Enterprises Development

Preamble 

The most common characteristics of Small, Micro and Medium Enterprises (SMMEs) are lack of business management skills and unfamiliarity with management techniques to deal with problems of an enterprise.  These include poor or lack of financial and non-financial record keeping, inadequate internal administrative controls, lack of marketing knowledge and skills, inefficient production systems, lack of financial control systems and, a general dearth of business acumen, sensitization to the business culture and inability to handle market shrewdness.

In order to address this situation, the department of Enterprise Development (ED) conducts feasibility studies, investigates, formulates and facilitates the establishment and expansion of Basotho owned business undertakings.   These are conducted through the provision of business management entrepreneurial training, technical training for small manufacturing projects, design appraisal, monitoring and problem diagnosis of projects, as well as assisting the SMMEs to access financial assistance.  The department has also embarked upon the modern techniques to strengthen their project profiling through networking with institutions that do similar work and, information gathering by using the Internet.

TRAINING PROGRAMMMES

Background

The Training programmes are focused on being simple, practical, enlightening and problem solving.  They are results driven because they are based on surveyed and identified needs.  The practicality of these programmes is manifested by the follow-ups and the guidance offered to enterprise owners or their managers.

Programmes on Offer

The Training Programmes are categorised into two disciplines: 

Entrepreneurial Training is aimed at developing effective management of Basotho businesses to enhance growth and sustainability of businesses and to promote innovativeness amongst the entrepreneurs with a view to establish the new enterprises.

Technical Training is for existing entrepreneurs and the prospective entrepreneurs in businesses that require technical skills like carpentry, sheet-metal and sewing.  The department is currently operating in three sub-sectors; garments making, wood and metal work.

Other Training Programmes

There are specialised programmes which have been necessitated by the on-going privatisation programme.  One of the impacts of privatization is the retrenchment of employees.  Among these employees are those who opt to start new businesses as an alternative to re-employment.  These employees are also our target, however some of the needs of retrenchees are to seek new employment and/or personal finance management skills. 

The retrenched groups are offered courses in:

• Starting new business

• Personal finance management

• Job-search and interview techniques

Location 

All entrepreneurship programmes are available in the main centers of the country.  The technical entrepreneurship training courses are available in four BEDCO Centres in Maseru, Mafeteng, Mohale’s Hoek and Leribe districts.

Fees

Our fees are concessionary and available on enquiry.

Duration

Start Your Own Business                            -           12 weeks

Training for existing business owners     -           minimum 5 days

There are also one-day seminars for existing businesses.

For further information contact:

Enterprises Development – Director        -           Tel. (+266) 312094

Entrepreneurship Training Manager        -           Tel. (+266) 312094

Address:

                        P.O. Box 1216
                        Maseru 100
                        Lesotho

E-mail:           etd@bedco.org.ls
                      ed@bedco.org.ls

ENTREPRENEURIAL TRAINING AND DEVELOPMENT 

AIM

Entrepreneurship Training and Development (ETD) endeavours to develop and strengthen entrepreneurial talent and skills of Basotho entrepreneurs through a range of need-based, entrepreneurial training programmes.

PROGRAMMES OFFERED

We offer impact training, consisting of needs survey and analysis, development and implementation of need-based programmes, follow-up and advice where necessary.

ETD offers core training programmes namely, Start Your Own Business (SYOB) and Business Management (for existing businesses).  The division also offers ancillary programmes, which are tailor-made for those employees of parastatals earmarked for privatisation, and technical training to unskilled and skilled individuals in the fields of welding, woodwork, garments production and tailoring.

Start Your Own Business

·        Objective

To equip aspiring entrepreneurs with the skills which would help them to :

• develop viable business ideas and

• start and manage sustainable businesses.

 ·        Content

• Entrepreneurship

• Attributes of successful entrepreneurs

• Formulation and research of a business idea

• Opportunities and threats of the business environment

• Business Management

• Development of a business plan

·        Target Groups

• Retrenched workers

• Aspiring entrepreneurs

·        Methodology

• Experiential learning.

• Group discussions

• Role-play

• Presentations

·        Duration

20 days (4 weeks)

Business Management Training for Existing Businesses

·        Objectives

• To instill entrepreneurship talent in order to stabilise and stimulate    growth of existing enterprises.

• To improve business management skills

·        Content

• Role of an entrepreneur to the economy

• Business Management

• Preparation of business plans

• Planning for expansion and diversification

·        Target Groups

• Small, Micro and Medium Enterprises (SMMEs)

·        Methodology

• Experiential learning

• Role-play

• Plenary sessions

• Group work

• Group presentations

  Duration

• Five (5) days

Ancillary Programmes:

1.1              Financial Counselling:

·        Objective:

To guide and encourage participants in planning and managing their personal and /or family incomes.

·        Content:

• Setting objectives

• Control and management of personal/family expenditure

• Savings and investment decisions

• Budgeting

·        Target Groups

• Employees of parastatals earmarked for privatisation

• Retrenched mineworkers

• Other individuals or groups

·        Methodology

• Experiential learning

• Group discussion

• One-to-one discussions

• Group presentations

·        Duration

• Two (2) days

Job Search Skills Training

·        Objective

• To equip participants with skills and techniques which would enable them to compete in the highly competitive job market.

·        Content

• Realise and analyse personal skills

• Sources of information (job mail)

• Written response to advertised posts – application letter

• Prepare a winning CV

• Interview

·        Target Groups

• Employees earmarked for privatisation

·        Methodology

• Exercises

• Plenary sessions

• Group discussions

• Group presentations

• Individual work

·        Duration

• Two (2) days

VENUE:         Training is offered at a location convenient to the client.

COSTS:         Training is provided at market-driven costs.  However, the costs

                        vary according to clientele and intensity of training offered.

TECHNICAL TRAINING

Synopsis of Metal Work                            (Duration - 3 months)

Purpose

To offer basic training in gas/arc welding and sheet metal work to the equivalent of grade “C” of the trade testing board of Lesotho.

Target group

 Unskilled and skilled entrepreneurs who wish to venture in metal work business

Minimum requirements

Standard seven ability to read and write

WELDING SECTION    

A.        WELDING THEORY:

• Safe working procedure
• Material technology
• Types of welding
• Testing
• Technical drawing
• Use of measuring tools
• Cutting
• Standards
• Basic business management

B.        WELDING PRACTICAL

• Setting out tools
• Preparation of weld shape
• Arc-welding in all direction
• Gas welding in all directions

SHEET METAL SECTION

COURSE CONTENT

A.        SHEET METAL WORK THEORY

The theory is related to the processes and equipment used in the sheet metalwork practical syllabus. This will also cover the use and properties of different materials i.e. (material technology).

            More emphasis is in development as in B below.

B.         SHEET METAL WORK PRACTICAL

• Setting out tools

• Cutting

• Bending

• Rolling

• Chiseling

• Swaging/ Wiring/Beading

• Basic development

• Basic business management

VENUE

MAFETENG:                        BEDCO COMMERCIAL AND TRADE CENTRE

Synopsis of Woodwork   (Duration 6 months)

Purpose

To introduce trainees to basic woodwork

Target Group

Unskilled and Skilled Entrepreneurs who wish to venture into woodwork business

Minimum requirements

Standard seven/ability to read and write

COURSE CONTENT

A.        THEORY

·        Setting out tools

·        Timber technology

·        Calculations

• Joints

• Technical drawing and designing

• Machine parts, service and use

• Basic business management

B.        PRACTICAL

• Joints

• Small projects with hand tools

• Use of hand tools and machines

• Basic roofing

• Carpentry

• Ceiling

• Flooring

VENUE:

MAFETENG:                        BEDCO INDUSTRIAL AND COMMERCIAL CENTRE

LERIBE:                                BEDCO INDUSTRIAL AND COMMERCIAL CENTRE

Apprenticeship Training Course                         (Duration 2 Years)

Purpose

To meet the needs of fresh graduates from local technical institutions.

Target Group

Graduates from local technical institutions wishing to go into furniture manufacturing business

Minimum requirements

Certificate in woodwork

COURSE OBJECTIVES

• Upgrading of practical skills

• Introduction into modern furniture design

• Efficient work planning

• Precise and accurate execution of jobs

• Development of cost-consciousness

• Achieving and maintaining defined quality standards

• Job administration

• Customer care

• Concepts of business management

COURSE CONTENT

• Figuring of material, cutting lists and quotations.

• Quality and stock control

• Workshop management and supervision

• Technical drawing and designing

• Roofing calculations

VENUE

MASERU:                 SEBABOLENG TRADE AND INDUSTRIAL CENTRE

Garments Production

Type of course                                             Duration

1.  School uniforms                                     8 weeks

2.  Fashion wear                                           6 weeks

3.  Windbreakers                                         4 weeks

4.  Bed linen                                                 6 weeks

5.  Tailoring                                                  8 weeks

Purpose

To equip trainees with garments production skills

Target Group

Unskilled and skilled Entrepreneurs who wish to venture into garments production business.

Minimum requirements

Standard seven/ability to read and write

COURSE CONTENT

• Measuring

• Use of Yellow Ruler

• Drafting

• Patterns

• Cutting out

• Laying out on material

• Machine parts, service and use

• Seams

• Fastening

• Sleeves

• Pockets

• Renovation of garments

• Ironing and pressing

• Basic business management

VENUE:

MASERU:                             SEBABOLENG TRADE AND INDUSTRIAL CENTRE

MAFETENG:                          BEDCO INDUSTRIAL AND COMMERCIAL CENTRE

LERIBE:                                BEDCO INDUSTRIAL AND COMMERCIAL CENTRE

MOHALE’S HOEK:                BEDCO INDUSTRIAL CENTRE

For Course Tuition details, please contact the BEDCO Entrepreneurship Training and Development division at:

ETD
BEDCO
P.O Box 1216
Maseru 100

Tel: (+266) 312094

etd@bedco.org.ls

PROJECTS DIVISION

The projects division translates entrepreneurs’ business ideas into projects through feasibility studies, development of business plans, and appraisals of such projects.  Above these, the division has to solicit funding for entrepreneurs and corporate investment activities. 

Comprehensively, the division performs the following: 

Feasibility Studies

The department conducts projects feasibility studies at a fee.  These projects could be from all the socio-economic sectors in the country, but they should have a direct or indirect benefit for the Lesotho citizens.

Development of Business plans

Prospective entrepreneurs bring in their business ideas from which business plans are developed.  In the process, consultations and/or interviews with these clients are made, particularly to determine client integrity, his abilities and to inform him of his obligations if financial support is granted.

After development, these proposals are presented for financial assistance before BEDCO management and/or financial institutions.

Projects Appraisal

All developed business plans and projects are appraised to determine their economic, technical and financial viability.  In concert, the following information should be verified, client integrity, availability of skills, especially entrepreneurial and managerial skills, success/growth potential of the entity, and whether the business would be sustainable.

With this information, officers can advise or recommend changes in the project formulation and/or implementation modalities.

Corporate Investment Projects

Other than these, the department is also responsible for formulation of corporate capital investment projects.  These are prepared for income generation purposes, sustenance and to solicit offshore funding for the corporation.

FINANCING

Credit Schemes

BEDCO administers credit schemes as and when it is called upon to do so by the Funds.  However, we also have a BEDCO Credit Financing scheme, whose activity depends solely on the availability of funds. 

The current ongoing credit scheme that is being administered by us was funded by the Government of Lesotho to promote the local economy through the Small, Micro and Medium Enterprises (SMMEs).   In addition, the scheme was adopted as a relief fund for the SMMEs that were affected by the 1998 riots.  This scheme is popularly known as the ‘Micro Financing Scheme’. 

BEDCO Credit Financing

The main objective of this scheme is to promote Basotho entrepreneurs and to boost the local economy by developing the private sector.  The scheme provides better access to funding relative to local financial institutions.  As a prerequisite, applicants should go through business management training.  This is to ensure proper management of the funds as and when they are disbursed, and to equip the prospective entrepreneurs with the necessary skills to ensure success. 

The maximum loan amount and repayment period for the scheme are M500 000.00 and five years (60 months) respectively.  The other loan repayment terms are market driven and set accordingly.

The scheme has specific loan requirement criteria. These have been adapted to all the other schemes administered by us. Additional requirements are incorporated where necessary to accommodate the objectives and purposes of the particular schemes.

Loan Requirements

• Applicant should be a Mosotho aged 18 and above
• Applicant should bring certified copies of their passport
• Applicant should be in possession of a Traders License
• Applicant should be in possession of Articles of Incorporation
• In the case of a partnership, applicant should show a Deed of Partnership, and show that the majority shareholding is in the hands of Lesotho citizen(s), i.e. 51%
• In the case of a company, applicant should show that the majority shareholding is in the hands of Lesotho citizen(s), i.e. 51%
• Applicant should be operating in the following Business sectors; Manufacturing, Construction, Retail or Service
• Applicant should be in possession of quotations from prospective suppliers.

Micro Financing

The scheme was formed with a M5 million fund, bestowed by the Government of Lesotho to the Ministry of Industry, Trade and Marketing.  BEDCO was assigned by the Ministry to oversee the administration of the fund. 

The objective of the fund is to develop the Small, Micro and Medium Enterprises (SMMEs) sector, by providing increased access to credit finance with the view to create employment and contribute towards poverty alleviation. It is the goal of the fund to assist medium to long-term start-up and those already operating with bankable projects.  The fund aims to assist these entrepreneurs by offering start-up loans on concessionary terms.  Particularly, the fund is established to address the shocks to the SMMEs sector, caused by the 1998 political unrest. The short-term priority of the fund albeit, is to rehabilitate the SMMEs that were adversely affected by these riots. This however, should not deter prospective and aspiring entrepreneurs from applying under the scheme.

The scheme is currently operating under a dual facet, the Short-term/Bridging and Long-Term Finance.

Short-term/Bridging Finance

This type of financing is specifically catering for contractors. The motive being the huge costs they normally have to incur in order to provide the services, and the lag between rendering the service and receiving payment for such services.  It was meant to give the contractors the start-up needed to perform or render services.

Terms

Maximum Loan amount                 M 50, 000.00                                                 

Minimum Loan amount                 M 500.00

Maximum Repayment Period       Four (4) months

Interest rate                                       27% per annum

Application Fee                                M 20.00

Long-Term Finance

This type of financing is mainly aimed at all the other entrepreneurs who have long-term projects, and who would be unable to meet the payments in the short period that is required above.  Moreover, it helps entrepreneurs who have financially viable and socially sound projects, who could not otherwise get a loan from the commercial banks.

Terms

Maximum Loan amount                 M 50, 000.00                                                 

Minimum Loan amount                 M 500.00

Interest rate                                       15% per annum

Application Fee                                M 10.00

The terms for the loan repayments are concessionary yet market orientated. Each application shall be considered on merit and the terms set accordingly.

Additional Loan Requirement

• Applicant should be in possession of Proof of loss as a result the 1998 political unrest (where applicable).  The proof can be in the form of a testimonial from the Commissioner of Police, an Affidavit from the Micro Finance department at BEDCO.

After Submission, What Next?

• The Applications are submitted to the office of Micro Finance at the BEDCO Head Office at Sebaboleng 
• The Micro Finance department will review the applications and verify that all the necessary documentation is submitted before the application can be considered
• The applicant will then be assigned a Projects Officer, who will open a file and assess the viability of the proposed project and help the applicant construct a plausible project proposal
• The assigned Projects Officer will then present the proposal to the BEDCO Management on behalf of the applicant
• After assessment by the Management Team, the proposal will then be presented to the Approval Committee for approval. The committee comprises of the BEDCO Management Team and the representatives from the Ministry of Industry, Trade and Marketing
• Applicants will then be contacted with the results of the Approval Committee

If approved, funds shall be disbursed by BEDCO accordingly.

Download the Application Form Now!!!

Contact us at: ed@bedco.org.ls

Postal Address:

P.O Box 1216
Micro Finance Department
BEDCO
Sebaboleng

Tel:  (+266) 312094 ext.214/5

Physical Address:

BEDCO Head Quarters
Sebaboleng Trade and Industrial Centre
Maseru

MONITORING SECTION

Background

Monitoring is perceived as a systematic and continuous process of following up and keeping track of events, using performance indicators to ensure that projects are proceeding accordingly and modified where necessary. The monitoring section was established within the Department of Enterprises Development with the aim of curbing the problems experienced in the administration of credit schemes.

Rationale:

The section is made up of a team of professionals devoted to monitoring projects with a view to:

• Assessing progress against set objectives

• Verifying first-hand information for immediate feedback

• Identifying new issues (economic dynamics) that may be obstacles to the smooth implementation and progress of projects, and advise accordingly

• Identifying weaknesses and problems and recommending possible remedies

• Assisting in formulation of long-term objectives of the project

• Assessing the gearing impact on the project, on the individual and on the community within the given area (socio-economic impact)

Strategy:

The section employs the following strategies to ensure effective monitoring process:

• Familiarising clients with terms and conditions of loans through conducting induction sessions

• Close monitoring during project implementation

• Periodic visits to clients

• Ensuring professionalism and confidentiality in handling and processing project information
• Maintaining a systematic storage and retrieval of information and data on visited projects
• Use of questionnaire and check list which are continuously reviewed as and when required
• Review and modify the monitoring system from time to time

Beneficiaries:

Monitoring is offered to recipients of training services and loans from credit schemes administered by BEDCO.  Through this process, clients are assisted in immediate identification of weaknesses and other problems, pertaining to the projects and are advised accordingly.

Ultimately BEDCO benefits from the process in terms of keeping track of their clients, controlling use of funds, information on the performance of clients and impact of its services. The information is used to make important decisions regarding the schemes and other services provided. 

INSTITUTIONAL NETWORKING

Introduction

In its efforts to deliver quality service to its target group, Basotho Enterprises Development Corporation (BEDCO) collaborates with local and international business development agencies. In addition, BEDCO has a long-standing relationship with some of these agencies in matters relating to staff training and development.

The purpose of this collaboration/networking is to exchange ideas in order to improve the quality of services rendered. Locally, we try as much as possible to complement and or supplement each other’s services in order to avoid duplication of efforts.

Mineworkers Development Agency

 BEDCO and Mineworkers Development Agency (MDA), a development arm of National Union of Mineworkers have recently entered into a joint venture with the aim to achieve synergy in the discharge of their respective duties.  The name of the joint venture shall be known as BEDCO/MDA Smart Joint Effort (BEDCO/MDA SJE).

The aim of the Smart Joint Effort between BEDCO and MDA is to complement, supplement and inter-link each other’s efforts in an endeavor to achieve their common goal of poverty alleviation through facilitating the establishment, promotion and development of Basotho Small Micro and Medium Enterprises.

Central Bank of Lesotho (CBL)

BEDCO is an active agency of the Venture Capital Fund of Lesotho, the fund that is intended to accelerate the development and expansion of the private sector by providing financial assistance to Basotho who wish to actively participate in the economic activities of the country.

BEDCO’s role is:

• Appraisal of projects
• Implementation of projects
• Monitoring of financed projects.
• Member of the Steering Committee

The Central Bank of Lesotho is responsible for the general administration of the fund. However, the CBL reports to the Steering Committee (Projects Approval Committee).

The Steering Committee comprises of the Privatisation Unit, Ministry of Finance, Ministry of Economic Planning, Central Bank of Lesotho and BEDCO.

PRIVATISATION UNIT

BEDCO’s Entrepreneurship Training and Development (ETD) division was formerly Entrepreneurship Training Programme (ETP) of the Privatisation Unit. At present BEDCO – ETD still carries out counselling and other related services for former employees of parastatals affected by privatisation and/or restructuring.           In 1999 the Lesotho Flour Mills retrenched its staff as a result of restructuring and privatisation. At the moment, BEDCO in collaboration with the Privatisation Unit administers a credit scheme set up for these retrenchees.

GTZ SMME Promotion Project 

BEDCO is a member institution of GTZ SMME Promotion Project Network.

The purpose of the network is to improve capacity of member institutions to provide demand-driven business related services to local small, medium and micro entrepreneurs.

To achieve this, four network members two of whom were from BEDCO-ETD, have already undergone a training of trainers programme organized by CEFE (Competence-based Economies Through formation of Enterprises) Network South Africa.

Member institutions include:

Lesotho National Development Corporation  (L.N.D.C.)

Lesotho Manufacturers Association (L.M.A.)

Lesotho Council of Non Governmental Organizations  (L.C.N.) Credit Centre

Lesotho Chamber of Commerce and Industry (L.C.C.I.) Credit Centre

Women in Business (W.I.B) Credit Centre

Training and Vocational Education (T.V.D) Department of Ministry of Education

Appropriate Technology Section of the Ministry of Local Government (A.T.S)

Institute of Extra Mural Studies (I.E.M.S)
Ministry of Industry and Trade Marketing (M.I.T.M)

Temo Holdings

Mineworkers Development Agency (MDA)

Staff Development

The department cooperates with the following institutions with regard to staff training and development:

Carl Duisberg Gesslschaft (CDG)

Training of trainers

Project appraisal

Monitoring

Business counselling

Technical training (especially woodwork)

International Development Ireland (IDI):

Project Appraisal

Training of Trainers

Training of Trainers of Trainers

Donor Assistance

Ireland Aid

In general terms BEDCO is responsible for the improvement of the country through SMMEs. In order to assist BEDCO to carryout its mandate, Ireland Aid   assists in the following areas:

Capacity building

Staff training

Entrepreneur development

Office equipment

Communications

Updating programmes

Redefining strategies  

Danish International Development Aid (DANIDA)

DANIDA has also given assistance with regard to establishment of woodwork training workshop in Leribe. It has also sponsored staff training through training in Denmark.

German Development Service (GDS)

German Development Service has provided machinery and equipment for the woodwork-training units in Mafeteng and Maseru. GDS has also contributed towards staff development by assigning German woodwork instructors who worked closely with local counterparts. The locals have since taken over woodwork training. 

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