent, replenishment of funds
     for working costs must be made from the cash received from sales.
     If this is not done, the business will not have enough money to keep buying the raw materials
     and other inputs. Remind the participants that this was what happened to Worknesh‟s
     grocery shop.
     Production will gradually be reduced which will lead to reduced sales.
     Reduced sales will reduce the ability to repay the loan and to earn money from the IGA.
     Eventually the business will fail due to this 'crisis of working capital'.
b)   Setting aside money for loan repayment

Loans must be repaid. If they are not, the participant will suffer the consequences of default:

     She will be more indebted.

     She will be pressured by other members of the CSSG, by the bank or by the NGO.

     She may lose membership in the CSSG

     Even if she remains a member, s/he will lose her/ his goodwill and may not be eligible for
     future loans.

     She will lose her peace of mind.

     Ultimately, she will have to repay the loan, if necessary by selling household goods, which
     will only make her more vulnerable than she was before.

Tell the participants that the cash available for family expenses may not be as much as they
expected, after they have replenished their working capital and made their loan payment. Tell them
that this could happen even if they calculated their expenses correctly during the selection process
(Sessions 2 and 3). Mention that the income from the IGA that they calculated during the selection
process is different from the cash available for consumption for two reasons:

     It did not take into account the cost of credit. This is the interest and fees that they must pay
     to the moneylender, bank or NGO for the use of the loan money.
     It did not take into account the formation of capital. A large part of the loan installment is
     repayment of the principal borrowed to pay for start-up and working costs. Once the loan is
     repaid, the capital invested in the IGA belongs to them.

Make sure that all the participants understand these two points.

Then remind them of the discussion about Worknesh's Grocery Shop. Tell them that Worknesh's
cash problem may have been partly caused by the loan repayment burden. The earning power of
her IGA was not enough to allow her to repay the loan easily as well as maintain her family at a
decent standard.

Ask the participants if they can think of any possible solutions to Worknesh‟s problem. Through
discussion, the following possibilities should emerge:

  She should stop giving credit and/or giving away items.
  She should reduce household expenses to a minimum for the time being. After the loan is
   repaid, her own capital will have increased. She may be able to take a second loan to expand
   the scale of operation or to take up a second IGA. Both of these steps will increase her earning
 Worknesh‟s family might have more capital that could be introduced into the IGA. This would
   allow her to operate at a larger scale or to introduce a second IGA at the present time.
 She can see if there is any way to reduce the costs of the IGA.
Participants may mention Worknesh‟s suggestion of taking another loan at the present time.
Emphasize that this is not a good solution to the problem, as she is already indebted.
Consequently, another loan will make her more vulnerable.

After a full discussion, move to the next step.

The facilitator should lead the participants to discuss the common risks and unforeseen events
that can affect an IGA. They may mention things like:-

  Loss customers
  Giving out things on credit then the customer fails to pay back
  Spending a lot of time going to these customers to ask them for repayment. This is time that
   could have been spent on the IGA.
 Theft of stock
 Forgetting how much credit is owed to you.
 Natural disasters like
                Drought
                Flood
                When a family member falls sick
                Fire
                Accidents
Ask the participants what the results of those risks and unforeseen event will be for the IGA?

They need to mention things like:

   There will be less cash coming in from sales.
     This will make it harder to allocate the cash successfully among the four categories (working
     costs, loan repayment, household expenses and savings).

     Uncontrolled credit could eventually lead to failure of the IGA.

     Sickness will force you to use money set aside for working costs to pay for the doctor's visit
     and for medicine.

Tell participants that unforeseen expenses and events are out of our control while risks are
things that we expect will happen to our IGAs.

Now ask them if other IGAs also have business risks. Invite a short discussion on the risks of the
IGAs mentioned by the participants.
Ask the participants if these risks and unforeseen events can be managed. If any participant
thought it was possible, ask how s/he would do that. S/he may mention:
     Taking help from relatives and neighbors

     Taking another loan to get the IGA started again.
     Using personal savings
If no participant offers the above suggestions, mention them yourself. Then ask the participants:
     Which of these solutions makes you more vulnerable than you were before?
     Which solution preserves your control over your life?
Participants should say that the first two options make them more vulnerable and the third
preserves their financial independence.
Now tell the participants that savings are very important because they help you to plan for
and manage the risks that may endanger the well being of the family and the IGA. Savings
allow you to:
     Cover occasional expenses.
     Manage risks that are related to the operation of an IGA, such as theft or spoilage
     Manage the risks of unforeseen expenses or events.
     Increase your capital, so that the IGA can grow without an increasing burden of debt.

This is why savings is one of the four categories where cash from the IGA should be allocated.
Although it may be difficult, saving a small amount of money from each production cycle is
essential if the risks are to be successfully managed. The importance of saving is emphasised to
cater for unforeseen events.

Generalizing: Conclude this step by emphasizing the point that cash received from sales must
be allocated to loan repayment and working costs before being used for consumption. Failure to
manage the cash is one of the biggest dangers that poor people face in managing their IGAs.

                           SESSION 2: PRODUCTION AND COSTING

    Time: 3 hours

    Objectives: at the end of this session, the women will be able to;

    1.   identify the different costs involved in an income generating activity
    2.   differentiate between fixed and variable costs and can classify the various costs
    3.   calculate the cost per unit


    1. Introduce the exercise as an opportunity to explore the concepts related with production
        and costs. (5 min)
    2. Ask the women the difference between a fixed and variable cost;
    3. Give illustration of fixed and variable costs by using the most common product service in
        the market (you can also use the example given below)
    4. Group the women in four and Read the case study about Fatuma‟s farm business (do
        this repeatedly as needed by symbolizing the various cost elements and affixing the
        figurines on the board/wall while reading.) 5 min.
    5. Ask the women to classify the costs as variable and fixed; (45 min.)
    6. Let them also try to use their own talents to calculate cost per unit (45 min)
    7. Ask each group to come to a plenary and explain their answers (20 minutes)
    8. Display the result and discuss (30 min)
        1. Did the groups arrive at reasonable costs per unit?
        2. What can you conclude about the viability of Fatuma‟s farm business?
        3. How did she fix her prices?
        4. Would Fatuma make profit or lose money?
        9. What can she do to improve the results?
    10. Generalize by discussing;
            a. Is cost calculation applicable to your enterprise?
            b. If yes, how? If not what is the problem?

Note to the facilitator

    A. Requirement

Trainers/assistants           1 lead trainer
                              1 co-facilitator
Didactic aids to prepare         Case study and figurines (see below)
                                 Chart ”Cost components” (see below)
                                 Chart ”Pricing component” (see below)
                                 “Fixed and Variable cost explanation” (see below)

   B. Fatuma’s Case study and figurines


   Fatuma is a very hard working farmer who lives in East Hararge area. She has a small plot
   of land which she uses for producing peanuts and sell to the market.

            She harvests 5 quintals of peanut per annum from her plot of land.
            She uses improved seed which she buys every year for birr 100.00;
            she hires a ploughman to plough her land at a wage of birr 25 per day for 2 days;
            she employs 5 workers to weed her farm for 2 days each at a wage rate of 10 birr
             per day per worker;
            she pays for the harvestman a wage or birr 25 per day for 6 days for collecting,
             winnowing, putting into sacks and pilling in the store;
            she buys 5 sacks for birr 5 per piece;
            she rents a donkey to take the 5 quintals every Saturday for 5 weeks after the
             harvest and pays 10 birr for a day rental of donkey;
            She pays for loading and unloading 3 birr and 2 birr respectively each time she goes
             to the market;
            She pays for the market place she occupies a birr 50.00 annual rent;
            She pays for storage at the market place 10 birr per month for leaving unsold peanut
             and finished selling in 5 months.
            She sells each quintal for birr 200.00 by retailing in an open market.





5 quintals




Loading on Donkey

   C. Answer to the case study

   Unit cost calculation

                     Total cost                       Unit cost     Profit/loss per unit

100+ (25X2)+(5X2X10)+(25X6)+(5X5)+(5X10)+(5X5)=600.00    600/5=120.00   200-120=80.00X5=400.00

    Distinguishing fixed and variable costs

    Fixed costs                                         Variable cost

    Rentals of storage                                  Labor wages

    Seed price                                          Donkey rental

    Market place rental                                 Sacks

    D. Cost components

    Components                                          Symbols

    Raw material (seed, fertilizer, etc.)


    Administration and selling costs (salary,
    rental, utilities, telephone)

    Other costs (transport of goods, containers
    and packages, etc.)

    E. Pricing components

Cost components + Profit

    F. Fixed and variable costs

Explanation                                            Symbol

Fixed costs are those ones that do not vary with the
produced quantity?

Variable costs are those ones that vary with the
produced quantity?

Session 3: selecting a partner

Time: 1.5 hours

Objectives: at the end of the session, the participants will be able to elaborate and apply criteria
for the selection of business partners and/or employees.


    1.    Motivate the participants by telling a local tell like “unity is strength” and ask them if this
         is true and to explain why they believe so. (10 min)
    2.   Ask them if everyone they meet could make a good partner and why? (10 min)
    3.   Group them into four and ask them to come up with: (20 min)
              a. at least 5 criteria for selecting a good partner, and
              b. 5 examples of a bad partner
    4.   Let each group display their findings (5 min each)
    5.   Ask them what their considerations were in choosing the criteria.
    6.   Did they consider own weaknesses as a basis for choosing complimentary criteria to fill
         their gaps through a partner?
    7.   Ask whether mere friendship would make good business partnership?
    8.   Ask what cautions should be taken when selecting a partner ( e.g. asking for information
         about the person, medical certificate where applicable, evidence for saving amount, etc)
    9.   Ask them what happens if they identify a weak partner?

Note to a facilitator

The following symbols of examples could be used as possible criteria for selecting a partner>

Criteria                                              Symbol






                            SESSIONS 4: SIMPLE BOOKKEEPING

Time: 3 hours

Objectives: at the end of this session the participants will be able to;

        1. Practice simple book keeping as a daily tool
        2. Do simple calculations with regard to their incomes and expenses.


   1. Explain that during this seminar, they will learn how to plan their finance better.
   2. Ask the participants what different income-generating activities they have performed in
      the last few weeks.
   3. Ask the participants how they have handled the financial aspect of their income
      generating activities they performed?
   4. Show two glasses, one filled with water, and the other empty. Tell them that the first
      glass represents income whereas the second expense
          a. Pour some water in the second glass, and ask the participants what happened to
              the first glass.
          b. Ask how this relates to their business transactions.
   5. Lead to Exercise Two: Buying and selling transaction
            Choose three, possibly active, participants for the exercise
            Distribute a fixed amount of candies for the selected participants, paper
             money to use it as a medium of exchange.
            Let the selected participants fix their prices, and play their roles as
             naturally as possible
            The 1st one will be selling candies in a small shop ,
             2nd one will buy candies for reselling, and the
            3rd one will buy candy for personal consumption.
            Let them conduct transactions for four times and ask the 2nd participant
             how she handled her financial record?
   6. Processing.
         a. Is this a good method of keeping financial records?
         b. Explain that they can use two envelopes of different colours, one for „Cash In‟,
            the other for “Cash Out‟ and find the balance in the business.
   7. Case Study: Read the case study slowly (see below)
         a. the facilitator
    One of the co-facilitators had 250 birr in the morning.
       She spent 20 birr for breakfast.
       She paid 10 birr for taxi.
       She bought food items for home with 30 birr.
Ask them
     What is the balance of her money?
     In which part should this amount be classified (in or out)?

            b. W/o Beletu’s Kolo Business
W/o Beletu prepares kolo for reselling. She buys raw materials from the local market. W/rt
Tayech on the other hand, buys the Kolo from W/ro Beletu and distributes it to supermarkets.
Both of them got their money from creditors.
W/ro Beletu started her business with a 500 birr capital, while W/rt Tayech started hers with
350 birr. W/ro Beletu is using no transport.
1st W/ro Beletu bought Sorghum for 200birr, peanuts for 50 birr, firewood for 100 BR, salt for 20
birr, and packing plastic for 30 birr. The total output is 23 pieces of packed kolo each weighing
1kg selling at 15 birr. She also produced 15 pieces of packed kolo containing ½ kg to be sold
at 7.50 BR.
W/rt Tayech buys 10 pieces each from both the half and 1kg packages prepared by W/ro
Beletu. She sold the ½ and one kg packed kolos for 10 and 20 birr respectively. She pays 20 Br
for transportation.
W/rt Tayech bought the remaining Kolo and sold to the supermarket with the same price as
What are W/ro Beletu‟s and W/rt Tayech‟s Expense & income?
What is their profit or loss?
                    -   Prepare Two boxes for W/ro Beletu and W/rt Tayech
                    -   Put the amount they received in the boxes
                    -   Do the above transaction buying & selling with the actual action of
                        drawing money from the boxes(
                    -   Count the remaining money and show to participants what happened to
                        their cash.

                       MODULE 7: CLOSING ACTIVITIES
General Objective: This part of the module will bring all the efforts made during the workshop
together, evaluate the workshop and take group photograph when the situation allows.

                                   SESSION 1: WRAP-UP

Time: 1 hour

Objectives: at the end of this session, participants will be able to capture overview of business


   1. Put the various processes, findings and learning points of the workshop on a flip chart by
      asking the participants and displaying your summary chart. (30 minutes)

   2. Refer to the leveled expectation which was posted on the wall on day one and go
      through each expectation you promised to fulfill fully and partially and ask the
      participants whether these were met. If there is doubt about the fulfillment of some,
      discuss the issue and encourage that the rest could be fulfilled through a subsequent
      business development service (BDS). (30 minutes)


Time: 30 minutes

Objective: at the end of this session, participants will be able to discuss that this whole effort of
the workshop was a landmark in their efforts to develop their own economic strength and that of
their country.


   1. Say a few words expressing happiness about the successful completion of the
      workshop. (5 minutes)

   2. Call upon the program‟s coordinators or the guest of honor to kindly come forward and
      handover certificate. (10 minutes)

   3. Ask the guest of honor to do the closing key note speech. (10 minutes)

   4. Conduct the final evaluation based on the daily smiley form Annex 4: Daily evaluation
      smiley form . (5 minutes)


                                               ANNEX1: PROGRAM GUIDE

Training Schedule for the ToT for PSNP+ Consortium Organisation staffs on BST and BDS.
Venue: Queen Sheba Hotel, Addis Ababa
Date: Aug. 26 – Sept. 3 2009
Day                                                        Time Break Down

                          10:00-                           12:00-                           15:00-                          17:00-
          8:30-10:00      10:30        10:30-12:00         13:30        13:30-15:00         15:30        15:30-17:00        19:30

                           Tea                              Lunch          Block C           Tea                            Coachin
           Block A        Break          Block B            Break                           Break           Block D            g

I     1.0 Opening                     Zip-zap-zop                      General Theory                   How do we
      and Related                     Common rules;                     of                                 learn(the
      Activities;                     Levelling of                      Adult Education;                  process of
                                       expectation                       Why adults                        learning)
         Registration                Course Briefing s                      learn?                      Experiential
          of                                                                                                learning for
          participants;                                                                                         Adults
         Opening                                                                                         Distribution
          Speech;                                                                                            of TOT
         Participants                                                                                       Assignment
          introduction,                                                                                      s to
Day                                                      Time Break Down

                          10:00-                         12:00-                           15:00-                      17:00-
          8:30-10:00      10:30          10:30-12:00     13:30          13:30-15:00       15:30        15:30-17:00    19:30

                           Tea                            Lunch           Block C          Tea                        Coachin
           Block A        Break            Block B        Break                           Break          Block D         g

                                                                                                         how they
                                                                                                         would be
                                                                                                         Evaluatio

II      Recapitulatio                     Strength                      Necklace                   Necklace
         n of previous                  detector                       production                    production
         day’s lessons                                                                               Cont;
      2.0 Developing                                                                                Evaluation

         Johari
III    Recap;                     3.0 IGA                         Environmental                   IGA
       To be or not To            Identification                   scanning                          Identificatio
       be (creative                                                                                   n
       problem solving)             Tower Building                                                 Picture
                                                                                                    Evaluation
IV      Recap;                    4. Planning &                      Strategic                     Personal
       Micro screening            Strategizing                       Response exercise              Time
                                        The best deal                                               Evaluation

Day                                                        Time Break Down

                          10:00-                           12:00-                            15:00-                      17:00-
         8:30-10:00       10:30        10:30-12:00         13:30        13:30-15:00          15:30     15:30-17:00       19:30

                           Tea                              Lunch          Block C            Tea                        Coachin
           Block A        Break           Block B           Break                            Break          Block D         g

V       Recap;                      Market room                      Marketing plan                 SCAMPER
        Market room                 simulation(continue                                               model
        simulation                   )                                                                  Evaluation
VI      Recap;                    5. Basics of                      Selecting partner                 Simple
       Production plan            Management                                                           bookkeeping
                                                                                                        Evaluation
                                    Risk management
                                    & Cash loan
VII    Recap;                     5.0 Facilitation of                 Needs                              Situation
       Project                    Business Brief                       assessment,                       analysis
        packaging                  Development                         action planning,                   Evaluation
        (completing a              Services                             and
        business plan                                                   delivery
        format)                       over view of BDS                 (implementation
                                                                        ) methodology

VII    Recap;                        BDS (BDS cycle)                 Monitoring and                   Assessment
I      Compilation                    briefing                         Reporting of                      of meeting
         of the                       Exercise BDS                     results of BDS                    of
         situation                     implementation                  Participants                      Expectation
         analysis                                                       design courses                    s;
       Preparation of                                                  outline for direct              Final
         the Action                                                     BST and BDS                       Evaluation;
         plan                                                           facilitation for               Certification
                                                                        experts                          and Closing


   Read the curriculum and prepare for the session beforehand.
   Prepare all materials and aids before starting the session. Searching for materials
    during the training session may reduce its effectiveness.
   Use all training materials in the right sequence. Improper use of the materials may
    diminish learning.
   Begin the session with some informal discussion about the participants' lives. This
    will allow the learner to think that you are one of them.
   Extract and base on participants experience as much as possible
   Be friendly, confident, easy and cheerful at all times.
   Keep the session in good humor. Consciously try to create a pleasant learning
   Don't cite examples related to any participant, as this may cause embarrassment.
   Avoid favoritism. Pay equal attention to all learners. Your function is to link the ideas
    of the participants.
   Be careful to ensure that everyone participates. All learners do not have the same
    ability and speed of learning. Some are more comfortable than others speaking up in
    a large group.
   Don't get excited if participants cannot easily answer a question. In such a situation,
    encourage them by complimenting them on what they know and not focusing on
    what they do not know.
   Follow the time schedule. But also respect learners' opinions, especially if they need
    more time.
   Believe in the creativity and worth of the participants. Let the learners speak more,
    practice more, and try more. Remember that the learner is the subject of all your
   A training curriculum is a guide that helps the facilitator identify an easy way of
    transferring certain knowledge, skills and attitudes to learners in order to achieve the
    predetermined objectives of the course. There is no need to follow the curriculum
    exactly. Make changes according to your circumstances and the proficiency of the
                       ANNEX 3: REGISTRATION FORMAT

S/N Name of participant Educational level Type of business     Address

                                                             Region Town

                     ANNEX 4: ATTENDANCE SHEET

S/N    Name                               Mark

                1M    1A   2M   2A   3M   3A   4M   4A   5M   5A   6M   6A


M = Morning

A = Afternoon
                       ANNEX 5: DAILY EVALUATION SMILEY FORM

                               Daily Evaluation Smiley Form
      C R I TE R I A                              M O O D R A TI N G

The market
assessment Approach

Lessons Learnt

Meeting of


Additional Remarks:

                               Daily Evaluation Smiley Form
      C R I TE R I A                              M O O D R A TI N G

The market
assessment Approach

Lessons Learnt

Meeting of


Additional Remarks:


S/N Description of materials and equipments                                Units of         Units

1.   Meta plan cards of different sizes and various shapes, markers,       ZOPP coffer      1
     glue, rulers, scissors, pencils, pens, push pins, stickers, masking
     tapes, staplers, staples, punchers

2.   Small balls for brainstorming                                         Pcs              5

3.   Flip chart papers                                                     Pages            50

4.   Printing papers                                                       Rim              1

5.   Lollypop & normal candy                                               Pack(one each)   2

6.   Others materials as needed


Adult learners are distinct from child learners. In adult training Andragogy (a theory of adult learning) is
usually used rather than pedagogy (a theory of child learning).The self-concept of a child is characterized
by dependency, whereas mature adults are self-directed and sufficient in most aspects of their lives.
Adults tend to resent trainers that fail to take this fact into account. They do not appreciate being talked
down to or having their autonomy restricted in ways that show a lack of respect. Since most learning
situations are pedagogical, or directed at children, adults often enter training with expectations that they
will be treated like children with explicit guidance at each step. When they eventually discover that they
are capable of directing their own learning.

In pedagogical learning, teachers decide the content to be delivered to students as well as how and when
the teaching is to take place. Adults on the other hand, begin new learning ventures with some ideas of
what they will gain from doing so. Trainers often assume the teacher's role and decide for the adult what
he/she needs to know. The drawback to this approach is that the trainee is apt to resist. A cooperative
spirit in adult learning is important because it allows for the sharing of useful knowledge and skills adults
bring with them to a new learning situation.

Children’s classroom activities are characterized by modes of one-way communication, lectures, assigned
readings and audio-visual presentations. By contrast, the past experience of adult learners is central to
adult learning, so activities such as discussion, role playing, and skills-practice are designed which use
that experience as a foundation for further learning. Adult learning is based on the principle that all
experience contributes to a learning process that does not end with the closure of a training event, but
continues throughout one's adult life. Whereas pedagogy involves grouping and classifying information
into subjects to be studied now for use "someday", adult education promotes learning by working on
today's problems today.

Generally, learning theories are the basic materials which are usually applied in all educational and
training activities. The more one understands learning theories, the better he or she will be able to make
decisions and apply them to achieving the objectives.

Therefore, a training program has a better chance of success when its methods are carefully selected. A
training method is a strategy or tactic that a trainer uses to deliver the content so that the trainees achieve
the objective. Selecting an appropriate training method is perhaps the most important step in training
activity. There are many training methods, but not all of these are equally suitable for all topics and
various group of the society. In the context of this literature adults are the primary target therefore, to
achieve the training objective, a trainer should select the most appropriate training method for adults to
involve the trainees in the learning process. The training mated should:

        1. Allow active participation of the learners.
        2. Help the learners transfer learning experiences.
        3. Provide the learners with knowledge of results about their attempts to improve.
        4. Provide some means for the learners to be reinforced for the appropriate behaviors.
        5. Provide the learners with an opportunity to practice and to repeat when needed.
        6. Motivate the learners to improve their own performance.
        7. Help learners increase their willingness to change.

These indicate that a single training method will not satisfy the objectives of adult training program.
People learn by hearing, seeing, tasting, smelling, discussing, doing; The more farmers actively
participate in training, the more two-way communication will take place.

Questions like does the training method relate to a farmer's own experience? Is the language used free of
unnecessary technical terms and abstractions? Is the tone of the presentation respectful and pleasant? Is
the audience comfortable (temperature, seating, visibility, hearing range, etc)? Is the presentation well
rehearsed and organized? Are materials locally available and conveniently placed? Is a mechanism in
place to make sure the desired message was conveyed in the presentation? Are some questions the
facilitator consider before launching the training.

A variety of training methods are available to a facilitator. In addition to group discussion, the following
are most appropriate participatory adult training methods:

     Storytelling
     Analogy
     Proverbs, parables (colloquialisms)
     Skits
     Role plays
     Song and dance
     Visual aids such as
            -   Models
            -   Photos
            -   Puppets
            -   Drawings
            -   Posters
            -   Flannel boards
            -   Flash cards
            -   Flipcharts
            -   Games, puzzles
In addition exploratory technique like assignment and field visit are the most important to reinforce class-
room learning.

As a rule, when adult individuals attend educational courses, they already possess individually
proven and relatively established mechanisms with which to deal with private and professional life
situations. As long as the information being supplied to these individuals is 'neutral' (e.g. a foreign
language), these strategies and instruments will be far from obvious. However, if you as a trainer
were to point out that an entrepreneur has to plan his marketing activities in advance, for
example, you would encounter resistance if some of the participants were entrepreneurs who
usually made their decisions ad hoc and were of the opinion that this method had proven
itself successful. We have to expect such resistance because our strategies collide with those
of the corresponding participants. As trainers, we are easily tempted in such situations to
assume that adult learners are less able to learn. Yet a refusal or obvious "non-learning" from such
individuals generally has nothing whatsoever to do with the ability to learn, rather much more with
the protection of their own strategies and thereby of their own personality.

For you as a trainer, the goal is to break through the participants' protective wall. You might
accomplish this, for example, by designing specifically-targeted problem situations in which

the participants are forced to take a critical look at their own strategies. you should create as many
such situations as possible. This occurs via the so-called "participant-activating" methods:
Within the framework of these methods a participant is presented with a problem, and he has to
deal with this problem actively. The experience from this action is then jointly reflected upon in
the group. For this reason we call this learning "experiential learning". In the course of many years
in which this approach has been proven and further developed in CEFE courses all over the
world, a very special method of action has been developed which is reflected in the structure of
the exercises. This will hereafter be referred to as the experiential learning cycle.



                        Generalizing                            Processing

                              The experiential learning cycle (ELC)

Learning style test in accordance with Kolb (1976)
Below you will find nine lines with four terms on each. Read the four terms on each line and put
these terms into order: give 4 points to the term which best describes your learning style and
then give 3, 2 and 1 points to the other terms in descending order. The term which worst describes
your learning style is awarded 1 point. The points 4 - 1 may only be awarded once on each line.

You will probably find it difficult to choose the term which best characterises your learning style. Try
and do the best you can. The goal of this test is to describe how you learn and not to evaluate your
learning capability
   CE (2,3,4,5,7,8)               RO (1,3,6,7,8,9)      AC (2,3,4,5,8,9)         AE (1,3,6,7,8,9)

    1.   differentiating          trying out             committed               practical

    2.   taking up ideas          meaningful             analytical              objective

    3.   feeling                  observing              thoughtful              active

    4.   agreeing                 like taking risks      examining               conscious

    5.   empathic                 productive             logical                 questioning

    6.   abstract                 considering            set                     active

    7.                            thoughtful             future-oriented         pragmatic
         related to the present

    8.   experience               observation            plan/outline            experimental

    9.   intensive                reserved               rational                responsible

To evaluate:

Now vertically add the scores in each column, but only the scores of the lines in that column
(i.e. for the column CE the scores for the words differentiating, abstract and intensive are not taken
into consideration).

You get a score for each column. Each column characterizes a learning style. The highest point
score indicates your preferred learning style.

Distinctions are made between the following learning styles: Adults are generally masters of
several learning styles. A learning type can now be determined in accordance with

       Concrete Experience (CE) = being involved in a new experience; experience-oriented, by
        feeling, social, empirical, exemplary from a casuistic viewpoint.

               o   Abstract Conceptualization (AC) = creating theories to explain observations;
                   analytical, logical, examining rationally, systematic, theoretical, structured,

       Active Experimentation (AE) = using theories to solve problems; active, systematic,
        trying out, project-oriented, working in small groups, extroverted.

       Reflective Observation (RO) = watching others or developing observations about one's
        own experience; careful perception, objectively collecting data, introverted, thoughtful,
        distant, appraising.

Adults are generally masters of several learning styles. A learning type can now be
determined in accordance with Kolb's idea by subtracting two learning styles from one

Make two scores from the numbers calculated above:

a) the score for AE minus the score for RO

b) the score for AC minus the score for CE

The results from a) and b) can be positive or negative. The two scores are drawn on the axes
of the following chart and form the co-ordinates for one point. Depending on the result, this point lies
within one of the quadrants.

                        Accommodator                       -7
                        17 15 13 12 11 10 9 8 7 6 5 4 3    3
                                                      4    2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -11
                          Convergers                  7
                                                      9                Assimilators

The various learning types:

•  Assimilator, who tends to integrate new tasks and information into the view of the world which he
already has.

• Accommodator, who is prepared to be flexible and adapt to new situations and to correct his
method of interpreting.

•  Diverger, who prefers divergent, i.e. prefers unusual, selfwilled (although not always
"successful") thought.

•   Converger, who has an effective, tried and tested pattern for solving problems.

Kolb's test is relatively old. It has the disadvantage of being based exclusively on self-
evaluation, although it has proven itself in practice. There are other tests on this subject, some of
which can be found on the Internet or found out about from the Internet. In addition to the tests, there
are also general treatises.

For you as a trainer, tests on learning styles and learning types can have several advantages.

•  If every learner recognizes which type he tends to belong to, the efficiency of the seminar can
increase because the participants are able to formulate their requirements more clearly.

• In the seminar you can emphasise appropriate points in processing, for example, when you
know which proportion of your participants belong to each group. Imagine that most of your
course participants are assimilators.

                            ANNEX: 8 COST CATEGORIZATION

The first step in finding out the income from an IGA is proper categorization of the costs. There are
two basic categories of costs: Start-up Costs and Working Costs1.

Start-up costs: Are incurred only once - before starting up the activity - or very infrequently.
                Examples of costs that are incurred only once are pieces of equipment, which can
                be used for a long time. Costs that are incurred only occasionally include tools
                and other items that last for more than one production cycle, but that do not last
                for many years.

Working costs: Are incurred during each production cycle. These costs vary with the level of
               production. Examples are raw materials and other inputs.

The working costs turn over, or revolve, from one production cycle to the next. Raw materials and
other inputs are transformed into products that are sold, and some of the money earned from the
sale must be used to purchase new inputs. Thus, it is essential to know the amount of money
required for the working costs, and to deduct it from total sales before using the remainder to pay
personal expenses.

Income is defined as the money available for personal use after the working costs have been
subtracted from the sales value of all the products and by-products.2

This session shows the participants how to categorize the costs of their IGAs and calculate the
income that can be earned from them. A later session on management will teach them how to keep
the working costs separate from the money that is available for personal expenditure.

The trainer starts this session by reviewing this concept below.

All the family‟s IGAs, rather than just the IGA that the participant is intending to start-up.

Thinking about the amount of money that the family needs to start up and operate all its economic
activities is the fourth important point. The IGA that is started up as a result of this training should
not be thought about in isolation from the other income flows within the family. Any shortage of

    Working Costs included both Fixed Costs and Variable Costs. These two categories have been combined
to reduce the complexity of the analysis for non-literate participants.
 2 This simple method for calculating income does not take account of depreciation of the
fixed assets of the IGA. The need to set money aside for equipment replacement is
introduced later in the training course, under the section on savings.

money in a family IGA may lead to diversion of funds away from the participant's activity to one that
is operated by another member of the family. So the fourth important point is the capital
requirement: How much money does the family need to start-up and operate all its IGAs? Where
will we obtain these funds?

Poor people obtain their required money from various sources: Their own savings (in cash or in
assets), savings and loan associations (SLA/CSSG), relatives, local money lenders or NGOs. One
source may not supply the total amount of money required for all the family's IGAs. This session
calls upon participants‟ previous experience with SLA as a means of mobilizing savings for capital
formation or meeting unforeseen expenditures. Before obtaining money from any source,
participants should think carefully about their total capital requirement. Sometimes available funds
are almost fully expended on start-up costs, leaving insufficient funds for paying working costs. In
this case, the production and thus income from the IGA may not be sufficient to repay loans that
have been taken. The participant may be worse off rather than better off after starting up the IGA.
Thus, accurate calculation of both start-up costs and working costs is essential for all the family‟s
IGAs. The total then needs to be compared to the amount of capital available to determine if it will
be enough. The need to calculate the funds required for all family activities should be fully
discussed during the session, with reference to all the points mentioned above.

Here we introduce the fifth important point that needs to be considered before selecting an IGA:
Does the family need income from the participant‟s IGA to cover weekly household expenses or to
help cover expenses that occur occasionally? The participant's answer to this question will affect
his or her choice of IGA. If income is needed to pay weekly family expenses, then an IGA should
be selected that gives a return on a daily or weekly basis. If, on the other hand, other family
members earn regularly and this income is supplementary, an IGA with irregular earnings may be

Most rural families have income that ebbs and flows according to the employment and other
income earning opportunities that are available each season. One key point that the trainer should
stress relates to switching from one IGA to another as a result of seasonal swings in demand: A
participant should never switch IGAs until s/he has carefully considered all the five
important points. Indeed, this is the fundamental message that all participants should carry away
from the training course. If they remember and use the five important points before starting up any
IGA, then their decisions will be well thought out, and their IGAs will be more likely to succeed.

Step 3 has two exercises in which participants individually calculate their weekly household
expenses and weekly household income. Obviously, income flows within the household are much
more complicated than this simple analysis would suggest. There are many expenses which must
be made on an occasional basis and there are also many income sources which are longer term in
nature. In addition, most activities are seasonal. Dealing with all these complexities requires a
much more sophisticated level of analysis than is possible during the training. The goal of the
training is to present ideas that the participants will be able to think about and use for decision
making purposes.

Thus, the fifth important point does not relate to total family income or total family expenses,
although these are of course important. It instead asks participants to think about their needs for
short-term income, and based on this finding, to select an IGA that is appropriate. This focus is
based on the observation that many people fail in their IGAs because they are forced to use money
that should be used to cover working costs to pay weekly household expenses.


 Nickname      Symbol     Day 1     Day 2     Day 3     Day 4     Day 5     Day 6     Day 7     Day 8    Day 9    Day 10   Day 11   Total

Note, the symbols are already prepared on 5 x 5 cm papers so that they can be easily transferred on this chart.
Place names and symbols according to the sitting order during the participants‟ presentation.


           Exercise:                            Date:   Facilitators       personal observation           (max
                          Time:                (Time
           planned:                 )

Area                      Aspect                          1    2   3   4   5   6   7   8   9   10   observations
communication             non verbal
                          communication, body
                          language, tonality

                          expression, clarity,
                          questioning technique
content                   expertise and
material                  preparation, creativity,

action                    start, motivation,
                          rules explanation

                          activity control and

Publishing                results

processing                get it from participants

generalising              link to processing
                          lessons learnt achieved

group                     involvement,
                          participation level
                          result documentation

time                      management, efficiency

team work                 cooperation + support

           General Observations:


P S N P -P L U S P ro je c t a re a


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