The Technopreneurship Formula: Promoting Alternative Career Pathways for TVET Graduates

The MinTVET Approach

By:ROBERT C. BASTILLO

Why

ENTREPRENEURSHIP

as a career pathway?

TVET and CHED Enrolment TVET and CHED Enrolment (1994-2009)(1994-2009)

CHED

TVET

1994 2009

TVET and CHED Graduates (1994-2009)TVET and CHED Graduates (1994-2009)

TVET

20091994

TVET STATISTICS, 1994-2009

• TVET graduates : 13.5 Million• Persons assessed: 3.0 Million• Persons certified: 2.5 Million• TVET graduates employed: 1.5 Million

• Absorption rate: 11.11 %11.11 %

SOURCE: CAO-TESDA

REPUBLIC ACT NO. 7796“TESDA Act of 1994”

• SEC. 23. Administration of Training Programs. - The Authority shall design and administer training programs and schemes the will develop the capabilities of public and private institutions to provide quality and cost-effective technical education and skills development and related opportunities. Such training programs and schemes shall include teacher's trainors' training, skills training for entrepreneur development and technology development, cost-effective training in occupational trades and related fields of employment, and value development as an integral component of all skills training programs.

TESDA Strategic Directions 2011-2016

NTESDP 2011-2016

Technical Vocational Education and Training for

1.EMPLOYMENT

2. SELF-EMPLOYMENT/ ENTREPRENEURSHIP

What is Technopreneurship?

• Technopreneurship is entrepreneurship that combines Technical Training (as the springboard) and Entrepreneurship Training (as the finisher) to ensure overall competitiveness and success.

• The technical training must produce a set of competencies that are certified, (or must lead to a qualification, specifically NCII)– Certification is an assurance of quality of products or

services that could be produced• Quality is the minimum requirement for a

product or service to be competitive

What is Technopreneurship?

• Entrepreneurship training ensures the success of a business venture that sells a product or service produced by someone who is certified. – It provides practical and applied tools for

determining the potential size of the business, the specific attributes of the products or services to be produced, their detailed costs and prices, and their acceptability and marketability, given competitors in the market.

What is Technopreneurship?

• The resulting product or service is one that conforms to or exceeds quality standards and is acceptable (or desired), and sellable.

• While quality standards are seen from the technical point of view, acceptability is from the customers point of view and sellability is from the total market point of view.

What is Technopreneurship?

• In other words, it is not enough that a product or service is of good quality. It has to be perceived as possessing the attributes and characteristics that the consumers are looking for, and that they must be priced, packaged, and made available in a way that makes them irresistible or easy to buy.

• Technical training alone is not enough.• Entrepreneurship training alone is not enough.

What is Techno-preneurship?

Technical Training Entrepreneurship Training

+

=Techno-preneurship

Therefore:

Technical Training +

Entrepreneurship Training=

SUCCESS

The MINTVET Formula

The MINTVET TECHNOPRENEURSHIP PROGRAM

Guarantees Success!

The MINTVET Formula• Business set-up is part of the Techno-

preneurship Training Program• The school becomes the Incubation Facility for

the business enterprises of students• Training is completed only upon the successful

set-up of the business enterprise outside of the school premises

• Students are linked to funding sources (micro-finance institutions, banks and equity partners)

• Curriculum is applied, hands on, practitioner oriented, and market based

The MINTVET Formula• Technical Training and Entrepreneurship

Training are not two separate training segments but are integrally linked phases in a continuum

• Some entrepreneurship topics start during the technical training phase

• For instance, Product Development starts during the Technical Phase but is fine tuned and completed during the Entrepreneurship Phase– during Technical Training, the student selects a

particular product or service; during Entrep Training, the attributes of this product are fine tuned based on rapid market research.

The MINTVET Formula• Technical training leading to a qualification

enables students to produce products and services that are of high quality; entrepreneurship training makes them focus on specific products or services and fine tune them according to market demands

PHASE 1 PHASE 2TECHNICAL TRAINING

1. Training on core, common & basic competencies required for qualification2. Introduction to Entrepreneurship3. Product/Service Selection

TECHNOPRENEURSHIP TRAINING

1. Opportunity Seeking2. Product

Development3. Product Costing, Pricing & Breakeven4. Sales & Promotions5. Test Marketing and

Soft Launch6. Accounting, Bookeeping & Fin.

Mgt7. Supervision & Mgt. 8. Business Set-Up

Assessment

Certification

TRAINING FLOW

TECHNOPRENEURSHIP PROGRAM 2011

YEARNO. OF

TECHNOPNO. OF

CHAMPIONS

2011 1,000 34

2012 2,000 40

2013 4,000 56

2014 7,000 79

2015 10,000 119

CHILI SAUCE

CALAMANSI MARMALADE

MOBILE COFFEE

Tarpaulin

MOBILE COFFEE

Flyer

WHITENINGSOAP

Tarpaulin

WHITENINGSOAP

Flyers

THANK YOU

Part 2 Entrepreneurship Training and Business

Incubation

Technopreneurship Program Technopreneurship Program DesignDesign

A. Demand and Supply AnalysisB. Competitive AnalysisC. Pre-feasibility AssessmentD. Initial Cost and Returns AnalysisE. Investment Requirement Estimates

A. Product Research and Concept DevelopmentB. Prototype and Process DevelopmentC. Product TestingD. Product Finalization

Module 2 –Product Development(80 hours)

A. Product CostingB. Cost AllocationC. Cost- based PricingD. Pricing ResearchE. Market Based PricingF. Variable and Fixed CostsG. Breakeven Analysis

Module 3 – Costing, Pricing and Breakeven Analysis (40 hours)

A. Sales and Negotiation TechniquesB. Promotions TechniquesC. Communication and AdvertisingD. Production of Marketing and Promotional

Collaterals

Module 4 – Sales and Promotions (40 hours)

A. Order Solicitation/TakingB. Production of Initial StocksC. Sales Monitoring and Re-order TakingD. Assessment of Sales Performance

Module 5 – Test Marketing and Soft Launch (160 hours)

A. BookkeepingB. Preparation of Financial StatementsC. Analysis and Management of Financial

StatementsD. Financial Monitoring and ControlE. Taxation

Module 6 – Accounting, Bookeeping and Financial Management (40 hours)

A. Hiring and StaffingB. Directing and SupervisingC. Managing PerformanceD. Team Building

Module 7 – Supervision and Management (24 hours)

A. Finalization of Investment Requirement B. Preparation of Business PlanC. Legal aspects of business set-up and

operationD. Business RegistrationE. FinancingF. Procurement of Assets and Working Capital

Module 8 – Business Set-Up (200 hours)

Program Schedule (In Weeks)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16Module

1 – Opp. Seeking

2 – Prod.Devt.

3 – CPBE

4 – Sales & Promo

5 – Test Mktng.

6 – ABFM

7 – Sup. & Mgt.

8 – Bus. Set-Up