Skill Gaps and Training Needs of Existing and Potential Entrepreneurs in Uganda

GLOBAL EXCHANGE AND TRAINING FOR YOUTH EMPLOYMENT SERVICES 2 Project number: 618649-EPP-1-2020-1-MK-EPPKA2-CBY-ACPALA

SKILL GAPS AND TRAINING NEEDS in young existing & potential entrepreneurs NATIONAL REPORT FOR UGANDA

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Preface GET YES 2 is a partnership between 6 partners from 6 countries worldwide: Venezuela, Turkey, Philippines, Bulgaria, Uganda and N. Macedonia. It is a 24 months’ capacity building project in the field of youth.

The main motivation behind this project is to foster the cooperation, exchange and upgrade of good practices between project countries with a final vision – new quality jobs through creation of entrepreneurship mindset and culture among economic actors in the societies.

The aim is to build the know-how and technical capacities of the six partners, and by that to create: reports with data for supporting entrepreneurs, training need analysis, 24 new trainers, training programs for gaining entrepreneurial competences, educational platform for retention of skills, IT solutions for standardised working, exchange of experience in creating local jobs, and through created services to encourage 300 young existing or potential entrepreneurs to create new jobs. As added value is the standardization and networking among CEFE centers around the world.

The GET YES 2 partnership appreciates the usefulness of a comprehensive understanding of skill gaps and training needs among young people in business creation, operation and development, especially those associated with their actual or potential creation of enterprises.

Identification of specific knowledge deficiencies and skill gaps of the target groups in the partner countries was the main objective of an on-line survey undertaken in all project partner countries. Main objectives of these surveys are: (a) to reveal “Skill Gaps” of prospective young business creators (interpreted as “training needs”), (b) to consider how training programs could be organized and delivered most effectively, (c) to investigate the readiness and willingness for cooperation with other organizations that support entrepreneurs in respective countries.

The present Report contains the results of the survey conducted in Uganda The associated tasks were coordinated by Safari Vivian Gordon and Kembabazi Phionah who are the main authors of this Report. Areebahona Gerald gave valuable asset for mentoring the process. The author(s) wish to acknowledge the information and support received from Drucilla Balaba Handicraft- Diocese of Kigezi LTD.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Table of Contents Executive Summary .................................................................................................................................4 Sampling Methodology and the Report’s structure ................................................................................5 1. Survey participants personal characteristics .......................................................................................6 2. The Professional & Business characteristics ........................................................................................9 3. Motives for becoming entrepreneur/intrapreneur...........................................................................11 4. Running a business – Expected or Experienced Problems ................................................................12 5. Importance of skills requirements associated with running a business ...........................................14 6. Knowledge and adequacy of skills requirements associated with running a business .....................18 7. Survey participants’ views on how skills could be upgraded and retained ......................................20 8. Comparative analysis of “Problems”, “Skill Gaps” and “Knowledge Adequacy” among surveyed ..21 9. National Survey specific issues ..........................................................................................................23 Annex A: Survey Results .........................................................................................................................24 Annex B: Survey Questionnaire ..............................................................................................................34

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Executive Summary The research on GET-YES project in Uganda was very paramount to be conducted. This was because in the business world, exchange of ideas pertaining the carrier development of those who engage in Vocational Training brings the element of personal development and enterprising. The GET-YES project is to be implemented by Drucilla Balaba Handicraft – Diocese of Kigezi LTD and the institution is located in Southwestern Uganda, which Boarders with Rwanda in the South.

The field research in Uganda was conducted by a research team, who used the questionnaire from the project (See Annex). Field visits were conducted amongst the youth that Drucilla Balaba Handicraft Diocese of Kigezi LTD had trained and those who were still undergoing the training. The researchers administered the questionnaires by conducting face to face interviews with the respondents.

The total number of the questionnaires administered and completed was 50, and most of the respondents were mainly female youth with only 3 males. The major reason for targeting the female youth was centered on the fact that Drucilla Balaba Handicraft -Diocese of Kigezi LTD as an organization targets mainly the female Adolescent youth in undertaking the vocational training skills and business development.

Most of the responses were from the female youth and a few male from the age bracket 1535 years. The idea of family business inheritance and succession is a process and aspect of upgrading and retaining the skills attained was very much taken care of.

Choosing on the female gender on the other hand was not to segregate the male counter parts but instead was as well very important because the female youths are more vulnerable.

The female youth, when they are not engaged in business ventures and given the suitable vocational and business skills, quite often they are found in several of the traps by a section of male counterparts who may be planning to lure them in premarital sex in exchange of material gains like money . This would at the end destroy their future carrier by infecting them with such diseases as Acquired Immune deficiency Syndrome (HIV/AIDS) and also unwanted pregnancies that culminate into early marriages with its related problems.

The research was thus conducted among the females who were intentionally and randomly selected among the current students of Institutions of learning and those who finished and left but were once students of different Institutions of business and Vocational skills learning.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Sampling Methodology and the Report’s structure The sample of 50 respondents were obtained and segregated as follows: Youth still undergoing training 21

Youth who have graduated 19

Youth employed 10

Total number of respondents 50

The team of researchers from South Western Uganda was picked on and gathered the information from 50 respondents by conducting a face to face interview while administering the Questionnaire from the project applicant. The questionnaire was in English language which was by coincidence the National language in Uganda and for those of the respondents who could not understand the English language the researchers translated the questionnaire into the local dialect.

It was agreed upon right from the beginning that the institution Drucilla Balaba Handicraft – Diocese of Kigezi LTD ) was to provide the researchers with the list of the students they have ever trained and those who were still undergoing the training where the respondents would be drawn as a representative sample for the research.

The researchers thus used a purposive and random sampling technique to get the sample of the respondents.

In the process of reaching to the respondents who were now in the family business ventures, the biggest challenge was that several of these respondents were scattered and were not found in one particular location. This was however, addressed by using the telephone contacts provided by the institution and we the researchers would drive to their respective areas of operation to conduct a face to face interview with them and see their business as well.

The researchers also picked respondents from the organizations that network with Drucilla as sample for the male respondents mainly and these organizations were found to be giving and providing similar services in vocational and business training.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

1. Survey participants personal characteristics Key findings: Most of the questionnaires were answered by females respondents Most of the respondents ranged from age bracket of 18-25 The education level for the respondents was mainly primary school drop outs and in the administered questionnaire, this category was not provided for.

44 % of the respondents were found to be starting their small businesses on their own 28 % of the respondents said they would be able to succeed the family business in the next 3-5 years.

28 % of the respondents were still undergoing trainings and mentioned that they were not inline to tell whether they will succeed the family business or start their own businesses in the next 3-5 years

This section provided the opportunity for the respondents to point out their personal characteristics such as gender, age and their level of education as well as the information regarding business owners and relationship between the respondents and those they were working for.

On the gender aspect: From the 50 questionnaires administered, 47 respondents (94%) were females and 03 respondents (6%) were males, as shown in the pie- chart below: Chart 1: Showing gender that responded to the questionnaire

6% 94%

males

females

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

For the age: The largest percentage of the respondents 30 ( 60 %) were within the age bracket of 18-25, 8 respondents(16%), within the age bracket of 26-30, 7 respondents ( 14%) were within the age bracket of 30-35 and 5 respondents (10%) were within the age bracket of 15-18.

Chart 2: Age distribution of respondents

age of the respondents 60

16

14

26-30

30-35

10 0

Range

15-18

18-25

Following the research results, and the questionnaires administered, the education category for those who had not either gone to school or had not gone to the higher levels of education was not included. However, the biggest percentage of the respondents 26 (52%) were primary school drop outs, 19 respondents (38%) were secondary level drop outs, and only 5 respondents (10%) had finished higher level of education.

Chart 3: Education levels for the respondents 60 50 40 30

percentage

20

10 0 primary drop outs

secondary level

higher level

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

In consideration on whether the respondent has participated on training for entrepreneurship in the past, 33 respondents (66%) said “they had participated in the training and 17 respondents (34%) had not participated in any entrepreneurship training.

Chart 4: Participation on training for entrepreneurship

percentages participated in any training

had not paticipated in any training

34%

66%

On the question 1.6 to determine the aspiration for business, 20 respondents (40%) had started their business, 16 respondents (32%) said “they intend to establish the business in 3 years time and 14 respondents (28%) said “they aspire to become entrepreneurs in the family businesses.

Chart 5: Aspiration for businesses

percentages percentages 40 32 28

started their business

intend to establish business

aspire to become entreprenuer

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

2. The Professional & Business characteristics Key findings: Most of the respondents 31 (62%), were working under the commerce sector, with 19 respondents (38%) working under manufacturing sector and with no respondent working under ICT and tourism respectively.

44% of the interviewed youths said that it is a good idea to engage themselves and start up their own business, but are always limited by inadequate resources especially finances to start up their own business.

From the research results under section II the professional and business characteristics, II.I which is the business activity sector, most of the respondents 31 (62%), were working under the commerce sector, with 19 respondents (38%) working under manufacturing sector and with no respondent working under ICT and tourism respectively.

Table II.1 Activity sector Sector Commerce Manufacturing Tourism ICT services Total

Frequency 31 19 00 00 50

Percentage (%) 62 38 00 00 100

On the question II.2, which was to establish the business present size, the majority 49 respondents (96%), had the business size between 1-9 people as employees in the business and only 1 respondent (4%) had more than ten employees.

Table II.2 Business present size (Employment) Number of employees Frequency 1-9 49 40-49 1 50+ 0

Percentage (%) 96 4 0

On the question II.3, for the succession of business, 23 respondents (46%) were found out to be the establishers of their family businesses, 14 respondents (28%) had no option on the provided parameters t select from because they were still students undergoing training in vocational studies, while 13 respondents (26%) said “they would be successors of the family business.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Table II.3 Succession of business Business successor Establisher of company Second of generation successor Will be successor Others ( no option to select from the above)

Frequency 23 00 13 14

Percentage (%) 46 0 26 28

On question II.4, to establish the decisive strength to start the business, 22 respondents (44%) said that it would be a good idea, 19 respondents (38%) said “their strength was on finances, 9 respondents (18%) were for business supporters and none of the respondents found strength in competences for manufacturing and business models respectively.

Table II.4 Decisive strength for starting a business Strength Frequency Good idea 22 Competences for manufacturing 00 Finances 19 Business model 00 Business supporters 9

Percentage(%) 44 0 38 0 18

On question II.5 looking at the types of the economy to invest in, 31 respondents (62%), considered traditional entrepreneurship, 12 respondents (24%) considered Networking marketing Business model 7 respondents (14%) considered social entrepreneurship and none of the respondents was in the circular and block chain economy respectively.

Table II.5 Types of economy that was meant to be invested in Types of economy Frequency Traditional entrepreneurship 31 Social entrepreneurship 07 Circular economy system 0 Block chain economy 0 Networking marketing business model 12

Percentage (%) 62 14 0 0 24

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

3. Motives for becoming entrepreneur/intrapreneur Key findings: The biggest number of respondents 17 with 34% expressed their will to start up their own business and become bosses of their own businesses.

This was looked at as an opportunity for self-sustainability and living a dignified life.

The smallest number of the respondents with only 6% found it very important to be supported by their families in going into business.

The respondents expressed their will to have a better future when the Vocational skills development and is supplemented by Business development Services trainings.

The responses for becoming entrepreneur, 17 respondents (34%) said “they would like to become bosses of their own businesses, 14 respondents (28%) said “it seemed a good carrier opportunity, 7 respondents (14%) pointed out that their motive would be to accumulate capital and putting innovative ideas together respectively while 4 respondents (8%) had no alternative and 3 respondents (6%), said “their families expected them to go into business.

What is or was your motive for opening or having a company?

Chart 6: Business motives 40 35 30 25 20 Percentage

15 10 5

0 Become Seemed a Accumulate No Family own boss good idea capital alternative expecting for business

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

4. Running a business – Expected or Experienced Problems Key findings: The main problems with high importance as pointed out by the respondents were: The process of entrepreneurship is very demanding in terms of bureaucracy with 42% The family business is lacking the business strategy with 40% The management of possible conflicts resulting from the business process.

The main problems with low importance on the other hand were : The family business members are not able to take over all the functions that the entrepreneur need to The family does not accept me as entrepreneur The financial aspects of managing the business are not my thing.

In section IV of the survey, the respondents were asked to indicate the importance of the problems they have experienced or anticipate in relation to the family business succession.

The table below presents the percentages in respect to the responses of 50 respondents.

Table IV indicates the importance of each of the listed problems or anticipated in relation to family business succession Problem Low Moderate High importance importance importance IV.1.1 Lack the skills and knowledge to 42 26 32 manage the business IV.1.2 Not yet ready and well prepared 46 30 24 to run the business IV.1.3 Difficult to manage the changes 40 34 26 that business process is requiring IV.1.4 Do not have the technical 44 18 38 knowledge about or running some business IV.1.5 Not able to take over all the 52 22 26 functions that the entrepreneur need to IV.1.6 The process of establishing, 42 34 24 running, and expansion is business not clear IV.1.7 The process of entrepreneurship 12 46 42 is very demanding in terms of family/friends relation 12 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

IV.1.8

IV.1.9 IV.1.10 IV.1.11

IV.1.12 IV.1.13 IV.1.14 IV.1.15 IV.1.16 IV.1.17

IV.1.18 IV.1.19

IV.1.20

Starting and running a business is very demanding in terms of bureaucracy Lacking a clear business strategy Had to recruit and grow the human resources well Managing possible conflicts resulting from the business process The business lacks the organization and division of tasks Family and business matters are complex and intertwined Family does not accept me as entrepreneur Managing costs and calculating the prices is challenging Financial aspects of managing a business is not my thing Am not well prepared for the digital transformation of doing (smart) business Selling process is exhausting the most Facing business related issues that I cannot manage and discuss with others Others

34

44

22

30 14

30 56

40 30

18

40

42

16

48

36

10

58

36

54

18

28

46

20

34

60

22

18

6

14

80

32

40

28

22

58

20

18

62

20

From the results given by the respondents, it was evident that one of the major problems with high importance presented 80% (IV.1.17), and it was pointed out by the respondents that “they were not well prepared for the digital transformation of doing (smart) business”.

Among the high important problems for the family business representatives considered to be those with 40% and above. These were lack of a clear business strategy with 40% (IV.1.9), managing the possible conflicts from the business process with 42% (IV.1.11) as well as the process of entrepreneurship being demanding in terms of family /friends relations with 42% (IV.1.7).

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

5. Importance of skills requirements associated with running a business Key findings: The skills identified as extremely high importance from the survey results with 40% or more, by the respondents were; To be able to understand and identify their own personal entrepreneurial competences To be able to make smart goals How to make effective market survey and analysis Effective time management It was further revealed by this research that the respondents pointed the skills which were as well highly important with the survey results of 40% and above as: To be able to accept responsibility To be able to know how to match idea with personal competences To understand how to implement the 5ps (product, price, place, promotion, and person) in marketing mix strategy.

To enhance the selling skills To organize the work flow

The responses from the survey results under the skills requirements associated with running the business indicating the importance and adequacy are tabulated in the table below with the figures calculated in percentages.

Following the survey results, the skills that was extremely high in importance took the percentage of 40% and more and these were seen to be understanding and identifying the personal entrepreneurial competences (40%), how to make effective market survey and needs analysis (42%) and effective time management (42%).

Table V: Type of skill required- indicator of skills importance in (%) Skills required

Extremely high in importance

Entrepreneurial competences V.1.1 To understand 40 and identify personal entrepreneurial competences

Highly important

24

Moderate important

16

Low important

6

Not important at all

2

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.2

How to manage and calculate the risk V.1.3 Able to accept responsibility V.1.4 Able to negotiate and communicate in professional manner V.1.5 To know how to make decisions Ideation competences V.1.6 To generate, assess, and select a business idea that has the potential on the market V.1.7 Able to make SMART goals V.1.8 Know how to match idea with personal competences Marketing competences V.1.9 How to make effective market survey and analysis V.1.10 Able to define the market needs and potential V.1.11 Understand how to implement the 5Ps V.1.12 Implement the importance of

34

30

20

6

6

28

40

18

6

8

38

26

16

12

8

36

38

16

8

2

30

30

18

14

2

40

32

10

2

16

34

46

6

4

18

42

26

10

10

12

36

36

6

4

18

26

42

14

6

12

16

34

18

22

10

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

digital marketing V.1.13 Able to create 22 34 and execute a marketing plan V.1.14 Enhance the 16 44 selling skills Organizational and production competences V.1.15 To be able to 22 36 plan and describe the production process flow V.1.16 Effective time 42 28 management V.1.17 Organize the 34 43 work flow V.1.18 Understand the 12 38 type of costs and to be able to calculate and predict costs Financial competences V.1.19 Able to 20 20 understand and implement pricing techniques and strategies V.1.20 Understand 14 22 and read profit and loss statements V.1.21 Understand 8 36 and use for management purpose the cash flow statement

34

2

8

12

10

18

18

6

16

8

14

8

12

4

8

18

16

16

22

20

18

30

16

18

32

8

16

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.22

Understand and read the balance sheet V.1.23 Understand the profitability losses V.1.24 Able to undertake effective financial calculations for business purposes Business planning V.1.25 Able to understand and prepare a business plan V.1.26 Undertake business plan presentation in front of donors, clients, employees

14

32

28

14

12

10

18

40

12

20

16

22

44

8

10

12

34

26

14

14

16

24

20

26

14

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

6. Knowledge and adequacy of skills requirements associated with running a business Key findings: The findings of this research indicated respondents pointed out the highly ranked means of how sufficient available knowledge and skills would be seen.

The findings further indicated that the modest way for imparting business skills to entrepreneurs would be employing the study by him/her in prepared sessions for study.

The findings indicated that one would upgrade the entrepreneurial skills through learning from others who have successfully achieved in their business ventures.

During the research process, the respondents were asked to indicate the sufficiency of the already available knowledge and skills associated with running the business and the survey results were calculated in percentages and tabulated as below: Table VI.2: The sufficiency of the already available knowledge in (%) Skills required High in Moderate importance Entrepreneurial competences V.1.1 To understand and identify personal 22 38 entrepreneurial competences V.1.2 How to manage and calculate the 18 40 risk V.1.3 Able to accept responsibility 26 38 V.1.4 Able to negotiate and communicate 36 22 in professional manner V.1.5 To know how to make decisions 32 30 Ideation competences V.1.6 To generate, assess, and select a 20 28 business idea that has the potential on the market V.1.7 Able to make SMART goals 18 38 V.1.8 Know how to match idea with 40 22 personal competences Marketing competences V.1.9 How to make effective market 22 36 survey and analysis V.1.10 Able to define the market needs 40 28 and potential

Low/Very low 40 42 36 42 38 52

44 38

42 32

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.11

Understand how to implement the 5Ps V.1.12 Implement the importance of digital marketing V.1.13 Able to create and execute a marketing plan V.1.14 Enhance the selling skills Organizational and production competences V.1.15 To be able to plan and describe the production process flow V.1.16 Effective time management V.1.17 Organize the work flow V.1.18 Understand the type of costs and to be able to calculate and predict costs Financial competences V.1.19 Able to understand and implement pricing techniques and strategies V.1.20 Understand and read profit and loss statements V.1.21 Understand and use for management purpose the cash flow statement V.1.22 Understand and read the balance sheet V.1.23 Understand the profitability losses V.1.24 Able to undertake effective financial calculations for business purposes Business planning V.1.25 Able to understand and prepare a business plan V.1.26 Undertake business plan presentation in front of donors, clients, employees

42

34

24

76

8

16

18

46

36

42

18

40

20

4

64

38 18 12

28 42 48

34 40 40

4

12

84

2

22

76

6

24

70

4

18

82

2 4

22 16

76 80

10

28

62

18

34

48

Following the survey results, the skills that were high in importance in consideration of the highest percentage of 40% and more and these were seen to be of high importance. These were highlighted as V.1.8 “to know how to match ideas with personal competences (40%) , V.1.10“to be able to define the market needs and potential (40%), V.1.11“to understand how to implement the 5Ps in the market mix strategy (42%), V.1.12“to understand and implement the importance of digital marketing (76%) and V.1.14“enhance the selling.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

7. Survey participants’ views on how skills could be upgraded and retained Key findings: The two best way as pointed out from the survey results on how the skills can be upgraded a retained was: • Participate in organized face to face training session with the highest percentage of 60% which was captured under the best way for upgrading the skills.

• The idea of learning in multiple ways (not only hearing or only reading with the highest percentage of 54% was seen to be best way for retaining the skills.

In order to address the knowledge and skills insufficiency, it would be paramount to have well organized and delivered trainings. During the survey, the respondents were given the choice to pick the type of training they sought would work for them and according to the results; the results were thus tabulated as below: Table VII.1 Upgrading and retaining of skills in (%) Best way for upgrading skills Not preferred V1.1.1 Study by my self 22 V1.1.2 Participate in organized face- to -face 12 sessions training V1.1.3 Distance learning(online learning 62 sessions) V1.1.4 Combination of workshops 66 and distance learning V1.1.5 Benefit from the experience of others 18 V1.1.6 Best shown good practices and see how 22 others are doing things.

V1.1.7 Discuss/ exchange views with other 40 entrepreneurs.

V1.1.8 Others(please explain) V1.2 Best way for retaining skills V1.2.1 Learn in multiple ways(not only hearing 8 or only reading) V1.2.2 Teach another person what you’ve 38 learned V1.2.3 Ask new question that will lead to new 32 learning VI.2.4 Gain practical experience 22 VI.2.5 Look up answers that struggle to 62 remember.

VI.2.6 Understand how to learn the best 66

Moderate preference 64 28

Best

34

4

32

2

52 26

30 52

32

28

38

54

50

12

42

26

36 34

42 4

30

4

14 60

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

VI.2.7 VI.2.8

Use tests to boost learning Others (please explain).

60

30

10

From the table above: V1.1-VI.1.8, on the best way for upgrading skills 30 respondents out

of 50 answered participation in organized face-to –face training sessions as the best way with 60%, 32 answered study by self as the moderate preference with 64% and 33 respondents answered combination of workshops and distant learning as not preferred way of upgrading skills.

From V1.2-V1.2.8, on the best way for retaining skills, 27 respondents out of 50 answered learning in multiple ways (not only hearing or nor only reading) as the best way for retaining skills with 54%, 25 respondents answered teach another person what you have learned as the moderate way with50% and 33 respondents answered understanding how you learn the best as not preferred way with 66%.

8. Comparative analysis of “Problems”, “Skill Gaps” and “Knowledge Adequacy” among surveyed The findings indicated that the importance of identifying personal entrepreneurial competences for purposes of solving the gaps in the business development arena was important. However, in consideration of the results given by the respondents, it was evident that one of the major problems with high importance presented 80% (IV.1.17), and respondents pointed out that “they were not well prepared for the digital transformation of doing (smart) business”.

On the other hand, the high important problems for the family business representatives considered were IV.1.9, lack of a clear business strategy with 40%, IV.1.11 managing the possible conflicts from the business process with 42% as well as IV.1.7 the process of entrepreneurship being demanding in terms of family /friends relations with 42%.

In order to address the major problems and fill the gaps, the survey results further found out from the respondents that skills of high importance would be taken up.

These were highlighted as V.1.12“to understand and implement the importance of digital marketing (76%) which fortunately came as the solution with the highest percentage meaning it was to address the earlier alone pointed problem of respondents not well prepared for the digital marketing opportunity. It would in the due course fill the gap of lacking knowledge under digital marketing.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Some of the other solutions to fill the knowledge gap would be V.1.8 “to know how to match ideas with personal competences, V.1.10“to be able to define the market needs and potential, V.1.11“to understand how to implement the 5Ps in the market mix strategy and V.1.14“enhance the selling skills.

The recommendations to this end would be having organized face-to –face training sessions as the best way for upgrading the skills and promoting of learning in multiple ways (not only hearing or nor only reading) as the best way for retaining skills.

For the question under the section VII. Let us corporate, with the question, would you be interested in the business training courses? The responses from the respondents are here presented in the pie-chart.

Chart 7: Need for Business training

percentages Yes

No

2%

98%

From the survey results the biggest number of respondents with 98% supported the idea of having business training courses with only 2% not interested in the business training. With such a percentage thus, business trainings were highly recommended.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

9. National Survey specific issues 1. High expectations The high expectations from both the respondents engaged in business and the institutions visited caused the researcher to first explain and elaborate on the reasons as to why the research was being conducted. This was further aggravated by the fact that the limited funds that were not enough or even available as facilitation for the initial research process left the researchers handicapped and with minimal explanations on the next stage for the research process.

2. The COVID-19 Pandemic The COVI-19 pandemic which affected entirely the whole world, Uganda was not spared. This affected the business ranging from small scale businesses to large businesses. Many of the family businesses were crippled and some of the businesses closed down. With several of the businesses operating on Loans from the Banks, it greatly affected bigger numbers who would not recover from the debts incurred when selling and buying at one point was halted.

3. The political crisis There would be a bigger chance of gaining from cross-border trade where South Western Uganda boarders with Rwanda in the south. However due to some political uphill, the Uganda-Rwanda boarders were closed. Many of the family business which depended on crossing to the neigh hood country for trade and business ventures were greatly affected.

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Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Annex A: Survey Results

Section I: Personal characteristics Gender of the respondent

Totals

Age

Educational level

15-18

18-25

26-30

30-35

Junior/Primary school drop out

Secondary/ High school

Males

00

Females

50

05

30

08

07

26

24

Total 50 respondents

05

30

08

07

26

24

Participated on entrepreneur training

Total no of respondents

Percentages

Yes

17

34

No

33

66

With business already

20

40

To be established in 3 years time

16

32

Aspiring to be entrepreneur 14

28

Aspiration for training.

24 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Section II: The Profesional & Business’ characteristics The professional and Business characteristics Business sector

Total No of Percentages respondents

Commerce

31

62%

Manufacturing

07

38%

Tourism

00

00%

ICT services

00

00%

Business present size (Employment) Number of employees 1-9 40-49 50+

Frequency 49 1 0

Succession of business

Total No of Percentages respondents

Establisher of company

23

46%

Second of generation successor

00

0%

Will be successor

13

26%

Others

14

28%

Decisive strength for starting a business

Total No of Percentages respondents

Good idea

22

44%

Competences for manufacturing

00

0%

Finances

19

38%

Percentage 96% 4% 0%

25 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Business model

00

0%

Business supporters

09

18%

If yes the Type of economy

Total No of Percentages respondents

Traditional entrepreneurship

31

62

Social entrepreneurship

07

14

Circular economy

00

0

Block chain economy

00

0

Network marketing Biz model

12

24

Section III: Motives for becoming entrepreneur/intrapreneur Motives for becoming entrepreneur

Total No of respondents

Percentages

Accumulating capital (Be rich)

07

14

Seemed a good carrier opportunity

14

28

Putting innovative ideas together

07

14

Family expected me to go into 03 business

6

Had no alternative

04

8

Become my own boss

17

34

26 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Section IV: Running a business – Expected or Experienced Problems

IV.1.1 IV.1.2 IV.1.3 IV.1.4 IV.1.5 IV.1.6 IV.1.7

IV.1.8 IV.1.9 IV.1.10 IV.1.11 IV.1.12 IV.1.13 IV.1.14 IV.1.15 IV.1.16 IV.1.17

Problem

Low importance

Moderate importance

High importance

Lack the skills and knowledge to manage the business Not yet ready and well prepared to run the business Difficult to manage the changes that business process is requiring Do not have the technical knowledge about or running some business Not able to take over all the functions that the entrepreneur need to The process of establishing, running, and expansion is business not clear The process of entrepreneurship is very demanding in terms of family/friends relation Starting and running a business is very demanding in terms of bureaucracy Lacking a clear business strategy Had to recruit and grow the human resources well Managing possible conflicts resulting from the business process The business lacks the organization and division of tasks Family and business matters are complex and intertwined Family does not accept me as entrepreneur Managing costs and calculating the prices is challenging Financial aspects of managing a business is not my thing Am not well prepared for the digital transformation of doing (smart) business

42

26

32

46

30

24

40

34

26

44

18

38

52

22

26

42

34

24

12

46

42

34

44

22

30 14

30 56

40 30

18

40

42

16

48

36

10

58

36

54

18

28

46

20

34

60

22

18

6

14

80

27 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

IV.1.18 Selling process is exhausting the most 32 IV.1.19 Facing business related issues that I 22 cannot manage and discuss with others IV.1.20 Others 18

40 58

28 20

62

20

Section V: Skills requirements associated with running a business – Importance and Adequacy Sn

Skills required

Extremely high in importance

Entrepreneurial competences V.1.1 To understand and 40 identify personal entrepreneurial competences V.1.2 How to manage 34 and calculate the risk V.1.3 Able to accept 28 responsibility V.1.4 Able to negotiate 38 and communicate in professional manner V.1.5 To know how to 36 make decisions Ideation competences V.1.6 To generate, 30 assess, and select a business idea that has the potential on the market V.1.7 Able to make 40 SMART goals V.1.8 Know how to 34 match idea with personal competences

Highly important

Moderate important

Low importa nt

24

16

6

30

20

6

40

18

6

26

16

12

38

16

8

30

18

14

32

10

2

46

6

4

28 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Marketing competences V.1.9 How to make 42 26 effective market survey and analysis V.1.10 Able to define the 36 36 market needs and potential V.1.11 Understand how to 26 42 implement the 5Ps V.1.12 Implement the 16 34 importance of digital marketing V.1.13 Able to create and 22 34 execute a marketing plan V.1.14 Enhance the selling 16 44 skills Organizational and production competences V.1.15 To be able to plan 22 36 and describe the production process flow V.1.16 Effective time 42 28 management V.1.17 Organize the work 34 43 flow V.1.18 Understand the 12 38 type of costs and to be able to calculate and predict costs Financial competences V.1.19 Able to understand 20 20 and implement pricing techniques and strategies V.1.20 Understand and 14 22 read profit and loss statements

10

10

6

4

14

6

18

22

34

2

12

10

18

6

8

14

12

4

18

16

22

20

30

16

29 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.21 Understand and use for management purpose the cash flow statement V.1.22 Understand and read the balance sheet V.1.23 Understand the profitability losses V.1.24 Able to undertake effective financial calculations for business purposes Business planning V.1.25 Able to understand and prepare a business plan V.1.26 Undertake business plan presentation in front of donors, clients, employees Sn Skills required

8

36

32

8

14

32

28

14

10

18

40

12

16

22

44

8

12

34

26

14

16

24

20

26

High in importance

Moderate

Low/Ver y low

22

38

40

18

40

42

26 36

38 22

36 42

32

30

38

20

28

52

Entrepreneurial competences V.1.1 To understand and identify personal entrepreneurial competences V.1.2 How to manage and calculate the risk V.1.3 Able to accept responsibility V.1.4 Able to negotiate and communicate in professional manner V.1.5 To know how to make decisions Ideation competences V.1.6 To generate, assess, and select a business idea that has the potential on the market

30 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.7 V.1.8

Able to make SMART goals 18 Know how to match idea with 40 personal competences Marketing competences V.1.9 How to make effective market 22 survey and analysis V.1.10 Able to define the market needs 40 and potential V.1.11 Understand how to implement 42 the 5Ps V.1.12 Implement the importance of 76 digital marketing V.1.13 Able to create and execute a 18 marketing plan V.1.14 Enhance the selling skills 42 Organizational and production competences V.1.15 To be able to plan and describe 20 the production process flow V.1.16 Effective time management 38 V.1.17 Organize the work flow 18 V.1.18 Understand the type of costs and 12 to be able to calculate and predict costs Financial competences V.1.19 Able to understand and 4 implement pricing techniques and strategies V.1.20 Understand and read profit and 2 loss statements V.1.21 Understand and use for 6 management purpose the cash flow statement V.1.22 Understand and read the balance 4 sheet V.1.23 Understand the profitability 2 losses V.1.24 Able to undertake effective 4 financial calculations for business purposes Business planning

38 22

44 38

36

42

28

32

34

24

8

16

46

36

18

40

4

64

28 42 48

34 40 40

12

84

22

76

24

70

18

82

22

76

16

80

31 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.25 Able to understand and prepare a business plan V.1.26 Undertake business plan presentation in front of donors, clients, employees

10

28

62

18

34

48

Section VI: Upgrading your skills for becoming entrepreneur/intrapreneur – Preferred types of training delivery modes Sn

Best way for upgrading skills

V1.1.1 V1.1.2

Study by my self Participate in organized face- to -face sessions training Distance learning(online learning sessions) Combination of workshops and distance learning Benefit from the experience of others Best shown good practices and see how others are doing things.

Discuss/ exchange views with other entrepreneurs.

Others(please explain) Best way for retaining skills Learn in multiple ways(not only hearing or only reading) Teach another person what you’ve learned Ask new question that will lead to new learning Gain practical experience Look up answers that struggle to remember.

Understand how to learn the best Use tests to boost learning Others (please explain)

V1.1.3 V1.1.4 V1.1.5 V1.1.6 V1.1.7 V1.1.8 V1.2 V1.2.1 V1.2.2 V1.2.3 VI.2.4 VI.2.5 VI.2.6 VI.2.7 VI.2.8

Not preferred 22 12

Moderate preference 64 28

Best

62

34

4

66

32

2

18 22

52 26

30 52

40

32

28

8

38

54

38

50

12

32

42

26

22 62

36 34

42 4

66 60

30 30

4 10

14 60

32 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

Section VII: Let's cooperate Interest in the business training courses

Totals for the respondents

Percentages

Yes

49

98

No

01

2

More info to answer

00

0

33 GET YES 2 – February/March 2021

Annex B: Survey Questionnaire This Survey is being undertaken in order to obtain information directly from young (aspiring or existing) entreprenurs and organisations that supports entreprise creation - in the GETYES2 partner countries, with relation to their problems and needs associated with successful selfemployment, entrepreneurship and generation of jobs. The results of the Survey will guide GETYES2 Partners in better organizing and delivering training and other types of supporting services to young entrepreneurs. The Survey respondents’ identity will remain strictly CONFIDENTIAL. Section I: Personal characteristics I.1

Gender

Male

Female

I.2

Age

18-25

26-30

30-35

I.3

Educational level

15-18 Without formal education

Primary education

High School

University Level

Post-Graduate

I.4

I.5

Location I have participated on training for entrepreneurship in the past

I.5.1

If YES, what types of training?

NO Lecture or presentation course

On the job training

Apprenticeship

Other, specify:

I.6

Aspiration for Business

I.6.1

I already have established business I Intend to establish a business in the next 1-3 years I aspire to be intrapreneur - to use entrepreneurial competences in existing company

Commerce

Manufacturing

Tourism

ICT services

1-9

10-49

50+

I.6.2

I.6.3

Uganda

YES Gaining skills training

Section II: The Profesional & Business’ characteristics II.1 II.2

The Business’ Activity Sector The Business’ present size (employment)

Social services

Other services

NO, i'm the establisher of the company

II.3

II.4 II.5

Did you success your business from your family?

What was/is your decisive strength for starting a business (you can mark more options) Which type of economy you like to invest most?

YES, i'm the second or further generation of successors NO, but i will be the successor

good idea Traditional entrepreneurship - aims to

GET YES 2 – February/March 2021

competences for managing business Social entrepreneurship -

finances Circular economy -

business model Green economy - aims at making issues of reducing

it was right timing Block Chain Economy - is a scenario and potential

product

business supporters

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda create a product, service or process for which a consumer will pay

to create a product, service or process from which society will benefit

system aimed at eliminating waste and the continual use of resources

environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment.

future environment in which cryptocurrency replaces current monetary systems, potentially on a global basis

Section III: Motives for becoming entrepreneur/intrapreneur TICK the type of motive that applies to your personal case, independently of whether you are actual or intended entrepreneur (ONE answer only) III.1

What is or was your MAIN motive for opening or having a company?

III.1.1

Accumulating capital (to become rich)

III.1.2 III.1.3

It seemed a good career opportunity I thought it would be an opportunity to put innovative ideas to practice

III.1.4

My family expected me to go into business

III.1.5

I had no alternative

III.1.6

To become my own boss

III.1.7

Other (explain)

Section IV: Running a business – Expected or Experienced Problems Indicate the importance of EACH of the listed problems that you have experienced or you expect to experience, with relation to running or creation of business.

Low Type of Problem importance IV.1.1

I lack the skills and knowledge to manage the business

IV.1.2

I am not yet ready and well prepared to run the business

IV.1.3

It is difficult to manage the changes that business process is requiring

IV.1.4

I do not have the technical knowledge about starting or running some business

IV.1.5

I am not able to take over all the functions that the entrepreneur need to

IV.1.6

The process of establishing, running and expansion of business is not clear to me

IV.1.7

The process of entrepreneurship is very demanding in terms of family/friends relations

IV.1.8

Starting and running a business is very demanding in terms of bureaucracy

IV.1.9

I'm lacking a clear business strategy

IV.1.10

It is hard to recruit and grow the human resources well

Moderate importance

High importance

35 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

IV.1.11

Managing possible conflicts resulting from the business process

IV.1.12

The business lacks the organisation and division of tasks

IV.1.13

Family and business matters are complex and intertwined

IV.1.14

Family does not accept me as entrepreneur

IV.1.15

Managing costs and calculating the prices is challenge for me

IV.1.16

Financial aspects of managing a business is not my thing

IV.1.17

I'm not well prepared for the digital transformation of doing (smart) business

IV.1.18

Selling process is exhausting me the most

IV.1.19

I'm facing business related issues that I cannot manage and discuss with others

IV.1.20

Other (please specify):

Section V: Skills requirements associated with running a business – Importance and Adequacy For EACH type of skill listed below, indicate, first, how important you consider it to be in cases of running a business (indications 5: Extremely important, 1: Not at all important). Next to your “indications of importance”, rank please (as: High, Moderate or Low/Very Low), your assessment of how sufficient you feel are with relation to EACH type of skill, independently of its importance.

Type of skill required Indicator of skill’s Importance

5 - Extremely high in importance

4 - Highly Important

3 - Moderate Important

2 - Low Importance

1 - Not important at all

High

Moderate

Entrepreneurial Competencies V.1.1

To be able to understand and identify my own personal entrepreneurial competences

V.1.2

To know how to manage and calculate the risk

V.1.3

To be able to accept responsibility

V.1.4

To be able to negotiate and communicate in professional manner

V.1.5

To know how to make decissions Ideation Competencies

36 GET YES 2 – February/March 2021

Low/ Very Low

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.6

To be able to generate, assess and select a business idea that has a potential on the market

V.1.7

To be able to make SMART goals

V.1.8

To know how to match idea with personal competencies Marketing Competencies - Ensuring getting payed by clients

V.1.9

How to make effective market survey and needs analysis

V.1.10

To be able to define the market needs and potential

V.1.11

To understand how to implement 5Ps (product, price, place, promotion & person) in a marketing mix strategy

V.1.12

To understand and implement the importance of digital marketing

V.1.13

To be able to create and to be able to execute a marketing plan

V.1.14

To enhance selling skills Organization and Production Competencies

V.1.15

To be able to plan and describe the production process flow

V.1.16

Effective time management

V.1.17

To organize the work flow

V.1.18

To understand types of costs, ant to be able to calculate and predict costs Financial Competencies

V.1.19

To be able to understand and implement pricing techniques and strategies

V.1.20

To understand and read profit and loss statements

37 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

V.1.21

To understand and use for managment purpose the cash flow statement

V.1.22

To understand and read balance sheet

V.1.23

To know and understand the profitability ratios

V.1.24

To be able to undertake effective financial calculations for business purposes Business Planning

V.1.25

To be able to understand and prepare a business plan

V.1.26

To undertake business plan presentation in front of donors, clients, employees

Section VI: Upgrading your skills for becoming entrepreneur/intrapreneur – Preferred types of training delivery modes Knowledge and skills insufficiencies, may be addressed by well organised and delivered training.

What type of training you think would work better in your case? For EACH of the options listed, indicate you degree of your preference, as “Best”, “Moderate preference” or as “Not preferred”.

VI.1

Which do you consider to be the best way for upgrading your skills?

VI.1.1

Study by myself

VI.1.2

Participate in organized face-to-face training sessions

VI.1.3

Distant Learning (online learning sessions)

VI.1.4

Combination of workshops and distant Learning

VI.1.5

Benefit from the experience of others

VI.1.6

Being shown Good Practices and see how others are doing things

VI.1.7

Discuss / exchange views with other entrepreneurs

VI.1.8

Other (please explain)

Not preferred

Moderate preference

Best

38 GET YES 2 – February/March 2021

Report: Skill Gaps and Training Needs in Businesses Creation – Drucilla Balaba, Uganda

VI.2

Which do you consider to be the best way for retaining your skills?

VI.2.1

Learn in mulitple ways (not only hearing or only reading)

VI.2.2

Teach another person what you've learned

VI.2.3

Ask new questions that will lead to new learning

VI.2.4

Gain practical experience

VI.2.5

Look up answers than struggle to remember

VI.2.6

Understand how you learn the best

VI.2.7

Use tests to boost learning

VI.2.8

Other (please explain)

Not preferred

Moderate preference

Best

NO

I need more information in order to answer this question

Section VII: Let's cooperate

VII

Would you be interested in the business training coursees that will be developed by the GETYES2 project?

YES

39 GET YES 2 – February/March 2021

www.getyesproject.com

This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

GET YES 2 – February/March 2021