Competency-based Economies through Formation of Entrepreneurs (CEFE)

CEFE in BRIEF

THE CEFE NEW BUSINESS CREATION CONCEPT:

CEFE (Competency based Economies through the Formation of Enterprises) promotes the creation of micro, small and medium enterprises and upgrading of existing ones through the systematic development of entrepreneurs and through adequate techno-managerial input to start and operate an enterprise.

CEFE philosophy evolves from the realization that while entrepreneurs are neither born nor made, potential entrepreneurs can be developed and stimulated to start their own businesses through appropriate interventions. Its philosophy does not believe in spoon feeding entrepreneurs but strongly supports the full development of the potentials and capabilities of independent minded and self-confident entrepreneurs who can successfully exploit business opportunities and overcome obstacles in the environment.

The CEFE approach of training entrepreneurs has some unique features and is based on the following concepts (CEFE training ladder):

 If entrepreneurs want to succeed, they should be aware of their personal qualities, competencies and their surrounding environment in order to develop appropriate strategies before embarking on any entrepreneurial activity ( Module 1: Unlocking Entrepreneurial Competencies)
 Entrepreneurs based on their competencies have to identify, select their own projects which they are convinced to be feasible and can be carried by themselves (Module 2: Matching of Person with project)
 In order to succeed in any business, entrepreneurs have to make a study on their own, test their ideas, judge the viability of their projects and prepare a business plan based on their own circumstances, decisions and findings (Module 3: Business Planning)
 If entrepreneurs are competent and confident enough to implement their projects and if their projects seem viable, they should be supported by finance and other types of assistance (Module 4: Presentation of Business Plans to Bankers/Experts)

THE CEFE METHODOLOGY

CEFE uses experiential learning methods to develop and enhance the entrepreneurial competencies and capabilities of would be trainers so they will in turn train potential and existing micro, cottage, small and medium entrepreneurs using the CEFE approach.

The CEFE is anchored on methodologies which require participants to play an active role in simulated business games and structured learning experiences. There is a minimum of lectures and a maximum of experiential learning exercises, hence transforming the training room into a microcosm of the real business world. The methodology enables the participants to discover for themselves the learning points of entrepreneurial values, the search/selection of indigenous business ideas, and internalize their application into their own environment.
 

CEFE in DETAIL 

The National Centre for Small and Micro Enterprises Development (NCSMED) has been mandated by legislation in Fiji under the Small and Micro Enterprises (SME) Act 2002 to develop, promote and support SMEs, especially for the benefit of economically and socially disadvantaged groups, including women and young people.

In the past, programmes and projects aimed at assisting and promoting SMEs have been piecemeal, heterogeneous and discontinuous. The Centre does not have the financial and human resources to handle SMEs directly, hence, its strategy is to work with and through institutional proxies selected on merit throughout Fiji.

One of the Centre’s aims is to intensify and expand programmes for training in entrepreneurship and business management. The challenge for the Centre is to become the ultimate professional authority and reference point for all matters relating to SMEs. It is the expressed need of NCSMED to make a quantum leap in business training in Fiji, particularly in the informal sector of the economy.

Using the CEFE methodology, NCSMED aims to strengthen local trainers’ skills which would enhance the effectiveness of their service delivery, whilst at the same time, develop / improve entrepreneurial skills of SMEs, utilizing the experiences made by our Philippine counterparts, who are three licensed international CEFE Trainers who conducted the first CEFE Training of Trainers (ToT) in November, 2003.

Background to CEFE

It is a fact that there is a dearth of entrepreneurs, mainly indigenous entrepreneurs worldwide. The lack of effective entrepreneurial activity is considered a serious constraint in industrial and economic development. The few who get into this limited circle usually travel via long difficult routes. Many entrepreneurs set up ventures with high determination and enthusiasm but are generally unprepared to counter inhibiting factors. While environmental and personal factors have been largely responsible in the success or failure of entrepreneurs, it has become evident that conducive factors can be developed and that outside facilitation, like special credit facilities or entrepreneurship training, is not only useful, but necessary if methods and approaches are used which focus on the development of the environment and its economic actors in their ability to become successful entrepreneurs.

Based on this, GTZ (German Agency for Technical Cooperation) has developed an enterprise and entrepreneurship model called Competency based Economies through Formation of Entrepreneurs (CEFE) which is a person centered approach towards promoting and developing competent and productive initiatives in the area of micro, small and medium enterprises. In the Philippines, the Philippine CEFE Network Foundation, Inc. (CEFENet) is charged with the usage and further development of CEFE methodology. CEFENet is a nationwide network of trainers and development specialists. NCSMED thereby commissioned CEFENet to conduct the 1st CEFE ToT in Fiji.

The CEFE Concept

CEFE promotes the creation of micro, small and medium enterprises and upgrading of existing ones through the systematic development of entrepreneurs and through adequate techno-managerial input to start and operate an enterprise. It is an excellent complement to technical skills training.

CEFE philosophy evolves from the realization that while entrepreneurs are neither born nor made, potential entrepreneurs can be developed and stimulated to start their own businesses through appropriate interventions. Its philosophy does not believe in spoon-feeding entrepreneurs but strongly supports the full development of the potentials and capabilities of independent minded and self-confident entrepreneurs who can successfully exploit business opportunities and overcome obstacles in the environment.

The CEFE Methodology

CEFE uses experiential and action learning methods to develop and enhance the entrepreneurial competencies and capabilities of would be trainers so they will in turn train potential and existing micro, cottage, small and medium entrepreneurs using the CEFE approach.

CEFE is anchored on methodologies which require participants to play an active role in simulated business games and structured learning experiences. There is a minimum of lectures and a maximum of experiential learning exercises, hence transforming the training room into a microcosm of the real business world. The methodology enables the participants to discover for themselves the learning points of entrepreneurial values, the search/selection of indigenous business ideas, and internalize their application into their own environment.
For more details, click on http://cefe.gtz.de or http://www.cefe-international.net.

CEFE Products

There are many CEFE training products available in the CEFE market.
It also includes sector-specific business games such as ENTREFARM, ENTREFISH and ENTRECRAFT.

Basically, CEFE addresses two groups of people :

1. existing and potential entrepreneurs, to improve their competencies and enhance their achievements
   
2. personnel of enterprise support institutions and banks, to assist them in rendering more efficient services to the SME sector and creating an environment more conducive to SME enterprise growth.

CEFE Products in Fiji

The CEFE product that NCSMED has introduced via the ToT is the CEFE New Business Creation Course – a programme designed for potential and new entrepreneurs who are planning to put up a business. At the end of the course, participants will produce a business plan based on the project idea they have selected. This course, contains four modules which can also be offered in modular forms. In addition, two learning tools were also introduced in the ToT which is the BEST GAME and ENTREFARM.

BEST GAME is where participants experience the effects of their business decisions in a simulated environment whilst the ENTREFARM game is a training tool designed for the agri-based sector teaching farmers to view farming as a business.

CEFE has a proven track record, having been introduced worldwide in more than 100 countries since 1979. As at April 2003, CEFE has been introduced and practised in around 127 countries by 1643 organizations through 332 projects in Asia, Africa, Latin America, Pacific Islands and Eastern Europe. There are 3042 CEFE trainers and 387 funding agencies have supported the conduct of CEFE programmes. Also, the impact of the CEFE approach have been measured world-wide with excellent results. For more details, click on http://cefe.gtz.de or http://www.cefe-international.net.