Chapter TwoLiterature ReviewIntroductionThis study has been conducted different related literatures based on theoretical review for this thesis topic. The researcher assessed different related books, journals, thesis and organizational reports incorporated in this literature review to assess the related materials and studies. 2.1 Basic Concept of Terms 2.

1.1 Concept of Technical Vocational and Educational Training (TVET) Technical and vocational education (TVET) is broadly defined as “Education which is mainly to lead participants to acquire the practical skills, know-how and understanding, and necessary for employment in a particular occupation, trade or group of occupations (Atchoarena and Delluc, 2001). Such practical skills can be provided in a wide range of settings by multiple providers both in the public and private sector. The role of TVET in furnishing skills required to improve productivity, raise income levels and improve access to employment opportunities has been widely recognized (Bennell, 1999). Developments in the last three decades have made the role of TVET more decisive; the globalization process, technological change, and increased competition due to trade liberalization necessitates requirements of higher skills and productivity among workers in both modern sector firms and Small and Micro Enterprises (SMEs). Skills development encompasses a broad range of core skills (entrepreneurial, communication, financial and leadership) so that individuals are equipped for productive activities and employment opportunities (Wage employment, self-employment and income generation activities). According to Bonn cited by United nation Education and socio cultural (UNESCO,2009) noted that TVET is the “Master Key” for alleviation of poverty, promotion of peace, and conservation of the environment, in order to improve the quality of human life and promote sustainable development. Bonn Resolution of 2004 also highlighted that TVET could be considered as a vehicle for socio-economic development and technological transformation.

It is critical that TVET program meets the challenges of increased unemployment, underemployment, poverty, food insecurity and environmental degradation. The skills development is significant for economic growth, poverty improvement, youth and women’s empowerment and social inclusion. Nevertheless, the role of TVET is absent to a large extent in most policy papers.

This gap is particularly ‘puzzle’; Governments and donor countries consistently emphasize the need for concerted efforts to build the human assets of the poor. Yet TVET is accorded limited importance in donor financing schemes and discussions since the late 80s’ (Bennell, 1999). Several countries; developed and developing, such as Italy, Brazil, China, Sweden and Japan have given more recognition to TVET through adequate funding. As a result, students get exposed to vocational training and to a culture of scientific investigation and application at an early age. Several scholars said about TVET role or contributions in growth of Entrepreneurship and sustainable development.

Bonn Declaration on Learning for Work, Citizenship and Sustainability argues that: 2.1.2 The Concept of EntrepreneurEntrepreneurial activity is one of the major sources of Economic growth, innovation and job creation. Being entrepreneurial can mean many things to many people. A common conception according to Gartner (1990) is that entrepreneurship is about entrepreneurial individuals creating innovative organizations that grow and create value, either for the purpose of profit or not.

But entrepreneurship does not have to include the creation of new organizations, it can also occur in existing organizations (Shane and Venkataraman, 2007). It is not only limited to the entrepreneurial individual, but also to entrepreneurial opportunities and the relation between the individual and the opportunity, i.e. the individual-opportunity nexus as described by Shane (2003). Stevenson and Jarillo (1990) define entrepreneurship as “a process by which individuals – either on their own or inside organizations – pursue opportunities without regard to the resources they currently control. Bruyat and Julien (2001) use a constructivist approach and propose a definition incorporating not only the entrepreneur, but also the new value created, the environment within which it takes place, the entrepreneurial process itself and the links between these constructs over time.

They also propose the terms “individual” and “entrepreneur” to represent teams whenever applicable.An Entrepreneur is a person who does entrepreneurial work within large organization. The process by which an entrepreneur affects change is called Entrepreneurship. There are two facts about entrepreneurshipThe Entrepreneur’s context is often large and bureaucratic organization whereas the individual entrepreneur operates in the broader, more flexible economic market place. Entrepreneurs are individuals who often engage in the entrepreneurial actions in large organizations without the blessing of their organizations. 2.

1.3 The Concept of Entrepreneurial SkillA skill is simply knowledge which is demonstrated by action. It is an ability to perform in a certain way. An entrepreneur is someone who has a good business idea and can turn that idea into reality.

To be successful, an entrepreneur must not only identify an opportunity but also understand it in great depth. He or she must be able to spot a gap in the market and recognize what new products or services fill the gap. He or she must know what features it will have and why they will appeal to the customer.

The entrepreneur must also know how to inform the customer about it and how to deliver the new offerings. All this calls for an intimate knowledge of a particular sector of industry. 2.2. Objectives and Content of Entrepreneurship Training in Vocational Training The content of the entrepreneurship training program should mirror the learning objectives, which can be related to both pedagogical and socio-economic objectives. As to pedagogical objectives at least the following ones are set for entrepreneurship training (Hytti and O’Gorman, 2004).Learn to understand entrepreneurship (“about” entrepreneurship): training “about” enterprise deals mostly with awareness creation and increasing theoretical understanding about entrepreneurship.

Learn to become entrepreneurial (“in” entrepreneurship): training “in” enterprises deals mainly with management training for established entrepreneurs and employees. Learn to become an entrepreneur (“for” entrepreneurship): training “for” enterprise deals more with encouraging people to set-up and run their own business (see Henry et al., 2005b).

These pedagogical objectives can be used to meet broader socio-economic objectives, as defined by policymakers. In addition to balancing with opportunity exploration and exploitation, entrepreneurship training balances between individual and business development. Entrepreneurship training programs often focus on business planning and functional knowledge supporting venture creation.

In general it seems that there is a gap between what is taught in entrepreneurship and what entrepreneurs actually do (Fayolle, 2013). 2.3 Importance of entrepreneurship Nicolaides (2011:1043) claims that entrepreneurs create new technologies, products and services to meet society’s needs. In addition, he describes entrepreneurs as savvy risk takers, implementers and innovators who can transform socio-economic landscape through creation and exploitation of new opportunities in the market.

Ndedi (2009:466) acknowledges the importance of promoting entrepreneurship and training entrepreneurs through centers and institutions. This is something that he attributes to the following scenario. According to him, research, which was conducted by David Birch in job creation through entrepreneurship in the United States of America (USA) over the past 20 years, found that new and growing smaller firms formed 81,5 percent of new jobs in America, from 1969 to 1976. He further stated that from 1993 to 1996, about eight million jobs were created in the USA, with 77 percent of those jobs being produced by small enterprises. Moreover, he asserts that the USA’s entrepreneurs at the time were trained to take calculated risks by reinforcing the launch of their own businesses. He wonders though if the South African universities are addressing this issue. Van Rensburg (2010) holds that South Africa is a nation with quality education that is offered within the field of entrepreneurship at school level. He adds that children are exposed to the subject as early as primary to high school environment.

He also argues that at tertiary level a number of institutions offer entrepreneurship degrees or integrates it within their courses. In support of this, he points out the following tertiary educational institutions: GIBS Full-time Entrepreneurship MBA; University of Pretoria; University of South Africa; UCT Centre for Innovation and Entrepreneurship (CIE) at the Graduate School of Business (GSB); University of Johannesburg; and WITS Business School (WBS). Entrepreneurship is highly considered as an invaluable tool to address not only high unemployment, but also as a mechanism to respond to the unsure national landscape (Ndedi, 2009:467). He contends that in the USA, proliferation of entrepreneurship was attributed to the emergence of centers and higher education institutions, which offer entrepreneurship courses. abundant African countries have also acknowledged that entrepreneurship is an chief mechanism to deal with the unemployment agenda (Nafukho&Muyia, 2010:100). These writers conclude that investing in entrepreneurship, education and training is one of the best strategies that any country can employ to capacitate and advance human resources in order to promote socio-economic development.2.4 Methods used to teach Entrepreneurship in Vocational Training The choice of relevant teaching methods is generally considered to be important in entrepreneurship training at all levels.

It is increasingly accepted that entrepreneurship is best learned by doing. The closely related concepts, such as contextual learning (e.g., Rae, 2004), experiential learning (Kolb, 1984) and action learning (Marquardt and Waddill, 2004) all understand learning as a highly situational and holistic, contextually-embedded process, in which participants tackle elusive problems and combine social processes with their individual learning (Mumford, 1995). There is some evidence that this kind of learning might be effectively addressed by multi-method approaches creating value-added to students. Methods for teaching entrepreneurship vary extensively. Entrepreneurship training uses the current approaches: classic methods (i.

e., lectures and readings), action learning, new venture simulations, technology-based simulations, the development of actual ventures, skills-based courses, video role plays, experiential learning, and mentoring (Pittaway and Cope, 2007). However, the approach is not an end in itself but it supports the reaching of the learning objectives (Heinonen and Akola, 2007), i.e. one can learn from mistakes, by doing, by coping, by experiment, by problem-solving/opportunity grasping, by making things up as well as from explicit formal sources (Gibb, 2002).2.

5Technical Vocational Education and Training (TVET) for Youth IIEP (2007) has prepared newsletter on TVET that shows, youth transition from school to work, and from childhood to adulthood, is a major challenge for both families and education authorities. Securing the dividends from educational progress and demographic changes requires effective education and training strategies as well as consistent cross –sector policies. As a result of Education expansion, the transition from school to work is taking place later as young people study for longer.

Yet, despite significant progress in school participation and training, youth unemployment remains a major problem. Young people still face serious difficulties in integrating with the labor market, even in those countries where the numbers so young people have fallen due to demographic change. The transition from school to work is therefore an important and active area for public policy, and fertile research field for investigating social and educational change (IIEP, 2007). As IIEP’s newsletter report, globalization has had profound effects on labor markets.

While some countries have benefited from more international competition and trade, others have suffered increased unemployment and under-employment. Youth migration constitutes another dimension of globalization, and is particularly acute in small Island developing states where the domestic labor market offers few job opportunities. Yet, at the same time, migration and the transfer of knowledge, ideas, skills and technology through the return of migrants and general mobility are increasingly recognized as valuable, sometimes vital, contributions. Turning migration into an effective development tool for countries with high emigration is a major policy concern in some developing countries. While unemployment and employment rates used to be considered as the main indicators of the conditions of youth labor market participation, increasing attention is being paid to those who drop out of the active population when jobs become too scarce.

For this reason, an indicator of joblessness is often used, attributed to all those who are neither in education nor in employment. Young people who leave school without qualifications are more likely to be in this situation, and constitute the group of young people most at risk in the labor market. The large numbers of young people not in education, work or training are increasingly seen as a security problem.

Disenchanted, they are easy prey for armed conflict, terrorism and crime. In post conflict situations, demoralized young fighters and child soldiers will return to violence if not given swift access to education and training which facilitates their transition to work (IIEP, 2007).According to IIEP has reported improving the employability of young people often involves strengthening school-enterprise linkages, providing out of school vocational training program and offering career guidance and placement services. Employment subsides are also often used to encourage the requirement of young workers. IIEP also suggested that, TVET provides students with the competencies, skills and thereby facilitates access to employment. Information and communication technologies can also offer new opportunities for expanding access at an affordable rate.

The real challenge is to prepare young people for lifelong learning in order to sustain their long-term employability and facilitate active citizenship. Beyond immediate labor market needs, successful transition involves preparing young people for learning throughout life in a context of increasing labor market instability and rapid technological change. Allowing school early school leavers to re-enter the system, facilitating the retaining of workers to update their skills or prepare them for new occupations, and meeting the demand to learn for leisure are crucial challenges.

Providing support to youth entering the labor market is also a crucial component in vocational training. Many young people have difficulty in mastering the codes, roles and routines of the workplace. As a result, many lose their jobs because either they or their employers are dissatisfied. Support involves social guidance and workplace mentoring throughout the integration process, which can take up to a year once the training has ended. Young people should be informed of their employment rights, the wages paid for various trades, and the rules of a workplace.

They should also receive help to work out career plans and assistance with job applications, in order to facilitate access to steady employment. Issues still remain to be tackled. Closer bonds are needed with the private sector in order to develop skills-based curricula. Improved tailoring to local needs is also needed, together with systematic monitoring and evaluation.2.6 The role of TVET for Entrepreneurial Works (Self-employment) Self-employment represents an important route into the labor market in Urban and Rural areas.

However, self-employment requires more than being technically competent in a certain occupational field. In order to become successful, entrepreneurs need self-confidence, creativity, a realistic assessment of the market, basic business management skills and openness to risks. Starting a business, furthermore, requires access to finance, access to necessary permits and licensing, and access to land or structures to operate from.

Against this background, basic entrepreneurial and business management training will be incorporated into all relevant TVET program. The TVET authorities will provide assistance to TVET providers to develop appropriate training packages, drawing on the magnitude of international experience in this field.TVET providers are also encouraged to consider the work environment in the local micro and small business sector when designing their training program. This includes, for example, the introduction and use of appropriate technologies and the organization of internships or cooperative training program with micro and small enterprises. The TVET executive bodies will also undertake initiatives to strengthen and raise quality in traditional apprenticeship training, as this of TVET delivery is particularly effective in preparing youth for self-employment. TVET institutions shall serve as centers of technology capability, accumulation and transfer. They shall closely cooperate with the private sector in undertaking problem-solving research program (MoE, 2008).