[{"bbox": [129, 134, 1100, 222], "category": "Text", "text": "This will in turn lead to empowered TEVET graduates and entrepreneurs, providing a skilled workforce and critical mass of small businesses that contributes to economic growth and supports Malawi's overall development goals."}, {"bbox": [129, 234, 1100, 463], "category": "Text", "text": "In terms of choice of TVET trades, most promising is the construction sector because it is a key enabler for sectors identified in the National Export Strategy and the Malawi Growth and Development Strategy III, where substantial investment and growth is taking place; it has large absorption and expansion potential, including for MSMEs; valuable experience and networks have been built under STEP; and finally it is complementary to actions of other development partners. Furthermore, the project is designed to allow exploring other high potential sectors for TEVET, such as the tourism industry. To evaluate this potential, studies may be undertaken in the context of the Technical Assistance contracts that are foreseen under this Action."}, {"bbox": [129, 477, 1101, 768], "category": "Text", "text": "Establishing clear governance structures and well-defined agreements will ensure that all parties are accountable for attaining the planned results. An important element in this will be the further development and implementation of a Labour Market Information System (LMIS). This is essential to give direction to policy development and to be able to determine future skills needs of the labour market. Another important aspect of improving governance of the TEVET system is sustainability: if the government supports reforms in the management of the TEVET levy system, then important efficiency gains will be obtained and the system will be more sustainable, and the private sector, who pays this levy, will be more positively engaged. This will also contribute to strengthening the feedback loop, interconnection and interdependence between TEVET and private sector."}, {"bbox": [129, 779, 1100, 1041], "category": "Text", "text": "Emphasis will also be put on ensuring private sector participation in the governance of TEVET through the TEVETA board and through the oversight mechanisms of this action. The focus from STEP on ensuring interaction with the private sector as part of the TEVET training will be maintained and even further strengthened through the link between the two components. The component on TEVET will create links to the component on entrepreneurship in particular through the training of students on relevant entrepreneurial skills and labour market information systems. Strong complementarity between the entrepreneurship component and TEVET will be also sought through the results on governance and learning, access to finance and support to incubators and BDSs which will target potential and existing Micro and Small Enterprises and TEVET graduates."}, {"bbox": [129, 1052, 1100, 1458], "category": "Text", "text": "The intervention will respond to a value stack of needs model that enable an entrepreneurship venture to reach its goals, starting by the highest value which are the internal skills provided by the first component, followed by the other needs catered for by component 2 such as access to a community of entrepreneurs; business guidance; entrepreneurial learning and personal skills development; access to long-term support practitioners; access to specialists and service providers; capacity to identify and access markets; and access to finance. Entrepreneurs' business ideas/concepts and business proposals at various levels of development will be assessed by the Business Incubators prior to admission to the pre-incubation, incubation, and post-incubation support. Business Incubators and Business Development Service (BDS) providers will be enabled to play this role by capacity-building. In order to encourage formalisation of the predominantly informal MSME sector in Malawi, the programme will restrict its support to formally registered entities, while also facilitating registration of such by among others sensitising on registration processes, and through expected output 2.3 identifying and addressing bottlenecks that hinder registration and operations of small businesses."}, {"bbox": [129, 1469, 1100, 1616], "category": "Text", "text": "Assuming banks respond as expected by developing lending windows and relationships with entrepreneurs, then the action will establish two or three access to finance windows covering the stages of pre-incubation, incubation and post-incubation with a progressive scheme of seed financing (small matching grants), interest-free returnable grants, and concessional lending. While recognising the difficulties of formalisation of Micro and Small Enterprises (MSEs) in least"}, {"bbox": [603, 1665, 630, 1690], "category": "Page-footer", "text": "16"}]