August

2009

Business Skill TOT Manual

PSNP PLUS Project
Linking Poor Rural Households to Microfinance and
Markets

To facilitate application of
fundamental concepts and
principles for enhancement of
Income Generating Activities
(IGAs).

Consultant: BCaD-Consulting Managemen

This manual was prepared under the USAID funded project PSNP Plus, RFA 663-A-08-15. The views and
recommendations expressed in this report are those of the authors and do not necessarily represent those of USAID.

TABLE OF CONTENTS
TABLE OF CONTENTS .............................................................................................................................. 1
INTRODUCTION .......................................................................................................................................... 4
OBJECTIVE .................................................................................................................................................. 5
DEVELOPMENT METHODOLOGY .................................................................................................................. 5
TRAINING METHODS ................................................................................................................................... 6
MODULE 1: OPENING AND RELATED ACTIVITIES ........................................................................... 7
SESSION 0: REGISTRATION .......................................................................................................................... 7
SESSION 1: WELCOME ADDRESS .................................................................................................................. 7
SESSION 2: OFFICIAL OPENING .................................................................................................................... 7
SESSION 3: PARTICIPANT INTRODUCTION.................................................................................................. 8
Pair introduction: .................................................................................................................................. 8
SESSION 4: COURSE BRIEFING...................................................................................................................... 8
SESSION 5: LEVELING OF EXPECTATIONS..................................................................................................... 8
SESSION 6: SET COMMON RULES ............................................................................................................ 10
SESSION 7: SYMBOLS AND NICK NAMES .................................................................................................... 11
MODULE 2 DEVELOPING ENTREPRENEURIAL COMPETENCIES.............................................. 13
SESSION 1: JOHARI W INDOW ................................................................................................................... 13
SESSION 2: TO BE OR NOT TO BE ............................................................................................................. 16
SESSION 3: STRENGTH DETECTOR .......................................................................................................... 19
SESSION 4: NECKLACE PRODUCTION ...................................................................................................... 21
MODULE 4: SELECTING IGA ................................................................................................................. 26
SESSION 1: IGA IDENTIFICATION ............................................................................................................. 27
SESSION 2: PICTURE ASSOCIATION ......................................................................................................... 29
SESSION 3: MICRO SCREENING ............................................................................................................... 31
SESSION 4: ENVIRONMENTAL SCANNING ................................................................................................. 35
SESSION 5: TOWER BUILDING.................................................................................................................. 39
SESSION 6: CALENDAR ............................................................................................................................. 43
MODULE 5: PLANNING IGA AND STRATEGIZING .......................................................................... 51
SESSION 1: MARKET ROOM SIMULATION (4 PS) ......................................................................................... 51
SESSION 2: MARKETING PLAN ................................................................................................................... 56
SESSION 3: PRODUCTION PLAN ............................................................................................................. 58
SESSION 4: FINANCIAL PLAN .................................................................................................................. 60
SESSION 5: THE BEST DEAL .................................................................................................................... 64
SESSION 6: STRATEGIC RESPONSE EXERCISE ....................................................................................... 66
SESSION 7: PERSONAL TIME MANAGEMENT ............................................................................................ 71
SESSION 8: SCAMPER MODEL ................................................................................................................. 74
MODULE 6: BASICS OF BUSINESS MANAGEMENT ...................................................................... 76
SESSION 1: RISK MANAGMENT .................................................................................................................. 76
SESSION 2: PRODUCTION AND COSTING ..................................................................................................... 81
SESSION 3: SELECTING A PARTNER ............................................................................................................ 84
SESSIONS 4: SIMPLE BOOKKEEPING ........................................................................................................... 85
MODULE 7: CLOSING ACTIVITIES ...................................................................................................... 87
SESSION 1: W RAP-UP .............................................................................................................................. 87
SESSION 2: CLOSING AND AWARD OF CERTIFICATE ................................................................................ 87
ANNEXS ...................................................................................................................................................... 88

ANNEX1: PROGRAM GUIDE ........................................................................................................................ 88

ANNEX 2: GUIDELINES FOR THE FACILITATOR .............................................................................. 91
ANNEX 3: REGISTRATION FORMAT ............................................................................................................ 92
ANNEX 4: ATTENDANCE SHEET ................................................................................................................. 93
ANNEX 5: DAILY EVALUATION SMILEY FORM ........................................................................................... 94
ANNEX 6: LISTS OF MATERIALS AND EQUIPMENTS.................................................................................... 95
ANNEX 7: ADULT LEARNING AND TRAINING METHODS ............................................................................. 96
ANNEX: 8 COST CATEGORIZATION ........................................................................................................ 102
NNEX 9 : NAME CHART ............................................................................................................................ 105
ANNEX 10: PARTICIPANTS FACILITATION EVALUATUING CHART ............................................................ 106
ANNEX 11: PSNP+ PROJECT OPERATION AREA ......................................................................................... 107

INTRODUCTION

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 SaveUK, 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).

OBJECTIVE
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)
Action/Experience

Application

Generalizing

Publishing

Processing

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

MODULE 1: OPENING AND RELATED

ACTIVITIES
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, etc.

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 preparation.
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 shouldnt take more than 10 minutes.

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.

SESSION 3: PARTICIPANT INTRODUCTION

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 other.
Instruction: (3 minutes for explaining instruction)
1. Each participant pairs up in 2 minutes with a co-participant whom s/he
doesnt 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 participants

SESSION 4: COURSE BRIEFING

Time: 30 minutes
Objective: at the end of the briefing, participants will be enabled to capture
BSTs 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.

SESSION 5: LEVELING OF EXPECTATIONS

Time: 30 minutes
Objectives:
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.
Steps:
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 mightnt 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.
Instruction:
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 isnt any objection and the rule doesnt 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.
Steps:
(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 clothes.
(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 contribution.
The set of symbols should be placed next to the ZOPP boards throughout the
training program.
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

MODULE 2 DEVELOPING ENTREPRENEURIAL

COMPETENCIES
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 accordingly.

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.
Steps
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 min.
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 min)
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 quadrant.
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 business..
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 dont 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

Known by others

Unknown by others

Unknown by me

Public Area

Blind Area

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.
Steps
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 Mothers 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
problem
Success

Failure

Clear understanding
of problem

Evaluation
Information
seeking

Creativity
Action

Definition of
objectives

Allocation of
resources

Elaboration of
strategies

Note to the facilitator:

A. Display the following instruction on a flip chart with using symbols and
reading aloud once or twice only. Dont 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.
Rules:
1. Every participant has to change at the Mothers 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 Mothers shop written on it
optional: a second sign with Fathers Shop written on it
chart: problem solving cycle (see above), also to be
distributed as hand-out

Materials for the trainers

(during the exercise)

sweets of 3 different colours easy to be distinguished (for a

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 Mathers Shop chart
fixed in front
optional: 2 tables for the second round with lollipops and
sweets on them (the second chart should say Fathers
Shop)

Materials for the

participants (during the
exercise)

2 sweets of one single colour for each participant (sweets of 3

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 ones own competencies and strengths;
2. Understand the need to exploit ones own strengths in setting up any
business.
Steps
1. Introduce to the subject by mentioning the need to identify ones 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 chart

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
entrepreneurs.

Note to the Facilitator:

Display the following competency areas to help the participants detect theirs
by choosing.
Competencies
Money in bank
Land
Houses
Reading / writing
Cooking
Other languages than mother tongue

Symbols

Singing
Dancing
Playing instruments
Gardening
Rearing animals
Tailoring
Basket weaving
Net making
Drawing
Group leading
Information seeking
Rickshaw pulling
Pottery
Shoe repairing
Farming
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.

SESSION 4: NECKLACE PRODUCTION

Time: 2.50 hours
Objectives:
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).
Steps
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 (cofacilitators). 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 ones labour, subcontracting, etc. How did they perform in terms of total income
achieved? Reasons? Did it pay off? Side-businesses or subcontracting 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 Symbol)
PEC

Situation

information
seeking

- about nylon thread or needle,

opportunity
seeking

- buying a needle or a nylon

thread after having heard
about their existence on the
market

Symbol

- about buyers process of quality

control

- going outside the training hall where

the lighting conditions are better
may be better, etc.
persistence
demand for
quality and
efficiency

in convincing the buyer (optional)

- the total number of necklaces
committed has been sold be
cause the quality instructions
have been followed
- all necklaces have been accepted as
first quality

goal setting

commitments

systematic
planning

- arranging the pearls on the

working surface
- copying the sample, numbering of
pearls
- Division of labour among group
members
- 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 ones progress. This is to say that, If I dont know
where I want to go to (the goal) I can never be sure if Im 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 participant:

Hidden somewhere inside

the classroom or with
assistants/ co- facilitators:

Scissors,(at least some to serve a group of

participants)

Plastic bags ( or cups or any other container)

for each group

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)

Needles, rulers, better quality thread (eg: if it is

possible nylon thread which is good for the threading
pearls).

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
Name

Symbol Commitment Other

costs

Total
costs

1st
Quality
sales

2nd
Quality
sales

Other Total
sales

Total
Income

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
important points

THE

FACILITATOR:

The

Five

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
perception.
There are FIVE IMPORTANT POINTS, which should be considered before startup of an IGA. The participants can add on the five. These are:
SKILLS AND KNOWLEDGE:
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

IGA?
How much money do I need to start & operate the
IGAs?

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.

SESSION 1: IGA IDENTIFICATION

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
activities.
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
idea.

(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
account.
Caution: The task might be too abstract for some participants. Those
participants without any prior experience in income generating activities dont
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
ones.
Participants without any business experience are asked to imagine possible
and promising businesses while taking the above mentioned criteria into
account.

If they dont want to share their ideas with others, dont 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.

SESSION 2: PICTURE ASSOCIATION

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
Steps
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
groups
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
experiences.
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.
Time:45min
Objective
Participants
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 direction 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 cant 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 dont 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 its 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

good or service

demand

Availability Availability Availability

of raw
of Financial
of Skill
material
resource

TOTAL

(=)

(+)

(+)

(+)

Competitor
s

Corrected

(-)

(=)

TOTAL

(+)

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

Critical success
factors

SESSION 4: ENVIRONMENTAL SCANNING

This is to assess all external factors that can affect the selected IGA
implementation.
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
environmentally important factors

improve

relationship

with

these

Steps
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
individuals 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.
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.

4.

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).

Processing:
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?

36

Suppliers: if there is a break-down of supply the business

will die

Competitors: if they become stronger, the businesss

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
ones 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). Lets not hesitate even to spend some money in order to get
these information (transport costs, buy a competitors 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 wellknown 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.
Requirements:

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

37

Setting:

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

Competitors

Tax
Authority

Family

Clients
MY SELF

Supplier
B

Friends

Supplier A

Money
lender

38

Micro
finance
Institute

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 entrepreneurs conception that assumes moderate and
calculated risks.
Steps
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 entrepreneuractors)
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
39

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?
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?
f.

0
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

participants (during the
exercise)

25 to 30 wooden cubes (or small and regulars matchboxes if

cubes are not available) for each entrepreneur (if they play at
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 entrepreneurs 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
towers 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.

40

2.

For the bankers 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 towers 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 sisters 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 friends 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 towers base is made by one single box. The
capital is composed of your friends 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.
41

Due to this situation, you are highly interested that your friends 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.
B.

ADDITIONAL INSTRUCTION INFORMATION FOR THE TASK

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
building;
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
cubes/matchboxes that the tower will have (goals);

the

number

of

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.
COMMENTS:
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.

42

C.

TABLE OF RESULTS

Explain the table by drawing match boxes

Goals
1st
entrepreneur

Accomplishments

Profits

1st round

2nd round
2nd
entrepreneur

1st round

2nd round

COMMENTS:
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).

43

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.
Steps

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
44

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
groups "specialist") are encountered, then the respective
persons holding this months 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 cofacilitator transfers the individual score (1 point) to the scoring table
continued tick mark method for a better visualisation). Another cofacilitator 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.
45

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
timing.
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
opportunities.)
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
46

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 prices),
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 others 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.

2.
3.

4.

5.

6.

7.

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.).
Participants sit on the ground during the starting phase of the
exercise.
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
points.
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.
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.
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.
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.

47

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 participants rapidly repeat their respective sales prices (for each
month) to visualise the sales price fluctuations.

48

D. Estimated sales price per month and product CHART

Product

10

11

12

E. Calendar scoring table

Name

Symbol

Rd. 1

Rd. 2

Rd. 3

Rd. 4

Rd. 5

Total

MODULE 5: PLANNING IGA AND STRATEGIZING

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
promotion.
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.

Steps
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

51

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.
2.
3.
4.

Show them the products to be sold.

Explain only their role in the exercise by referring to the specific roles described below.
Motivate them to implement a promotions strategy that results in profit.
Select and brief the fifth seller individually about the role she will play: First she will
observe and, then enter the market; other seller shouldnt 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 wouldnt
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.
52

B. Requirements
Trainers/assistants

1 facilitator, 2 assistants

Didactic aids to prepare

Pictures illustrating the 4Ps (see below)

Materials for the trainers

(during the exercise)

General briefing for sellers (see below)

5 Sellers order form (see below)
General briefing for buyers (see below)

Materials for the

participants (during the
exercise)

Ample low price marketable products of two different

qualities (i.e. candies and lollipops) example: 1 kilo of both
products
Table and chairs,
Flip chart stand/soft board
Banners, pictures, or any other substitutes

Important conditions of the

room

An additional room for the buyers is needed.

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 2(HQ/HP)

Seller 4 (HQ/LP)

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 facilitators 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.
53

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
below:
High quality/High price
High quality/Low price
Low quality/High price
Low quality/Low price

(HQ/HP)
(HQ/LP)
(LQ/HP)
(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
54

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)

IN ORDER TO PROCESS THE EXERCISE, WE WILL REQUIRE YOU TO BUY AT LEAST

ONCE IN EACH ROUND. THIS IS VERY IMPORTANT!
4 Ps illustrated with symbols
Product

Price

Place

Promotion

55

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
Products

What product or products do I want to produce?

Are my product necessities or luxuries?

Are they familiar to the people or new?

Buyers

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?
Sellers

Are there any other sellers of the same products in the area I want to serve? How many?
56

 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?
Generalizing
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.

57

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

Steps
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
to.
Starting

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
58

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?

Labor

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?

Other

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.

59

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
OPERATE MY FAMILY'S IGAs?

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 familys 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 familys 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.
This session also introduces the fifth important point that needs to be considered before
selecting an IGA: Does the family need income from the participants 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.
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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 ABDELAS 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 fathers 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
sons 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
61

he has taught him is to think about all the familys 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.
Example

Interest
rate

Easy to get/
Access

Duration
Score
for paying
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
62

Rating

Note: You can have more than the three columns depending on what conditions the participants
rise.
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 MFIs 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 Banks, a loan in default must be repaid by the other members of the
group.
Loans from a revolving fund.

Using own savings is less risky than using loans.

63

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.
2.
3.

Develop group strategies for tackling a competitive situation,

Evaluate formulated strategies in competition with others
Improve their choice of strategies of co-operation and competition

4.

develop competencies for business negotiations

Steps
1.
2.
3.
4.
5.

Motivate the participants for engaging themselves in this game; (5 min)

Explains the general instruction of the exercise for the whole class; (5 min)
Allow participants develop their group strategies; (10 min.)
participants execute their respective strategies trying to fulfil their tasks; (5 min)
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.
c.
d.
e.

Did they assign different tasks to the group members?

Did they prepare a way to find out the tasks and resources of the competitors?
Did they choose for a competitive or co-operative strategy? Why?
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
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A. Requirements
Trainers/assistants

1 trainer, 1 assistant

Materials for the trainers

(during the exercise)

paper and pen to take notes of the groups discussion and

other observations for processing

Materials for the

participants (during the
exercise)

- 4 plastic or card made buonos from each of the 4 different

colour (i.e. 4x4=16 buonos) per group wrapped up in paper
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
envelopes.
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
trainer.
Group C: you have to prevent group A from fulfilling the task

65

SESSION 6: STRATEGIC RESPONSE EXERCISE

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.
Steps:
1. Ask the participants what one should do if they are encountering problems in business (5
min)
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.
each)
7. Ask each of the two volunteers to respond to the following questions turn by turn (5 min
each)
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)
66

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
successfully?
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.

67

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.
ADAPTING
-

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.

COMPLEMENTING
-

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.

RE-SHAPING
-

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
favour.
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

68

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
3. FOR VOLUNTEER 2
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
69

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 volunteers strategy?

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

70

SESSION 7: PERSONAL TIME MANAGEMENT

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 ones most precious asset:
time
4. discover how to balance job schedule with personal life
Steps:
1. Ask the participants to carefully listen to the case study below and respond to the
question.
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?

71

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 wasnt 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
enough?

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.

72

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 wouldnt be
accomplished, that wouldnt hamper our progress to our goal.

73

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;
Steps
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)
74

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
obstacles?
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

Substitute
Combine
Amplify
Minify
Put to other use
Eliminate
Rearrange
Conclude the session by reviewing the learning. Then move to the course closing.

75

MODULE 6: BASICS OF BUSINESS MANAGEMENT

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
causes.
Time 1:30 min
Objective:
Explain the importance of managing the cash that flows into the IGA from the sale of
products.
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
SITUATION: WHAT ARE THE PROBLEMS IN Workneshs SHOP?
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 MFIs Loans officer. She said
that she needed another loan so that she could restock the shop. But the extension agent was
76

confused. He wondered why Worknesh needed a loan when she was apparently making a good
profit.
* * *
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
IGAs.5min
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
77

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 Workneshs
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.
78

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 Workneshs 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
power.
Workneshs 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 Workneshs 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).
79

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.

80

SESSION 2: PRODUCTION AND COSTING

Time: 3 hours
Objectives: at the end of this session, the women will be able to;
1.
2.
3.

identify the different costs involved in an income generating activity

differentiate between fixed and variable costs and can classify the various costs
calculate the cost per unit

Steps
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 Fatumas 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 Fatumas 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)
81

B. Fatumas Case study and figurines

Story
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.

Figurines
Fatuma
Peanut
Market
5 quintals
Ploughman
Weeding
Harvesting
Loading on Donkey

82

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.)

Labor
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?

83

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.
Steps
1.
2.
3.

4.
5.
6.
7.
8.
9.

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)
Ask them if everyone they meet could make a good partner and why? (10 min)
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
Let each group display their findings (5 min each)
Ask them what their considerations were in choosing the criteria.
Did they consider own weaknesses as a basis for choosing complimentary criteria to fill
their gaps through a partner?
Ask whether mere friendship would make good business partnership?
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)
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

Healthy
Saving
Honesty
Commitment
Hardworking

84

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.
Steps
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.

85

Ask them
What is the balance of her money?
In which part should this amount be classified (in or out)?
b. W/o Beletus 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 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 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
above.
What are W/ro Beletus and W/rt Tayechs Expense & income?
What is their profit or loss?
Answering
-

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.

86

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
management.
Steps
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)

SESSION 2: CLOSING AND AWARD OF CERTIFICATE

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.
Steps.
1. Say a few words expressing happiness about the successful completion of the workshop.
(5 minutes)
2. Call upon the programs 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)

87

ANNEXS
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

8:30-10:00

10:0010:30

Block A

Tea
Break

1.0 Opening
and Related
Activities;

Registration
of
participants;
Opening
Speech;
Participants
introduction,

10:30-12:00

12:0013:30

Block B

Lunch
Break

Zip-zap-zop
Common rules;
Levelling of
expectation
Course Briefing s

13:30-15:00
Block C

General Theory
of
Adult Education;
Why adults
learn?

15:0015:30
Tea
Break

15:30-17:00

17:0019:30

Block D

Coachin
g

How do we
learn(the
process of
learning)
Experiential
learning for
Adults
Distribution
of TOT
Assignment
s to
participants
&
explanation
how they

Day

Time Break Down

8:30-10:00

10:0010:30

10:30-12:00

12:0013:30

Block A

Tea
Break

Block B

Lunch
Break

13:30-15:00
Block C

15:0015:30

15:30-17:00

17:0019:30

Tea
Break

Block D

Coachin
g

II

Recapitulatio
n of previous
days lessons
2.0 Developing
Entrepreneurial
Competencies

Strength
detector

Necklace
production

Necklace
production
Cont;
Evaluation

III

IV

Johari
window
Recap;
To be or not To
be (creative
problem solving)

would be
evaluated.
Evaluatio

Recap;
Micro screening

3.0 IGA
Identification

Environmental
scanning

Tower Building

4. Planning &
Strategizing

The best deal

89

Strategic
Response exercise

IGA
Identificatio
n
Picture
association
Evaluation
Personal
Time
Management
Evaluation

Day

VI

VII

VII
I

Time Break Down

8:30-10:00

10:0010:30

10:30-12:00

12:0013:30

Block A

Tea
Break

Block B

Lunch
Break

Recap;
Market room
simulation
Recap;
Production plan

Recap;
Project
packaging
(completing a
business plan
format)
Recap;
Compilation
of the
situation
analysis
Preparation of
the Action
plan

Market room
simulation(continue
)
5. Basics of
Management

Block C

Marketing plan

Selecting partner

Risk management
& Cash loan
5.0 Facilitation of
Business Brief
Development
Services

13:30-15:00

over view of BDS

BDS (BDS cycle)
briefing
Exercise BDS
implementation

90

15:0015:30

15:30-17:00

17:0019:30

Tea
Break

Block D

Coachin
g

SCAMPER
model
Evaluation
Simple
bookkeeping
Evaluation

Needs
assessment,
action planning,
and
delivery
(implementation
) methodology
Monitoring and
Reporting of
results of BDS
Participants
design courses
outline for direct
BST and BDS
facilitation for
experts

Situation
analysis
Evaluation

Assessment
of meeting
of
Expectation
s;
Final
Evaluation;
Certification
and Closing

ANNEX 2: GUIDELINES FOR THE FACILITATOR

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
environment.
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
efforts.
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
participants.

ANNEX 3: REGISTRATION FORMAT

S/N Name of participant Educational level Type of business

Address
Region Town

92

ANNEX 4: ATTENDANCE SHEET

S/N

Name

Mark
1M

Key:
M = Morning
A = Afternoon

1A

2M

2A

3M

3A

4M

4A

5M

5A

6M

6A

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
Expectations
Logistics
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
Expectations
Logistics
Additional Remarks:

94

ANNEX 6: LISTS OF MATERIALS AND EQUIPMENTS

S/N Description of materials and equipments

Units of
measurement

Units

1.

Meta plan cards of different sizes and various shapes, markers,

glue, rulers, scissors, pencils, pens, push pins, stickers, masking
tapes, staplers, staples, punchers

ZOPP coffer

2.

Small balls for brainstorming

Pcs

3.

Flip chart papers

Pages

50

4.

Printing papers

Rim

5.

Lollypop & normal candy

Pack(one each)

6.

Others materials as needed

95

ANNEX 7: ADULT LEARNING AND TRAINING METHODS

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.
Childrens 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.
96

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 classroom 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

97

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.

Action/Experience

Application

Generalizing

Publishing

Processing

The experiential learning cycle (ELC)

Learning style test in accordance with Kolb (1976)

98

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

thoughtful

future-oriented

pragmatic

7.
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

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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,
conceptual.

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
another.
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.

12
-10
-8
-7

Accommodator

RE-RO
17 15 13 12 11 10 9 8 7 6 5 4 3
4

Convergers

5
6
7
8
9
10
11
12

-6
-5
-3
-2
-1
0
1
2
3

Divergers

2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -11

13
14

16
18

AC-CE

Assimilators

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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 selfevaluation, 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.

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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 familys 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
1

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.
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.
2

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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 familys
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 participants 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 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.

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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.

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NNEX 9 : NAME CHART

Nickname

Symbol

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8

Day 9

Day 10

Day 11

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.
105

Total

ANNEX 10: PARTICIPANTS FACILITATION EVALUATUING CHART

Exercise:

Date:
(Time

Time:
planned:

Aspect

communication

non verbal
communication, body
language, tonality
expression, clarity,
questioning technique
expertise and
understanding
preparation, creativity,
quality

material

start, motivation,
attention

action

rules explanation
activity control and
observation

Publishing

results
sentiments

processing

get it from participants

completeness

generalising

link to processing
lessons learnt achieved

group
dynamics

personal observation

Score
(max
10p)*

Area

content

Facilitators

involvement,
participation level
control
result documentation

time

management, efficiency

team work

cooperation + support

General Observations:

10

observations

ANNEX 11: PSNP+ PROJECT OPERATION AREA

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

107