02 kab final report in indonesia 2007

Ministry of National Education

Final Report of Know About Business Pilot Program in
Vocational and Technical Secondary Schools in Indonesia
2005-2006 school years

May 2007

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TABLE OF CONTENTS

1. BACKGROUND 4
2. WHAT IS KNOW ABOUT BUSINESS 5
3. THE KAB IMPACT ASSESSMENT 7
4. STUDENTS’ ATTITUDE TOWARDS ENTREPRENEURSHIP AND ENTERPRISE 9
5. FEEDBACKS FROM THE PARTICIPATING SCHOOLS 21
6. CONCLUSIONS & RECOMMENDATIONS 25

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Summary
The Indonesia Youth Employment Network has outlined a set of recommendations
aimed to enhance the role of education to further build an enabling environment for
an entrepreneurial culture to grow in the Indonesian society. Starting from an early
age, school education can stimulate young people’s awareness of entrepreneurship,
provide employment options for their future, and help students to be more creative
and self-confident in whatever they pursue as a career. At a later stage, universities
and technical schools can also integrate entrepreneurship courses as an important
part of the curriculum.

In 2005/2006, the Ministry of National Education (MONE) and the International
Labour Organization (ILO) introduced the Know About Business (KAB)
entrepreneurship training programme in the vocational and technical secondary
education system in Indonesia on a pilot basis. The objective was to determine
whether the KAB learning materials are relevant to the entrepreneurship subject
that MONE has introduced in some of its vocational secondary schools. The overall
goal of MONE along with other related ministries, in particular the Ministry of
Manpower and Transmigration (MOMT), was to encourage entrepreneurship among
the nation’s young people as well as increase their employability in order to reduce
unemployment rates and poverty in the longer term.

MONE and ILO prepared a mid-term report on the KAB Pilot Programme in March
2006. The report highlighted the challenges faced by teachers and schools in
implementing new KAB methodologies in teaching entrepreneurship education such
as the availability of teaching aids and the time allocated for pilot test. Forty-nine
schools participated and reported to MONE. At the end of the KAB Final Pilot
Programme, only 34 Schools submitted a set of complete Monitoring and Evaluation
tools due to i) natural disasters that hit area where schools were located, and ii)
students receiving KAB instructions had gone for 6 months internships.

The findings indicated that the KAB methodology was appreciated by the students.
They had fun learning about the world of business while thinking about becoming
entrepreneurs themselves. The findings also showed that students have very positive
perceptions about the world of business and that they are by no means closed to the
idea of starting their own business. On the contrary, at the end of the KAB course,
the majority of students stated that they would like to start their own business if
they had more knowledge about how to start a business and the world of business.

This shows that the youth of Indonesia, in fact, are potential entrepreneurs and that
many of them might starting their own business sometimes in the future if they
have proper educational background to make more informed decisions.

Based on these findings, it maybe concluded that the KAB learning material may be
very useful in promoting entrepreneurial culture and entrepreneurship at the
secondary education.

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Final Report : Know about Business (KAB) Pilot Project in Indonesia

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1. BACKGROUND

From 1990 to 2003, there has been an increasing trend of youth unemployment in
both males and females. A slight decrease in unemployment was, however, seen
among male youth in 2005 (Annex 1). In 2005, the unemployment rates of young
females and males aged 15-24 were 33.9% and 25.2% respectively. These figures in
2003 were 31.5% and to 25.5% respectively. The unemployment rates are highest
among those youth with senior high school education. Female unemployment has
always been higher than that of male. Over the years, this pattern has been
consistent.

Unemployment rates are still considered as the most visible and obvious indicator of
a youth employment challenge. This explains why youth unemployment rate is
selected as an indicator for monitoring the UN Millennium Development Goal to
“develop and implement strategies for decent and productive work for youth (ILO,
2004).

As part of government’s commitment to achieve Millennium Development Goals by
2015, the Ministry of National Education believes that encouraging an enterprise
spirit in young people is a pre-condition for achieving progress (at least in the longer
term) in employment, growth, competitiveness and innovation. Education can be a
major force in creating a more entrepreneurial culture.

Promoting entrepreneurial skills and attitudes provides benefits to society beyond
their application to creating new business ventures. MONE considers
entrepreneurship as general attitudes that can be usefully applied in all work
activities and in everyday life. Everyone needs to display entrepreneurial behavior
and some may become entrepreneurs.

The objective of education will include nurturing those personal qualities in young
people that form the basis of entrepreneurship, such as creativity, spirit of initiative,
responsibility, capacity of confronting risks, and independence. These
entrepreneurial attitudes should be promoted as early as possible in an education
system, and will involve active involvement in the student learning process instead
of simply absorbing knowledge from lecturer.

As part of the many strategies in responding to the challenges of youth
unemployment, the International Labour Organization (ILO) has developed a
programme called Know About Business (KAB). The development of this programme
is also linked to the ILO Recommendation No. 189, adopted in 1998, which refers to
entrepreneurship education as a way of promoting a positive enterprise culture.

The KAB package is designed for use in vocational education and training
institutions to give young people an awareness and exposure to the opportunities,
challenges, procedures, characteristics, attitudes and skills needed to become
entrepreneurial in whatever career they pursue. The KAB Pilot Programme aimed at
providing the Ministry of National Education, particularly teachers in Secondary
Vocational Schools, with student-oriented teaching methodologies to replace
teacher-oriented traditional methodologies for teaching entrepreneurship.

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2. WHAT IS “KNOW ABOUT BUSINESS”?

The KAB package is designed for use in secondary vocational education and training
institutions to give young people an awareness of, and exposure to the
opportunities, challenges, procedures, characteristics, attitudes and skills needed
for successful entrepreneurship. The general objectives of the KAB programme are
to:

o Create awareness of entrepreneurial competencies; enterprise creation and
self-employment as a career option for trainees in vocational and technical
training institutions

o Develop positive attitudes towards the role of enterprises in the society and
self-employment

o Provide knowledge and practice of the required attributes and challenges for
starting and operating a successful enterprise, particularly a small business

o Prepare trainees to work productively in small and medium-sized enterprises
and more generally for an environment in which formal, full-time wage
employment may be scarce or unavailable.

The KAB entrepreneurship education programme is a modular approach with a total
approximately of 120 hours of teaching delivered in 9 modules. The learning
materials are based on exercises, group work, games, and hand-outs. A
participatory teaching style engages students throughout the learning process. KAB
introduces, to 15 to 19 year old students, the basics of entrepreneurship through
the study of topics such as “What is enterprise?, Why entrepreneurship? and Who
are entrepreneurs in society?”

Each KAB module represents a key area of entrepreneurship and is divided into
various topics. The titles of the modules are in the form of questions. The learning
objective of each module is for the students to know and be able to explain these
questions at the end of each module. The nine modules consist of:

Module 1 What is Enterprise?
Module 2 Why Entrepreneurship?
Module 3 Who are entrepreneurs?
Module 4 How do I become an entrepreneur?
Module 5 How do I find a good business idea?
Module 6 How do I organize an enterprise?
Module 7 How do I operate the enterprise?
Module 8 What are the next steps to become an entrepreneur?
Module 9 How to prepare my own business plan?

In addition to the nine modules a Business Game is also part of the learning process
and provides students with a basic understanding of the business cycle, how supply
and demand affects a business and how to manage a business in a diverse market
with competitors, customers and suppliers. Furthermore, the KAB learning
materials also include a Trainer’s Guide with detailed session plans as well as a

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workbook for the students with worksheets and a glossary for the first eight
modules. As the final step of the KAB curriculum, students develop their own
business plans.

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3. THE KAB IMPACT ASSESSMENT

The KAB mid term report was conducted in March 2006 to get the preliminary result
from the progress of pilot test.1

OBJECTIVES OF THE IMPACT ASSESSMENT

Since the introduction of the KAB pilot test in July 2005, MONE and ILO agreed that
the objectives should be as follows:

1. Determine if the learning material content is relevant and appropriate for the
already identified entrepreneurship education syllabus2 in Indonesia

2. Determine if the specific participatory teaching and learning styles are
appropriate for the secondary vocational education system in Indonesia

3. Make recommendations to the Ministry of National Education with regard to
entrepreneurship education, based on findings and observations from
participating schools

The objectives of the impact assessment were therefore based on assessing the
above objectives through interviews and discussions with the stakeholders.

METHODOLOGY AND DATA COLLECTION

The study was conducted using a number of techniques and approaches to come up
with the required information. Qualitative and Quantitative methods were used in
collecting the information. In order to be able to assess whether the changes were
seen at students’ level could be directly attributed to the KAB learning methodology,
the impact assessment was longitudinal.
The Questionnaire for students

The students were given a form which collects detailed information (e.g. name, sex,
etc.) from students as well as about their attitudes towards entrepreneurship. The
form was completed by each student at the beginning and at the end of KAB pilot
project. This allowed to measure students’ perceptions and attitudes toward
entrepreneurship after the entrepreneurship education course, and assisted in
providing information on the impact the KAB has had on the students by comparing
their responses before and after the intervention.
The end of school year 2005/2006 coincided with the completion of the KAB pilot
programme; an evaluation form was completed by all students on the final day of the
KAB course. The students were asked to comment whether the KAB learning
materials were useful for them and whether they felt they knew more about

1
Result of the KAB Mid Term Report is available for public and can be requested from ILO Jakarta
Office
2
In Indonesia a syllabus if often referred to as “curriculum”. In other words when the word curriculum
is mentioned it is to be understood in the English context of a syllabus, i.e. a course or programme
outline without the actual content and learning materials. This is the case for the “entrepreneurship
curriculum” in Indonesia in which teachers need to find the appropriate content themselves.

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entrepreneurship. The teachers used a scoring card to compute an overall student
appreciation level of the KAB subject on a scale from 1 to 5.

The Questionnaires for Schools
A total of 32 final reports were submitted by participating schools to the Ministry of
National Education. This report gave participating teachers and schools an
opportunity to provide feedback on all aspects of the KAB pilot test with regard to
the training of teachers, the content of the learning materials and teaching
methodologies, as well as the constraints and challenges faced when delivering KAB
in the schools. This data will provide the basis for the revision of the KAB
curriculum and future implementation in Indonesia.

Focus Group Discussion for Teachers

Focus Group Discussions (FGD) were conducted at the MONE office on 23rd May
2006 with participation of selected KAB teachers from KAB participating schools and
teacher’s educators from Vocational and Education Development Center. The
objective was to further qualify the findings from the questionnaires, and get the
face to face feedback and to better understand how KAB training could have
influenced the change of attitudes and perceptions to both teachers and students.
The FGD outlined and discussed how findings and recommendations could be used
to further expand the entrepreneurship and enterprise education programme. The
overall objective would be to improve student retention and employability and
entrepreneurship skills of young people.

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4. Students’ attitude towards entrepreneurship and enterprise
start up after receiving Entrepreneurship Education

As one of the important aspects of the pilot testing of the KAB program, students
were asked to complete a baseline questionnaire on the first day they started KAB as
a subject in their school. The questionnaire was used to determine student
perceptions towards an entrepreneurial culture as well as perceptions about their
own ability and capacity to start an enterprise in future.

In March 2006, an assessment was conducted to determine student attitude
towards entrepreneurship and enterprise. A total of 3,385 students from more than
42 schools across Indonesia were chosen as the baseline for this assessment. After a
year into implementation, an assessment was conducted to see student changes in
their attitude towards entrepreneurship. A total of 1,570 students from 34 schools
across Indonesia participated in this assessment. However, due to difference in the
number of school that participated in the pre and post assessment survey, only
questionnaires from those schools and provinces were reviewed that participated in
both pre and post assessment.

The number of participating students from schools in each of the 14 provinces is
shown in the Table 1:

TABLE 1 : Students by Province

# %
North Sulawesi 221 14.1
South Sulawesi 442 28.2
East Java 105 6.7
Bali 232 14.8
Central Kalimantan 18 1.1
West Kalimanatan 75 4.8
South Kalimantan 67 4.3
South Maluku 43 2.7
West Nusa Tenggara 46 2.9
South Sumatera 69 4.4
Bengkulu 37 2.4
DKI Jakarta 18 1.1
Bangka Belitung 67 4.3
Bangka 130 8.3
Total 1,570 100.00

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Table 2 indicates the percentage of female students (66.4%) and male students
(33.6%).

Table 2 : Participating Students

It is hoped that the focus placed by the study on more female students will assist in
creating more awareness among females on the benefits and advantages of
entrepreneurship, therefore solving the problems of more female youth being
unemployed more than their male counterparts.

34%
Male
Female

66%

The age of high school students ranged from 15-17. In some schools KAB was
offered as an extra curricular course, therefore, students of various ages
participated. However, students between 15-17 years old accounted for more than
85%, students aged 15 years and below represented 0.2% while students over 17
years and represented 20.27% of the total students participating in the study.

In the 15-17 year group age, more female students participated, which was also the
case for the 18 years old age group. In the 18 years old group more male students
participated.

The breakdown of the groups by age is shown in the table below

Table 3: Age of Students

Female Male Total
15 years 9.09 5.3 8.46
16 years 37.33 5.91 31.91
17 years 39.73 43.75 41.02
18 years 13.82 23.29 17.01
19 years 1.34 5.30 2.67
20 years 0.28 0.57 0.38
21 years 0.00 0.19 0.12
22 years 0.00 0.19 0.006
Total % 100 100 100

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The students were also asked if they had ever participated in some sort of business
management training course. As shown in the table below, the total percentage of
participants in the business training was 60.3%.

Table 4: Have you participated in business training before?

No Yes
Female 39.73 60.26 100.00
Male 39.39 60.60 100.00
Total Group 39.61 60.38 100.00

39.61% of the students had not participated in any business management training
course, and these students thought that KAB had been an eye-opener in terms of
introducing them to all aspects of planning for and starting own businesses. Even
part of the 60.3% of the students that had attended management training before
indicated that KAB had provided them with more information and practical
discussions on the advantages and challenges of starting businesses.

On the question whether students knew someone who had a business, 94.01% of
both men and women indicated yes. Only a small percentage of students (5.98%) for
both sexes did not personally know anyone who had a business. These figures are
shown in Table 5.

Table 5: Do you know anyone who owns a business?

No Yes
Female 6.23 93.76 100.00
Male 5.49 94.50 100.00
Total 5.98 94.01 100.00

One of the objectives of the KAB training programme is to create awareness among
the youth about entrepreneurship. This does not always mean that all the youth
that go through the training will start businesses, but it assists to create the
understanding and appreciation about why some people run their own businesses.
It also ensures that those that do not start their own businesses will be supportive
to their relatives and friends who do. So it was very intersesting to see that 94% of
the students knew someone who owned businesses, but their understanding of the
concepts and reasons why businesses are important to the communities were still
not very clear before the training.

On a follow-up question about who they knew had a business, the majority of female
students (69.54%) knew a family member that had a business as opposed to 30.46%
for male students.

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Table 6: Who do you know who owns a business?

Sex Family Friends Others
Female 69.54 12.47 15.64
Male 30.46 22.22 20.79
Total Group 100.00 34.76 36.43

Asked whether they had helped out in a business before or after school, the majority
of both sexes said no. The female students helped out in a business at a higher rate
of 58.74% as compared to 41.25% of their male counterparts. The students were
subsequently asked about who they helped and out of all students (including those
that did not help out) more than 82% of females students and 63.42% of male
students helped out in a family business. In general, females tended to help in a
business more than the males.

Most of the micro to small businesses are started as family businesses. This is clear
from the responses of the students where 82.24% of females and 63.42% of males
indicated that they helped family businesses after school. It is hoped that the
training they received from KAB will further sharpen their interest in helping, and
encourage them to put in practise what they have learnt.

Table 7: Who do you help in a business after school

Sex Family Friends Others
Female 82.24 7.37 10.38
Male 63.42 22.18 14.40

On the question of whether they have thought about starting their own business, a
large percentage said yes (90.3 %)

Table 8: Have you ever thought starting your own business

No Yes Total
#
Female 9.69 90.37 1042
Male 9.46 90.53 528
Total 9.62 90.38 1570

Even though the main focus of the KAB programme is to create awareness about
entrepreneurship, most of the information in the materials actually discusses issues
to be thought of when starting own business. This is so that those students who get
interested in starting can already get the basics and are able to make reasonable
plans for starting their own businesses. It was encouraging to see more than 90% of
the students indicating that they have thought of starting their own businesses.
As table 9 below shows, if the students were to start a business they would like to
know how to actually do it. 97.32% completely agree or agree with this statement.

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This means that many students realise that prior knowledge is needed before
starting a new venture.

Table 9: If I am about to start a business, I want to know how to do it

I I agree I am not I disagree I Total
completely sure completely
agree disagree
Female 48.27 49.90 1.15 0.57 0.09 1042
Male 49.81 45.83 3.03 1.14 0.18 528
Total 48.79 48.53 1.78 0.76 0.12 1570

Table 10 shown the students disagreed that small business owner is underpaid
while 29.55 % are not sure with this statement.

Table 10 - Considering all the hard work most small business owners are under-paid.

I
I completely I am not I
I agree completely Total
agree sure disagree
disagree
Female
students 4.60 9.12 28.21 48.75 9.31 100
Male students 6.82 16.09 32.19 35.03 9.85 100
Total 5.35 11.46 29.55 44.14 9.49 100

The mentality that business owners do not have much work to do is very common
with the youth, who just see business owners as people who are having a good time
and making a lot of money. KAB trains students to realize that having a business
requires a lot of commitment in terms of time and money, so it is not just enough to
have a businesses, one has to work hard to make it a success.

Students are also aware of the importance of business persons in the community as
role model. Table 11 indicates that over 87% of all students admire people who are
successful in business.

Table 11: I admire people who are successful in business

I
agree sure disagree
disagree
Female
students 32.92 55.47 6.81 3.84 0.96 100
Male students 31.44 53.60 8.71 4.73 1.52 100
Total 32.42 54.84 7.45 4.14 1.14 100

When students were asked about their perceptions on the importance of small
businesses compared to large businesses, most students (43.37%) did not think that
larger business are more important in society than small businesses. A significant
percentage remains unsure (37.45%) whereas approximately 20% do think that
larger businesses are more important.

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Table 12: Large companies are more important to society than small business

I completely I am not I completely
I agree I disagree Total
agree sure disagree
Female students 6.23 10.46 38.38 36.56 8.34 100
Male students 11.74 12.31 35.61 31.63 8.71 100
Total 8.09 11.08 37.45 34.90 8.47 100

When students were asked whether they were confident to start a business and
make an effort to do so, 66.49% believed that they can do so whereas 31.40% were
unsure. It is interesting to note that a larger number of females were unsure
(35.03%) compared to 24.24% of the males. A higher percentage of the male
students asserted that they could put in the effort needed.

Table 13: I am very confident that I can put the effort for starting a business

agree sure disagree
Female students 20.92 42.32 35.03 1.34 0.38 100
Male students 23.11 49.81 24.24 1.89 0.95 100
Total 21.65 44.84 31.40 1.52 0.57 100

As indicated earlier, it is clear that more efforts still have to be made to encourage
female students to be confident about their ability to start their own businesses or to
hold a reasonable employment. This is further proven by the fact that females come
out in big numbers among people who have assisted in family businesses, they also
come out more when asked if they have thought of starting their own businesses,
but they lack the confidence of actually going ahead and doing that. More training
and encouragement is needed to help them in making these decisions.

In Table 14, more than 90% of students would be very happy to start their own
business and there is no significant difference between male and female students.
Very few students seemed certain that they would not want to start a business. This
is promising and suggests that entrepreneurship education in senior high school will
enable more students to actually start their own business later on in their life.

Table 14: I would be very happy to start my own business

agree sure disagree
Female students 45.20 45.00 7.29 2.39 0.09 100
Male students 48.48 42.23 8.14 0.95 0.19 100
Total 46.30 44.07 7.58 1.91 0.13 100

Table 15 shows that the majority of students (61.65%) think that with a great idea
and some capital they can start a business. Whereas this is partly true for 25.35%
who were not sure about these being the only ingredients for starting a business

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Table 15: To create a new business nothing more is needed than money and a great idea

agree sure disagree
Female students 22.65 38.09 25.81 11.51 1.92 100
Male students 25.95 37.5 24.43 10.79 1.32 100
Total 23.75 37.90 25.35 11.27 1.72 100

It is also interesting to see that students are aware that a good business idea is
important in starting a business. The majority agree that you need a great idea and
money to start, while an average of 25% is not very sure. This could be because the
question was asked referring to the two items; money and idea at the same time. It
is possible that the percentage could have changed if the question had separated
money and idea.
Asked whether starting a business is a more desirable career option than other
career choices, Table 16 indicates that more than 48% agreed. The males numbered
slightly more than the female students. However, Table 16 also indicates that a high
percentage (36.24%) remained unsure.

Table 16: Starting a business is more desirable than other career options

agree sure disagree
Female students 11.71 33.87 38.38 14.68 1.34 100
Male students 15.53 39.20 32.00 12.12 1.14 100
Total 12.99 35.67 36.24 41.10 3.79 100

This is interesting because it shows that students do not take starting a business for
granted. They do not think that it is an easy way out when you have nothing else to
do. It is important for students to see this as a career option that they choose
among others based on their commitment and abilities to start businesses. It is
hoped that when they make decisions to start their own businesses, they will have
looked at other available options, and made sure that the one they choose is the one
that they are committed to make a success out of it.

Table 17 indicates that 55.41 percent of all students felt that people are not
necessarily self-employed because they cannot find a job. It is interesting to note
that females students appreciated more than males on the “self-employed” doesn’t
mean not being able to find a job.

Table 17: Being "self-employed" means "not being able to find a job

agree sure disagree
Female students 3.26 8.83 28.59 42.71 16.60 100
Male students 7.19 13.64 31.44 34.09 13.64 100
Total 4.58 10.44 29.55 39.81 15.60 100

As indicated earlier, a decision to start a business should not be based on the fact
that one cannot find a job. It should be based on the interest and commitment to

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doing it, and it is encouraging to see such a strong support of the idea from the
students as shown above.

According to Table 18 most of the students believe that their past experience will
help them to start a business in the future. This seems to suggest that vocational
training may benefit them while working for other people before as well as starting
their own business.

Table 18: My past experience will help me to start a business

agree sure disagree
Female students 34.55 52.69 11.32 1.34 0.09 100
Male students 40.34 49.81 8.14 1.70 0 100
Total 36.49 51.72 10.25 1.46 0.06 100

Majority of the students have already indicated that they have assisted family
members and friends in running their own businesses. Most of them further said
that they knew someone in their lives/communities who were running businesses.
This experience will be very valuable when the students decide to start their own
businesses.

Table 19 shows that students were in some disagreement on the statement that
business owners only want to make money for themselves. A significant percentage
(31.98%) believe this to be the case while 29.04% were not sure. Almost half 40%
students disagreed with this statement

The truth is that there are many reasons why people start their own businesses. In
most cases the reasons are to make money for the improvement of life and family
situation, so it is not surprising that students were a bit divided on the response to
this question. Majority of students believe business people are only interested in
money, which in a way is true, but it is believed that a further clarification as to
what money is used for would have followed had the students been asked to do so.

Table 19: Most business owners are only interested in making as much money
as possible for themselves

agree sure disagree
Female students 7.77 20.24 30.23 30.61 11.13 100
Male students 11.74 28.03 26.70 0.18 8.14 100
Total 9.12 22.86 29.04 28.85 10.13 100

Table 20 shows that 58.59% of all students thought that those that were able to
make money when doing business should be appreciated by society, 15.59% were
not sure and 25.73% thought that this did not entitle business owners to any
special appreciation.

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Table 20: Those that make a lot of money from starting a new business should
be appreciated by the society

agree sure disagree
Female students 23.51 33.01 15.83 20.44 7.20 100
Male students 21.21 41.48 15.34 18.18 3.78 100
Total 22.73 35.86 15.69 19.68 6.05 100

One of the chapters in the KAB materials talks about the contribution by the
business people to their communities. It is good to see a lot of students agreeing that
these efforts should be appreciated. It is hoped that this will encourage them to be
part of that group of people in the near future.

Table 21 shows that 39.93% of students would rather have their own business
compared to pursuing another promising career, but 34.20% were not sure about
this and 25.85% did not agree. Male students were slightly more inclined than the
female students to have their own business. This shows that where many students
would like to pursue having their own business they did not see this as the only
career option i.e. if there are other promising career choices to be made.

A comment on this has been made in previous discussions, and it is encouraging to
see that students take starting businesses as part of the career choices, not just
something to do when there is nothing else to do.

Table 21: I would rather have my own business than pursue another promising
career

agree sure disagree
Female students 12.86 24.37 34.55 23.61 4.61 100
Male students 16.09 29.17 33.52 17.23 3.98 100
Total 13.94 25.99 34.20 21.46 4.39 100

Table 22 indicates that the students did feel some sort of admiration for small scale
business owners with 68.66% agreeing that owners of small businesses play an
important role in society. Only a small percentage of students disagreed.

Table 22: People that own and manage small businesses play very important
roles in society

agree sure disagree
Female students 18.33 49.23 26.10 5.37 0.09 100
Male students 24.43 46.40 24.62 3.41 1.14 100
Total 20.38 48.28 25.60 4.71 1.01 100

Table 23 shows that 40.89% of the students disagreed with the statement that
business owners do not care about others, i.e. their employees, whereas 29.92%
agreed with this statement.

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Table 23: Most business owners are not much caring about others

I
agree sure disagree
disagree
Female
students 8.64 19.09 29.56 32.34 10.36 100
Male students 9.09 25.18 28.41 27.08 10.23 100
Total 8.78 21.14 29.17 30.57 10.32 100
Over 40% of the students disagree with this statement, which means that most of
them think that business people do not care about others. This could be due to the
KAB training, which has opened their eyes as to how businesses are supposed to be
run, and how owners should plan for everything in theoir businesses, including
staff.

In comparison to table 23, table 24 shows that the large majority of students
(68.08%) agreed that successful business owners do care about their employees,
27.52% were unsure, and only a small percentage of 4.4% disagreed with the
statement

Table 24: Successful businesspeople care about their employees

I Total
I agree completely
agree sure disagree
disagree
Female
students 29.75 35.02 31.19 3.55 0.57 100
Male students 37.5 37.12 20.45 3.60 1.33 100
Total 32.35 35.73 27.52 3.57 0.83 100

Table 25 shows that 64.32% of the students agreed that managing a business
requires difficult planning and may not be easy. A large percent of 27.58% are
unsure about this, but almost 10% do not think this is the case.

Table 25: Starting and managing a company require a lot of difficult planning

agree sure disagree
Female students 12.96 49.33 30.61 6.14 0.96 100
Male students 18.37 50.00 21.59 8.90 1.14 100
Total 14.77 49.55 27.58 7.97 1.02 100

As indicated in Table 26, a large majority of students (79.6%) did think that small
business owners are important for the economy and for employment creation.

15


Table 26 Small business owners create employment and are therefore very
important for the nation’s economy

agree sure disagree
Female students 29.27 49.95 16.89 3.17 0.67 100
Male students 34.28 46.02 15.72 3.22 0.76 100
Total 30.97 48.63 16.51 3.19 0.70 100

This realization that small business owners create employment is encouraging as it
will encourage the students to feel that they are doing something important for their
communities when they start businesses. It is also good that they realize that all
businesses start small.

The majority of students (81.27%) also believe that their skills will help them in
starting a business, as shown in table 27.

Table 27 Overall my skills and abilities will help me to start a business

agree sure disagree
Female students 31.19 48.46 18.90 1.34 0.09 100
Male students 34.85 49.62 13.45 1.33 0.76 100
Total 32.42 48.85 17.07 1.34 0.32 100

Students in vocational schools acquire a lot of technical skills important for starting
businesses, and the information they received in KAB training continued to
strengthen this confidence by giving them awareness about the importance of
business management skills.

Majority of students realise that it is hard work starting a business, with 87.58% of
all students believing this to be true and only 12.31% either disagreeing or being
unsure.

Table 28 In order to make it as a business-owner manager you have to work
harder than others do

agree sure disagree
Female students 38.58 49.52 9.50 2.01 0.38 100
Male students 42.61 43.94 8.52 3.98 0.95 100
Total 39.94 47.64 9.17 2.67 0.57 100

This is an encouraging response as it shows that students who decide to start their
own businesses will be committed to work harder than their employees, ensuring
the success of the business.

As shown in Table 29, the majority of students (77.24%) either disagreed or were
unsure about whether having a permanent job was better than starting their own
business. However, 22.73 percent stated that they would prefer permanents jobs.

16


Table 29 I prefer a permanent job, starting a business is not for me

agree sure disagree
Female students 8.44 12.86 37.04 34.16 6.43 100
Male students 9.66 15.91 36.17 28.78 0.19 100
Total 8.85 13.88 36.87 32.92 7.45 100

Most of the materials on starting businesses have exercises that require for people
who want to start businesses to assess themselves as entrepreneurs. This is
because of the realization that not everyone is an entrepreneur. It is good to see that
some students, even after going through KAB’s awareness raising about
entrepreneuship, still do not think starting businesses would be their option. This
should not be taken as a negative response because it means that they are aware of
what is involved in starting own businesses, and have decided that they would
rather focus on other things.

17


5. Feedback from the participating schools
5.1 Students’ appreciation level toward KAB curriculum

The students were asked to comment on whether the KAB learning materials were
useful for them and whether they felt that they know more about entrepreneurship
by the end of the course. The teachers had a scoring card along with guidelines on
how to fill this card. They computed an overall appreciation level of the KAB subject
on a scale from 1 to 5 (5 being the highest score). See annexes XX

Out of 34 schools only 31 schools were able to fill the forms which ranked the
appreciation level from the students. Students from 13 schools ranked between 3 to
4 and 4 to 4.5 and 4 schools ranked above 4.5. This means that overall appreciation
towards 5 statements above were between very good and good.

Table 30: Appreciation level by students

14

12

10

8

6

4

2

0
Rank below 3 Rank between 3-4 Rank between 4 - Rank above 4.5
4.5

This is a satisfactory score, seeing that students felt they had learnt more about
entrepreneuship from KAB training. There are some other factors which could have
contributed to the scores not being the whole 5, and these can be found from the
questions asked to teachers as shown below:

Along with the appreciation level by students, teachers were also asked few
questions which referred to

a. What were the challenges faced during the KAB Pilot Program in your
school?

1. Time Constraint:
Most of participating schools felt that the time allocated for KAB Pilot Program was
not sufficient. While KAB requires 120 hours, the allocation time during Pilot
Program was only 60 hours. In some provinces, teachers stated that Provincial
Authority had different policy on the number of holidays which affected the delivery
and learning process. Schools implemented Pilot Test KAB in grade 11 faced similar
challenges; they could not finish Module 1-8, as students had to go on the job
training for (6 months to 1 year).

18


2. Limited teaching visuals and KAB Learning Material

Teachers felt that teaching aids and visuals were not sufficiently provided. The
allocation of KAB learning material also did not match the number of students who
participated in the pilot programme.

3. Issue of translation

The first version of KAB was translated directly from English to Bahasa Indonesia
with less time on the adaptation thereby caused some confusion. The English
version was not made available at the school level which made difficult for teachers
to check Indonesia and English version.

4. Monitoring and evaluation forms required additional budget

The schools had to print the Monitoring and Evaluation Forms using their own
budget. There was no option for them to use the funds from internal school
management funds. Clear direction and letter from the Ministry of National
Education was needed to re-allocate funds.

5. Limited linkage with entrepreneurs
The Know About Business involves an interactive methodology such as interviewing
entrepreneurs. Some schools expressed that they do not know how to get assistance
from entrepreneurs.

6. Indicator competency of Know About Business

Schools mentioned their challenges when it came to measuring the students’
competency at the end of the KAB course. How to measure and what indicators of
student success should be used were some of these challenges.

b. What were the levels of appreciation by students?
Students’ appreciation on the teaching methodology was very high. This was a result
of teachers using different teaching methodology as suggested in the KAB Modules
such as group discussions, role play, business games, etc. In Palembang, South
Sumatra, several students were being asked at the end of the KAB what they want to
do after they graduated from schools. Teachers reported that before KAB, they said “
I want to work in Company A, etc” and after receiving KAB, the students said “I want
to open my own business in the future”

Teachers indicated by using KAB Methodology and Learning Material, students were
very motivated to participate through group discussion, question and answer,
observation, group home work, business simulation, etc.

c. What would you recommend to make the KAB subject more appropriate
for schools in Indonesia?
Additional materials appropriate for students are necessary to teach KAB effectively.
The KAB Learner Workbook is not sufficient for students since it only captures the
student activities through homework. Therefore students need additional reading
material as reference.

19


KAB should be taught during regular teaching hours and not as an extracurricular
activity since it requires 120 hours of teaching. Teachers also thought that the
learning process will be much effective if 2 persons deliver KAB in classroom, one
teacher can the main trainer while and the second can co-facilitate.

d. Why do you think the KAB should become Learning Material for
Entrepreneurship Curricula for secondary high school students in Indonesia?

Teachers stated that KAB is a minimum requirement for students to be independent
in facing future life, workplace and competition. According to them, KAB is basic
knowledge to open the mindset of student toward entrepreneurship. The teaching
methodology of KAB plays important role in making entrepreneurship fun and
students interested to be active and participative.

5.1 OBSERVATION FROM FOCUS GROUP DISCUSSIONS

In general teachers felt that few corrections on the translation of KAB learning
material including make it into reader friendly is important. Teachers also felt that
the facilitator handbook should be strengthened and make it practical especially in
the mainstreaming gender in the classroom. Teachers also suggested if the MONE
and ILO can develop more alternative learning sessions on entrepreneurship using
student centred learning activity.3 If possible this can be supplemented by a
“reader’s companion” of additional materials which should take into account the
situation of most disadvantaged schools, teachers and students.

With regards to teaching skills improvement, teachers felt they had a much better
knowledge and skills on teaching methodology. At the beginning of the pilot teachers
were not sure whether they could implement student centred learning, however with
the assistance from 6 VEDCs and ILO, teachers improved their confidence and enjoy
using the new teaching methodology.

Most teachers felt that initial 2 weeks Training of Teachers is a good introduction
but more “coaching” and “after training support” is needed to ensure that all aspects
of introduction, including monitoring, evaluation and reporting are effectively
contributed by teachers. The existing delivery mechanisms can be built on and new
ones might need to be considered, e.g. interactive CD for self-learning, Radio and
education TV, face to face refresher training, mentoring of teachers by
entrepreneurs. An interactive teaching methodology that is more facilitative and
motivational, for both teachers and students. Existing materials can provide
supplementary information. Teachers delivering KAB can also become more
entrepreneurial in both their thinking and teaching practices.

In term of building the entrepreneurial culture teachers felt that KAB Modules 1 to 4
cover both the importance of entrepreneurship and the introduction of core work
skills and “employability” is introduced as well. It serves as a good introduction.
However, teachers suggested that when the revision of KAB will be conducted, more
sessions should be added to strengthen the entrepreneurial activity and combine
Module 9 (Business Plan) into Module 8 since SYB will also be introduced in the

3
It is based on Experiental Learning Cycle methods where students practice and do exercise, shares
their experience in doing the exercises and summarize the findings.

20


schools.

The issue of Knowledge test to measure the improvement of knowledge – at present
the pre- and post-test focuses on perceptions and attitudes whilst the knowledge
test focuses on measuring understanding of the content. The missing component is
on “personal traits” for self-assessment of entrepreneurial and non-entrepreneurial
attitudes and aptitudes.

While the impact assessment all done by MONE and ILO and left no room for
teachers to do their own impact assessment and understand what it means. It is
necessary to build the capacity of teachers to understand the result and use it to
help students understand their own potential.

With regards to the Monitoring and Evaluation system teachers felt that it needs
clear articulation and step-by-step instructions for various stakeholders, e.g. MoNE
M&E Unit, Provincial and District administrations, Principals, Teachers, etc.

Finally the focus group discussions also suggest that it is necessary to have other key
stakeholder including students themselves and parents aware of the importance of
entrepreneurship education for young people in preparing them for future career.

21


6. CONCLUSION AND RECOMMENDATIONS:

• KAB Training of Teachers, which is being initially conducted for two weeks, is
a good introduction but more “coaching” and after training support is needed
to ensure that all aspects of teaching methodology and knowledge on
entrepreneurship can be maximized. The approach and methodology for this
type of coaching and mentoring should be developed in a cost effective
manner with the assumption that in-house training can not be conducted on
regular basis.

• Know About Business should be considered as life learning material where
the objective of each topic should be followed while the suggested activities
can be allowed to be flexible to be modified by teachers to be
appropriate/relevant for his/her classroom.

• The teachers appreciated the ILO Business Games (during the pilot
programme, Start And Improve Your Business Games became part of KAB
Learning Component) and it has created a lot of enthusiasm among
students. However, there is need to simplify and create additional KAB
Business Games by taking into consideration the cost of the games and the
capacity of the schools to buy the games. In countries where KAB is being
introduced without sufficient financial support from the donors, guidelines
on how to administer the “Hat Making Game” has been initiated. This
approach can be used by the Ministry of National Education and ILO to
introduce inexpensive games without reducing the learning objectives of the
games.

• The importance of entrepreneurship teaching should be acknowledged in the
national curriculum. Specific programmes have a legal framework. This will
greatly contribute to increasing the motivation of schools and teachers to
take up this type of initiatives. In this regard, the Ministry of National
education should respond on the importance of legal basis for wider
introduction of Know About Business in Vocational Secondary Schools in
Indonesia.

• The revision of KAB for Indonesian context is necessary to make KAB more
appropriate with Indonesia Entrepreneurship syllabus. It is also important to
customize and localize KAB using local wisdom exist at the provincial level.
This local wisdom normally describes cultural and natural resources
strengths which have not been optimized for the welfare of the community.
The other issue is to strengthen the facilitators handbook to cover more
practical approach to mainstream gender in the entrepreneurship education
and develop supplementary materials for teachers consist with the collection
of different modern teaching methodology and simulations.

• The provision of specific training for teachers need to be greatly enhanced, as
its current insufficiency creates a major obstacle to the implementation of
the entrepreneurship education programmes and activities. If teachers are

22


not adequately trained, motivated, and provided with on-going support, little
progress can be achieved in this area.

23

This report was compiled in partnership with Ministry of National Education under
the Directorate of Vocational and Secondary Education.

24

02 kab final report in indonesia 2007

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