Effecting Training to Entrepreneurs: Use of Vouchers

Abstract

This paper describes the use of vouchers in effecting training to established entrepreneurs of MSEs in Kisumu and Luanda in Kenya, a case of demand side financing. The study's main objective was to examine the effectiveness of vouchers in effecting training to the established micro and small entrepreneurs. It involved a sample of 150 micro and small-scale entrepreneurs. Data collected was analyzed using both inferential and descriptive techniques. The results suggest that effecting training using voucher system is an effective method of conducting training to the established entrepreneurs. The main reason given by the respondents was that the system allowed the beneficiary to seek training from any training provider, thereby promoting competition between the public and private providers of training services. However, most entrepreneurs said that the mechanism of distributing vouchers and management of the voucher system by Project Coordinating Office were not well done. Being a new method of effecting training, most PCO staff did not understand the procedures to be followed. For the voucher system of training to succeed, the entrepreneurs opined that the management and coordination of the activities should be decentralized to the regional level. This reduced the cost entrepreneurs experienced to travel to Nairobi.