Mid-term findings of the pilot testing of Entrepreneurship ...· Mid-term findings of the pilot testing

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  • Ministry of National Education


    Ministry of Manpower and Transmigration

    Mid-term findings of the pilot testing of Entrepreneurship Education curriculum in 42 secondary vocational training

    Schools/Sekolah Menengah Kejuruan (SMK) among 2,778 students in School year 2005/2006

    International Labour Organization, Jakarta March 2006









  • Summary

    The Ministry of National Education (MONE) and the International Labour Organization (ILO) have introduced the Know About Business (KAB) entrepreneurship training programme in the vocational and technical secondary education system in Indonesia on a pilot basis in school year 2005/2006. The objective is to determine whether the KAB learning materials are relevant for the entrepreneurship subject that MONE has introduced in some its vocational secondary schools. The overall goal of MONE along with other related ministries and in particular the Ministry of Manpower and Transmigration (MOMT) is to make successful entrepreneurs of more of the nations young people as well as increase their employability in order to reduce unemployment rates and poverty in the longer term.

    Currently, 42 schools, 80 teachers and students from across Indonesia, from Sumatra, through Java, Bali, Kalimantan, Sulawesi, Nusa Tenggara Timur, the Malukus to Papua are participating in the test. Initial results, from the 2,778 questionnaires received at this point in time, a little more than mid-way through the school year, show that the KAB learning materials are highly appreciated by the participating schools, which are finding the materials very appropriate, easy to teach and responding well to the syllabus that has been prescribed by MONE. All schools are showing a high degree of enthusiasm in teaching KAB to their students and they believe that KAB should become the foundation for a standard entrepreneurship curriculum to be introduced in all secondary schools across Indonesia.

    More importantly, however, these mind-term findings show that the KAB subject is appreciated by the students, that they are having fun learning about the world of business while thinking harder about becoming entrepreneurs themselves. The findings also show that students have very positive perceptions about entrepreneurship and the world of business and that they are by no means closed to the idea of starting their own business. On the contrary, the majority of students state that they would like to start their own business if only they had more knowledge about how to start a business and if they only knew more about the world of business. This shows that the youth of Indonesia in fact are potential entrepreneurs and that they would venture into starting their own business provided that they have the proper educational background to make more informed decisions about what is needed to do so. The KAB learning material may be just what they need and what Indonesia needs to tap the potential of the nations most important raw material, its young women and men.

  • Know about Business mid-term findings


    In the coming five to ten years Indonesia will continue to face grave employment challenges in finding jobs for young women and men that are making the transition from school to work thereby entering the labour market. Almost half of Indonesias population, equivalent to 104 million or 47.2 percent of the total population are children and youth, of which 63 million are above the age of 15. Currently, the share of underutilized youth in the labour force, those that are either unemployed or underemployed is 52.7 percent and the share of untapped youth, those that are neither in the education system nor in the labour force is 19.5 percent. Underutilization is particularly acute for the 19 to 24 year age group, among whom frustration and a sense of exclusion from a productive career can easily translate into a range of social problems.

    Whereas demographic trends indicate that a slight reduction in the percentage of the population is likely in future years, the absolute numbers of children and young people that will need to be nurtured into employable and productive adults will still remain high. There are approximately three million new entrants to the labour market each year and a large number of them cannot go straight into a secure paid job. Preparing school leavers for a situation where formal wage employment may not exist and where waged employment in the informal economy, self-employment or starting a small business may be the only alternatives to unemployment, is therefore crucial if Indonesia is to maintain a peaceful and secure environment in which domestic and foreign investment can increase.

    In 2002 Indonesia committed to becoming a lead country within the global Youth Employment Network (YEN) which included developing a national action plan on youth employment. In 2003, within the ILO technical cooperation project on Addressing The Challenge Of Youth Employment In Indonesia, a number of initiatives were undertaken to help Indonesia develop its national Action Plan and to introduce a number of demonstration programmes. The Indonesia Youth Employment Action Plan (IYEAP) was launched in August 2004 under the current project on Promoting Youth Employment in Indonesia: Policy and Action

    The first demonstration programme was the ILOs Start Your Business (SYB) package, which was introduced to the vocational secondary school system (Sekolah Menengah Kejuruan - SMK) and the tertiary vocational school system (Balai Latihan Kerja - BLK) to provide young women and men with basic knowledge and tools to start their own small business after they graduated. The SYB materials went through a number of adaptations and 12 lead trainers from the Ministry of National Education (MONE) and two from the Ministry of Manpower and Transmigration (MOMT) were trained on how to deliver the SYB programme through the SMKs and BLKs using the SYB package. These trainers have in turn trained around 160 teachers from selected SMKs and one trainer from MOMT has trained 179 students in the BLK in the city of Serang.

    Discussions with SYB lead trainers and with the monitoring and evaluation (M&E) specialist of the vocational and technical training department under MONE have

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  • Know about Business mid-term findings

    however revealed that SYB was not being introduced in the SMKs as the coherent package originally intended by MONE and the ILO. Rather the SYB training materials were being used on an ad hoc basis as entrepreneurship education curricula. The likelihood of students then having the right set of management skills to be able to start their own business after graduating was highly unlikely. Furthermore, the discussions also suggested that most young women and men would need more life experience and skills, and additional support to start a business. Therefore, focussing on general business awareness and entrepreneurship education prior to being introduced to the SYB programme was seen as a better option. The SYB package could then be introduced to final year students in the SMK, and to older students in a more advanced institutional setting and for out-of-school youth.

    Subsequently, in collaboration with MoMT and MONE the ILO introduced and is pilot testing the ILOs Know about Business (KAB) entrepreneurship education programme targeted at students in their first two years of senior high school. The materials were adapted in June 2005 and 116 teachers from 49 SMK, 3 BLK and 6 PPPG across Indonesia from Banda Aceh at the Northern tip of the Island of Sumatra to Jayapura in West Papua, 5,000 kilometres apart, were trained in July and August 2005 to test the KAB programme in school year 2005/2006.

    Of the 49 SMK that participated in the ToT, 42 are participating in the pilot project to test the materials. The BLKs have opted to focus on the SYB programme as the 120 hour KAB programme would only be applicable for a very small number of BLKs. The 40 hour SYB programme is more suitable for their target market. The PPPGs were invited to participate in the monitoring and evaluation of the pilot test, and in preparation for their future role as KAB teacher trainers. It is anticipated that in their future role they will also work closely with the provincial LPMP to train teachers to deliver and monitor the KAB programme.

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  • 2. WHAT IS KNOW ABOUT BUSINESS? The KAB package is designed for use in vocational education and training institutions to give young people an awareness of, and exposure to the opportunities, challenges, procedures, characteristics, attitudes and skills needed for successful entrepreneurship. The KAB entrepreneurship education programme is a modular approach with a total of 120 hours of teaching delivered in 9 modules. The learning materials are based on exercises, group work, games, and hand-outs with a participatory teaching style that engages the students throughout the learning process. KAB introduces, to 15 to 19 year olds, the basics of entrepreneurship by looking at topics such as what is enterprise? in its broader sense, what does it mean to be entrepreneurial?, who are entrepreneurs in society?, etc.

    Each KAB module represents a key area of entrepreneurship and is divided into several topics. The titles of the modules are in the form of questions. The learning objective of each module