framework for entrepreneurship education

7/28/2019 Framework for Entrepreneurship Education

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ILO Education and Skills Training project

Proposed Framework for Entrepreneurship Education

Draft Concept Note for Discussion

I. Background: Why entrepreneurship education?

Despite registering a growth rate of 6.2 percent in 2008, amidst a global financial crisis, GDP

increase has not translated into a sufficient number of jobs to absorb the new cohorts of

Indonesian youth on the labour market. Indonesia faces an open unemployment rate of 8.39

percent and an underemployment rate of 27.8 percent,1

and 61 percent of unemployedIndonesians are between 15 and 24 years old. Every year close to two million young women and

men enter the Indonesian labour market. A combination of lack of labour market opportunities

and lack of skills results in many young people being unable to secure a job in the formal

economy. Many of them end up working in the informal economy, but their productivity is

limited owning to inadequate preparation in schools.

Indeed, the fact that a large number of Indonesian students will end up making a living from the

informal economy is not fully reflected in the in-school and out of school learning and training

modules. Most of the schools in the country do not provide any entrepreneurship education that

youth would need to either start a business, join and increase the productivity of an existing

family business, or more generally develop a more proactive and entrepreneurial attitude in their

professional career.

The current theories on economic development include entrepreneurship education as an

important tool for the development of a vibrant micro and small enterprise sector. In Indonesia,

micro- small and medium enterprises (SMEs) contribute 53.6 of national GDP,2

and employ

more than 91.8 million people. Despite the role small enterprises play in the economy, many of

these businesses are unable to grow owing partly to lack of well trained human resources.

1Trends of the selected socio economic indicators of Indonesia, BPS, March 2009

2BPS


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Encouraging entrepreneurial spirit among students and young people will not only contribute in

reducing unemployment, but will also help to boost productivity and competitiveness in the

SMEs.

There have been numerous attempts to conceptualize entrepreneurship education, but no

consensual definition has emerged so far. For the purpose of this note, entrepreneurship

education means within the framework of lifelong learning, the process of providing individuals

with the concepts and practical skills to recognize opportunities, marshal resources, and possibly

initiate and manage a business. The definition includes entrepreneurship education aiming both

at business creation and at improving the student attitude towards his/her professional life.Entrepreneurship education is viewed as part of a lifelong learning process in order to ensure that

individuals can progress coherently in acquiring entrepreneurial competences and improving

their entrepreneurial attitudes within and outside the education system.

Limits of entrepreneurship education should also be noted:

Not everybody can become an entrepreneur. Entrepreneurship education aims both forindividuals at becoming entrepreneur and entrepreneurial. It is not aimed exclusively at

business creation. The aim is also to foster attributes like creativity, autonomy, and initiative

in an individual (as part of life skills).

To be effective in terms of business creation, entrepreneurship education should beaccompanied by a strong component of after training support / coaching / mentoring and/or

linkages with business development services.

To maximize employment opportunities, entrepreneurship education should be part of abroader focus on strengthening micro and small enterprises in Indonesia, in conjunction with

efforts to improve the business environment.

This note is divided in six parts. The second part describes the main initiatives being

implemented so far in the country in entrepreneurship education. The third part attempts to draw

preliminary lessons from this experience, and the fourth part list seven policy recommendations

for a comprehensive entrepreneurship education framework in Indonesia. The fifth and the sixth


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parts make further recommendations for respectively the training of teachers, and monitoring

and evaluation.

II. Outline of current entrepreneurship education system in Indonesia

A. Entrepreneurship Education in Vocational Secondary Education (SMKs)The Ministry of National Education (MONE) has been implementing entrepreneurship education

since 1994 in Vocational and Technical Secondary Schools. The introduction of entrepreneurship

curricula at the vocational secondary schools was seen as an opportunity to combineentrepreneurship learning with technical skills in order to encourage students to become

entrepreneurs. In addition, many SMK schools are implementing a Production Unit which is

an actual business unit run within the school to generate income for the schools and to provide

students with a first work experience. It is to be noted however that most students do not get

involved in the business aspect of the Production Unit but focus on practising their vocational

skills. The Directorate of SMK development (PSMK-MONE) has also initiated an extra

curriculum activity for entrepreneurship, whereby selected school students benefit from (a) a one

week intensive business start up course (with ILO Start Your Business training package), and (b)

start up capital for a group based business in the school.

B. Entrepreneurship Education in the Polytechnic System


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In the polytechnic system, ASPI (The Polytechnic Association of Indonesia) is implementing the

Entrepreneurial Skills Development Project (ESDP) which funded by NUFFIC of Netherlands.

The project aims, among others, to mainstream entrepreneurship through the development of

entrepreneurship curricula and the establishment of Entrepreneurship Training Units (ETU). The

entrepreneurship curricula is developed by TRIODOS FACET, drawing on ILOs Know About

Business training package, the ILO Business Games and GTZs CEFE package. The

International Training Centre of ILO in Turin is

providing technical assistance for the

establishment of the ETU.

C. Entrepreneurship Education in HigherEducation

Several state and private universities have been

using entrepreneurship curricula as a mandatory

subject for one semester. In addition to this,

since 2007 the Directorate for General of Higher

Education provides selected universities with

funds to assist students to start their businesses.

D. Entrepreneurship Education inVocational Training Centers.

Several state vocational training centers (BLKI)

such as BLKI Lembang, Bekasi, BLK Lombok,

and South Sulawesi have been using the Start

Your Business curricula for students who are

interested in starting their business. For

example, BLKI Lembang introduced the Start Your Business program for the agriculture sector

while BLKI Bekasi used the SYB programme for their students who were being considered for

jobs in Japan.

Ministry Of National Education ILOEntrepreneurship Education pilot projectsat a glance

The ILO worked with the Ministry of NationalEducation, particularly, the Directorate of

Vocational Secondary Education since 2002through a pilot test of Start Your BusinessProgramme (SYB). The SYB has now beenused across Indonesia, and a network of SYBtrainers is available in eight provinces.

In 2005/2006, MONE and ILO introducedthe Know About Business (KAB)entrepreneurship training programme in the

vocational and technical secondary educationsystem in Indonesia on a pilot basis. Indonesiajoined the group of 30 countries using theKAB training package. To ensure thesustainability of the project as well as nationalownership, the ILO has enhanced the capacityof Vocational/Technical EducationDevelopment Centres (P4TK) in providingentrepreneurship training. 33 Master trainersfrom Six P4TKs are currently using KAB aspart of their regular institutional trainingprogramme.


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E. Entrepreneurship Education for out ofSchool Youth

The entrepreneurship education for out of school

youth is mostly aimed at assisting young people to

start their own business. The government is actively

promoting programmes to stimulate the creation of

new businesses for youth. For example, the Ministry

of Youth and Support under the Deputy Minister for

Entrepreneurship has been actively promotingentrepreneurship targeting youth in rural areas. The

government provides financial support to institutions

who train youth on vocational and entrepreneurship

skills. In addition, start up capital is also provided to

assist youth to start their businesses. The Ministry of

Cooperative and Small Medium Enterprise has

similar schemes such as the Youth Entrepreneurship

Programme through Cooperative Movement and Agro-business. The Director General for PNFI

of the Ministry Of National Education is also in the process of integrating entrepreneurship

education in the training institutions for out of school youth. It is aimed at providing students

with entrepreneurship attitude, skills and knowledge.

F. Entrepreneurship Education adapted to specific groups.The migrant workers organizations and BLK Malang have been implementing the SYB

Programme targeting domestic workers who have returned from overseas. The training also

includes members of the migrant workers family. In total, there are 39 SIYB trainers working

with organizations supporting migrant workers and their families to make use of their saving

productively. KSBSI Aceh is using the SIYB Programme to provide support to their members

who will retire or are expected to be laid off. In Surabaya, UKM Center of Dinas CSME trains

retired workers of one of the cigarette company on SYB to enable them to start their business

using their saving or severance payment. Several Business Development Services Providers also

The ILO Start and Improve YourBusiness Programme

The Start and Improve Your Businessprogramme is subdivided into three: i)Generate Your Business Idea, ii) Start

Your Business, iii) Improve YourBusiness. The SIYB programme has beenimplemented in more than 90 countries

with more than 80 Master Trainers and4,500 Trainers. It has a strong qualityassurance system, with a centralised

certification body at ILO InternationalTraining Center in Turin. In Indonesia, theprogramme was introduced in 2002 incollaboration with the Ministry OfNational Education. Six master trainers,more than 230 trainers and 35 partnerorganizations are actively promoting andimplementing the SIYB programme,including KADIN and APINDO.


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use SYB programme training prisoners who will be released from detention. There are also

examples of Business Development Services Providers marketing entrepreneurship education in

drug rehabilitation centres including for people living with HIV&AIDS. In Papua, ILO has been

working with provincial and district Governments to train Papuan communities, also relying on

local traditions (adat).

III.Lessons Learnt

These are the main lessons learnt from entrepreneurship education initiatives in Indonesia:

Need for an overall framework with specific responsibilities - There has been a lot ofemphasis on developing and upgrading entrepreneurship curricula. For example, PSMK (the

Ministry of National Education Directorate for Vocational Secondary Education

Development) has been revising its entrepreneurship curricula every four years (1994, 1999,

2002 and 2007). ILO has also helped by adapting and piloting international training modules.

However, fewer resources were used for rolling out the training for teachers and instructors,

as part of a comprehensive plan. Most entrepreneurship education activities were so far

initiated by the Central Government, while only few provincial and district Governments

contributed financially in teachers training.

Entrepreneurship education requires a paradigm shift in teaching methodology - In thosecases where training of individuals was student centred and accompanied by coaching

support, and linkages with the private sector, a greater impact was noted in terms of: (a) use

of interactive and practical approaches, (b) number of students considering opening a

business in the future, (c) number of students able to establish a linkage between their current

learning and future occupations.

Youth need more assistance in formulating a business idea, encouragement andmotivation, while adults need more assistance in terms of business management (source

SIYB evaluation in Aceh).


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In school entrepreneurship education works better with an all school approach -Experience has also shown that it is important to train teachers along with the school

principals, education inspectors, parents committees, and/or a representative from the private

sector in order to implement a successful and dynamic entrepreneurship module.

An integrated approach namely access to practical skills training, business managementknowledge and access to financial institutions is an effective approach for business

creation - The Start Your Business Impact Assessment in Aceh 2007 found that around

41.5% of total respondents started a business (27%) or an income generating activity

(14.5%). Challenges faced by most of the respondents in starting their business included

attracting customers, getting raw materials, managing finances, and access to external

finance. The involvement of Business Development Services was directly linked to the

sustainability of the micro-enterprises.

IV Seven Proposed Policy Priorities for Entrepreneurship Education

o Ensure political support across ministries and throughout provinces and districts forentrepreneurship education as a key competency for all Indonesians, as part of a

comprehensive policy to reduce under-employment, and provide support to micro and small

enterprises. This wide based political support should result in

sustained and coordinated funding for the programme, a generic enterprise education model to be customizedwith cultural differences at

provincial level.

o Set upclear goals of what is to be achieved, through lifelong learning process including forin-school and out of school youth, for dismissed or retrenched workers, with related budget

and impact indicators. Practical incentives are needed, particularly since schools and teachers

have a greater autonomy under the current system (Kurikulum Tingkat Satuan Pendidikan). It


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is important that the school management and teachers are convinced about embarking on

these activities and that school environment is favourable to entrepreneurship education.

o After a review exercise of past experiences and based on agreed competencies (see draft inannex 1),

recommend curriculum as part of SMP (Junior High School), SMA (GeneralSecondary School), SMK (Vocational Secondary School) and out of school youth,

and for retrenched / dismissed workers,

reviewhow entrepreneurship can be mainstreamedwithin existing subjects;

o Set up innovative public - private partnerships with (a) training providers, (b) enterpriseswishing to sub-contract part of their production / distribution, and (c) trade unions (for

workers education). As part of the same recommendation, it is important:

To recruit participating agencies for entrepreneurship for out of school based on theirperformance and capacity rather than on their status (PKBM, LSM, private..);

to recognise and maximize the role of educators other than teachers (parents,practitioners, entrepreneurs, students themselves);

establish incentives for companies contributing time and resources to enterpriseeducation,

attach students to real companies and to business people, in order to ensure a closementoring / coaching relationship with business practitioners.

o Build the capacity of entrepreneurship teachers and decide on a certification system for thesame. Capacity building of teacher should focus on learning by doing. It should not be

limited to one time training but includecoaching and after training support, secondment to

small companies and study visits to successful schools in order for teachers to truly engage,

and develop their competencies. The role of educators is conceived as

providing an environment allowing the individual to feel empowered to take risks, facilitating the change of attitude among student towards a more dynamic approach

to the world of work and his/her own professional life.


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o Establish within a P4TK one or more decentralized Units for Entrepreneurship Education,with provincial focal points in charge of:

stimulating innovative ways to deliver entrepreneurship education through targetedblock grants,

carrying out tracking studies and documenting impact, documenting, validating and disseminating specific lessons learned through online

communities of practice,

granting the label entrepreneurial school to schools having shown remarkableachievements.

o Support school business projects and business incubators, in partnership with the privatesector, whereby students are involved in concrete business activities both at production and

management level (with due care for Occupational Safety and Health concerns), giving due

recognition of their performance through marks and competition.

V Proposed Teachers Training and Certification

Qualified master trainers are a key factor for the effectiveness of entrepreneurship education in

the country. Using the ILO experience, it is proposed to have three level training systems to

create a pool of experts on entrepreneurship education. These are 1) master trainers, 2) key

facilitators and 3) facilitators (teachers). Each will have to be trained and supported with

coaching and regular skills upgrade trainings, to carry out their respective tasks. The proposed

tasks for each are as follows:

a. The role of master trainers in P4TK should be:- to ensure that key facilitators are using student centred teaching methods when conducting

entrepreneurship training to teachers.

- to establish innovative teaching methodology on entrepreneurship education for classroomand extra curricula.


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- to collect good practices on the effectiveness of entrepreneurship education, and todisseminate them through various medias.

b. The role of key facilitators at provincial level:- to promote entrepreneurship education training programme for schools and teachers and

market the programme to provincial/national government.

- to train teachers on entrepreneurship education using students centred learning activity.- to provide after training support to teachers such as new teaching skills on entrepreneurship,

coaching, etc.

c. The role of facilitators/teachers- to implement student centred learning activity in their classrooms.- to conduct regular monitoring on student satisfaction who participate in the entrepreneurship

education programmes.

- to motivate students to establish student business club, etc.

According to the government regulation No. 74/2008, there are two ways of acquiring

certification for teachers, namely: 1) competency test through portfolio assessment, and 2) direct

certification for those who have postgraduate and doctoral degree.

The assessment of portfolio covers 1) academic qualification, 2) training and education, 3)

teaching experiences, 4) learning plan and implementation, 5) assessment from supervisor and

superintendant, 6) academic achievement, 7) professional achievement development, for

example, conducting a research, 8) participation in the workshop, 9) organizational experiences

related to education and social issues, and 10) awards relevant to the education. These

components of the portfolio cover four core teacher competencies namely 1) Pedagogic

competency, 2) Personal competency, 3) Social competency, 4) Professional competency.

Each year, the Ministry Of National Education sets a target for teacher certification which covers

all teaching subjects. Teachers working on entrepreneurship should be encouraged to register


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themselves for certification. Their participation in the international entrepreneurship training

such as KAB and SYB will contribute to give them higher scores.

No Component of portfolio Proposed criteria for certification of entrepreneurship

teacher

1 Academic qualification

- Diploma IV or S1Teachers should have minimal academic qualification as

required. MONE may need to assist teachers who do not

have the current minimum academic qualification to obtain

at least Diploma IV qualification.

2 Training and education Teachers must participate in entrepreneurship training

programme focusing more on modern teaching methods.

The KAB Training programme may be used as reference

for teacher training institutions.

3 Teaching experience NA

4 Learning plan and

implementation

School principals/ management ensure that the teachers

prepare learning/session plan using modern teaching

methodology.

5 Assessment from

superintendants and

schools principals

There are two areas which can be assessed related to the

teaching style. Superintendants and schools principals can

play an important role to review entrepreneurship teachers

on:

- Teaching innovation and creativity onentrepreneurship.

- Communication skills.- Networking skills with businesses and associations.

6 Academic achievement - Score may be given if teachers are able to assiststudents winning skills competition on entrepreneurship

7 Professional Achievement - Teachers should be encouraged to write articles innewspaper on success stories on entrepreneurship

- Teachers should be encouraged to conduct research onentrepreneurship


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8 Participation in the

workshop

- Encourage provincial/district education office to makeregular knowledge sharing workshops on

entrepreneurship.

9 Organization experiences

related to education and

social issues

- Encourage teachers to establish or participate in theAssociation of Subject Teacher (Musyawarah Guru

Mata Pelajaran)

- Encourage teachers to establish business clubs onentrepreneurship.

10 Awards relevant to the

education subject

NA

6. Monitoring and Evaluation

In order to guarantee a rapid and sound development of the Entrepreneurship Education, it is

proposed to establish a standard system for Monitoring and Evaluation, to allow national and

provincial decision makers, schools management, teachers and others to assess its impact and

adapt the strategies accordingly. The proposed indicators are summarized in the followingmatrix.

Programme Performance Indicators

Focus StudentsSchools

Key Facilitators (P4TK,

LPMP3)

Scale

Number of students

receive entrepreneurshipeducation programme

Number of students

participate in the

students run enterprise

Number of trained

teachers onentrepreneurship

education

Number of teachers

attaining teacher

Number or provinces

where a key facilitator isavailable

Number of key

facilitators working on

entrepreneurship

3Lembaga Penjamin Mutu Pendidikan (Education Quality Assurance Body)


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certification

Number of provinces

where

entrepreneurship

education is available

education programme

activities

Quality

Students satisfaction

with services provided

by teachers and school

Students satisfactionwith materials produced

(business games,

textbook, workbook)

Schools satisfaction

with the availability of

services and materials

satisfaction.

Teachers satisfaction

with training and after

training support

provided by key

facilitators

Impact

Students attitude

changed

Personal Entrepreneurial

Competencies improved

Transition from

education to work

facilitated and applied

Percentage of schools

change to conducive

learning environment

Cost-effectiveness

Cost per teachers

(training, after training

and certification)

linked to a measure of

impact

Cost per

organisation/facilitator

linked to a measure of

impact

Sustainability

Percentage of teachers

and schools actively

implementing student

centred learning

National systems for

quality control,

continuous support and

training of facilitators


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Continuous support from

provincial/national

government

Tools used for monitoring purposes may include Focus Group Discussion with students to

review pre and post training entrepreneurial attitudes, evaluation of the teaching process

(preparation, methodology, students participation..).


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Annex 1 Proposed Entrepreneurship Competencies by Target Audience

Target audience Key Competencies Modules piloted inIndonesia

For immediateaction

SMP Know about role of

enterprises and

entrepreneurs in

society

SMA - Demonstrateentrepreneurial

characteristics

- Understand skillsrequired to start a

business

Modified Know

About Business.

- To developcurricula as part of

the life skills,

career guidance,

or local content.

- To providecontinuous

capacity building

for teachers

particularly in

developing

conducive

learning

environment.

- To link schoolswith the private

sector.- To link schools

with Business

Development

Services Providers

SMK Demonstrate a Know About Business - To provide


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dynamic

entrepreneurial

spirit

Demonstrateunderstanding the

structure of

business planning.

continous capacity

building for

teachers

particularly in

developing

conducive

learning

environment.

- To link schoolswith the private

sector

- To link schoolswith Business

Development

Service providers

for future interest.

Higher Education - Demonstrate askill to translate

problems into

acceptable

opportunities.

- Able to applyprinciples of

human relation

management

- Demonstrateapplication of

technical skills in

entrepreneurial

context

- Is able to design a

- To develop pilotmodules using

hands on practical

learning for

students.

- To providecontinuous

training for

lecturers in

developing

hands-on practical

learning

environment.

- To build strongercooperation


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business plan between

universities and

business

communities,

particularly small

and medium

enterprises.

- To developbusiness

incubators.

Out of school - Understandentrepreneurial

characteristic

- Understand skillsrequired to start a

business.

- Understand anddemonstrate skills

required to

improve a

business

- Is able to developbusiness plan

- GET Ahead4- Generate Your

Business Ideas

- Start Yourbusiness

- Improve YourBusiness

- To enhance thecapacity of

business

development

services on

entrepreneurship

and business

management

training

programme.

- To definecertification

process for

trainers/instructors

in cooperation

with Badan

4GET Ahead is a training package for poor women engaged in or wishing to start a small-scale business. It differs fromconventional business materials as it highlights entrepreneurial skills from a gender perspective. GET Ahead aims to strengthenthe basic business and management skills of trainees. It shows women how to develop entrepreneurial skills and to obtainsupport through groups, networks and institutions dealing with enterprise development. Please contact ILO Jakarta for moreinformation.


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Nasional

Sertifikasi Profesi

(teh National

Body for

Professional

Certification) and

Ministry of

Cooperative and

Small Medium

Enterprises.

- To build strongercooperation with

the NGOs and

private sector5

for

better outreach.

- To establishlinkage with

financial

institutions

explore the

possibility of pool

funds for credit

guarantee for start

up businesses

owned by youth.

5For example with Indonesia Business Link, British Council, Sampoerna Foundation, etc.

framework for entrepreneurship education

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