THE CEFE APPROACH

SBPP has been able to initiate a global movement in small business creation. The CEFE approach of GTZ, with an NBC core, is now been implemented in over 70 countries. The approach was developed, tested, and adapted through SBPP experiences since 1983. Average start up rates of 2,300 trainees of the program show 53% success. One NBC package for 20 persons results in ten new enterprises, 70 new jobs, and US $70,000 in investment. A version of the following article appeared in the Vol. 6 No. 2 June issue of Small Enterprise Development, Cranfield Institute of Management, regarding the CEFE approach.

Competency-based Economies Through Formation of Entrepreneurs (CEFE) is a GTZ program that has been operating world-wide since 1988, especially in developing countries. In August 1993, BMZ (German Federal Ministry of Economic Cooperation and Development) initiated a year-long evaluation study of the program's effectiveness. The report appeared in December 1994. The evaluation team, made up of four independent human resources experts, visited well-established programs in five countries: Vietnam, Philippines, Chile, Kenya, and Brazil. CEFE activities in other countries were evaluated through the appraisal of mission reports, project status reports, and interviews with personnel.

POSSIBLE WAYS OF IMPROVING CEFE (NBC)

CEFE is defined by program managers as a "comprehensive set of training instruments designed to stimulate small and medium enterprise development through the use of ex- perimental learning methods. Its focus is to enhance competence and potential of entre- preneurs. It helps them improve business performance."

Over the last six years, CEFE's international programs have involved more than 2,000 participants in 70 countries. Evaluators find that 30 to 50 percent start new enterprises. Based on a sample of 156 CEFE graduates, the confirmed rate of those starting up busi- nesses after participating in the program is 38%. As a number of trainees are still in the process of setting up business, the success rate could eventually reach 45%. CEFE training also shows a strong impact on working entrepreneurs: evaluation showed that 80% of the participants achieved an income increase between 20 and 50%. 60% were able to boost the number of their employees. In general, evaluators considered that a five year "incubation" period should elapse before making any significant assessment of the overall impact.

The evaluation report claims that CEFE did not introduce local adaptations of the concept: a standardized package was used for different cultures and values. If adaptations were made, they were a result of the efforts of local partner institutions.

Evaluators emphasized on the selection of local partner organizations because "the success of training programs largely depends on them." Considering benefit aspects, the selection of organizations should be the main priority before starting CEFE programs. Evaluators define efficient partner organizations as those with vision, motivated and professional staff, specialization, management capacities, transparent and decentralized decision-making processes, productive and innovative staff, resource potential, and a good networking with other institutions.