Vouchers for Skills Training: A Tool for Small-scale Enterprise Development
Project / Program Summary

1. Objectives
   
   The objective of the proposed funding would be to develop a case study and an ongoing impact evaluation of a voucher skills training program which is being implemented under the Kenya Micro and Small Enterprise Training and Technology Project. The voucher program is the basis for the development of a demand-driven skills training program for micro and small enterprises and the voucher mechanism is now being extended to also cover technology assistance and business development services for high potential growth-oriented micro and small enterprises.
2. Activities / contents
   
   Over the next four years until project completion, the case study would carefully track the performance of the project and its impact on micro and small enterprises' growth and employment. A case study and survey team would undertake.
   
   (a) A qualitative review of the functioning of the voucher system and the involvement of various project beneficiaries and participants, including existing enterprises, start-up enterprises, training providers (mastercraft workers and public training institutions), and allocation agencies.
   
   (b) A quantitative impact study, Impact on firm productivity, income and growth, and impact on firm employment.
3. Expected outcomes / impacts
   
   An important expected outcome/impact of the proposed case study is to a) provide careful documentation of how the voucher system actually functions and how over time it is modified to ensure the quality of training, broader outreach, and financial and non-financial accountability; b) evaluate the extent to which skills training has a positive impact on micro and small enterprise income and asset growth and employment creation, especially in relation to other types of assistance; and c) evaluate the impact of the program on the development of private training providers and the availability of financial and non-financial business services to small enterprises.
4. Features in line with the Agenda for Action
   
   The project is a private sector based poverty-focused intervention, which has important lessons for replication into other parts of Africa and the World.

Private Sector and Finance Group, Africa Region, World Bank