1. Global Workshop on Development Impact Evaluation in Finance and Private Sector Rio de Janeiro, June 6-10, 2011 Presented by Obert Pimhidzai - AFTP2, & Mattea Stein- AFTDE w ork done with Bbira Bbosa-KASSIDA, Francisco Campos-AFTPM, Peter Dhamuzungu-PSFU, Markus Goldstein-AFTPM, Antoinette Schoar-MIT, Bilal Zia-DECFP KATWE SMALL SCALE INDUSTRY ASSOCIATION INFORMAL SKILLS TRAINING PROGRAMME - UGANDA

2. Informal sector biggest form of non-farm employment in Uganda 2 ND LARGEST CONTRIBUTOR TO NET JOB CREATION IN UGANDA, 1992-2006 PROJECTED TO CONTRIBUTE TO 25% OF NEW JOBS IN THE NEXT 10 YEARS

3. …. But productivity in the sector is limited LOW CAPITAL, RUDIMENTARY TECHNOLOGY POOR WORK ENVIRONMENT

4. …. But productivity in the sector is limited LOW CAPITAL, RUDIMENTARY TECHNOLOGY POOR WORK ENVIRONMENT

5. …..will skills training improve productivity and raise the quality of employment in the sector?  In a 2009 study of micro enterprises in the informal sector, entrepreneurs reported these major constraints: Inadequate access to capital Low incomes and High risk of failure, 50% fail in first 3 years Poor technical & business skills, general lack of knowledge Difficult working environment – double taxation, harassment Poor business strategy, low rates of return Poor knowledge of the fee structure, regulations e.t.c.

6. Intervention KASSIDA SKILLS TRAINING PROGRAMME MANAGERIAL (Managers only- same course for all sectors, 24hours of training, 2hrs/day sessions, starts first TECHNICAL (tailored to each of the 9 sectors – 44 hours of training, at model workshops, 2hr/day sessions METAL FABRICATON CAPENTRY CATERING KNITTING & TAILORING FOUNDRY FITTING & MACHINING BARBER SHOPS AND SALOONS SHOE MAKING ELECTRICAL BUSINESS PLANNING MARKETING FINANCIAL MANAGEMENT

7. Outcomes Enterprise level Employee level Household level Improvement in the standard of living of beneficiaries and their dependants Efficiency in production Reduced time taken to produce an item Reduced cost of production High product quality Better workshop organization Formality Higher registration Tax compliance Firm Growth Higher employment Increased turnover Higher profits Marketing Skills & Innovation Better Linkages and innovation in production Broadening customer base Opportuniti es &working conditions Earnings Started own business Credit Open bank account Number of jobs offers (as a measure of recognition of improved capacity) Increased knowledge Technical methods Safety practices NETWORKING- Is new info/skills learned through the training diffuse through business networks? How? Magnitude of impact?

8. Design - issues

9. Selection process 796 workshops in 9 sectors applied to KASSIDA’s training Workshops stratified by sector & grouped into clusters (within 20m) - 228 clusters of firms identified Similar clusters are paired according to size of cluster, sector, size of firms, personal characteristics of entrepreneur. of 114 clusters with 396 firms randomly selected to receive KASSIDA’s training

10. …..choosing a cluster

11. Implementation stages Firm registration and Listing Intervention Baseline survey Mini-follow up End line survey

12. Descriptives from preliminary baseline data Sector Female owned Workers (mean) Workers (median) Years of education Owner Age Has a business plan Has an annual Budget Keeps a ledger Average monthly profit (USD) Average Monthly turnover (USD) Barbershops and Saloons 91.32.22.09.734.513.014.511.6 148 492 Carpentry 6.42.31.010.138.714.919.28.5 156 866 Catering 98.22.41.07.637.08.37.33.7 86 445 Fitting & Machining 0.02.93.012.448.17.150.07.1 2,868 8,060 Electrical 9.15.71.011.238.018.29.118.2 371 1,167 Foundry & Forgery 21.31.71.07.436.013.118.04.9 128 641 Metal fabrication 3.74.02.09.741.913.513.012.0 296 1,770 Shoe making 8.32.65.09.335.35.619.413.9 224 609 Tailoring 64.60.70.09.636.07.310.93.1 146 371 ALL 44.02.31.09.337.910.713.57.7 236 993

13. Major source of skills learning for the sector

14. ..as Uganda thinks about skills development….  Evidence from the IE valuable for the incorporation of informal skills training in the BTVET strategy!!!  Intervention a potential solution to how to effectively reach people in the informal sector who are currently excluded by the formal nature of BTVET