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Assess the businesses before choosing the curriculum
Do not assume every participant is unregistered or faces the same barrier. Ask what records the business currently keeps, what it needs to manage day to day, and what makes record keeping or formalization difficult. A business may be registered but lack usable books; another may keep informal records while remaining unregistered.
Use the assessment to define the target group and the program’s objective. You might focus on basic records, everyday management, understanding formalization options, compliance steps, access to services, or a deliberate combination. Keep these goals distinct: a participant learning a practice, adopting it, changing business status, and improving business performance are different outcomes.
Map local support and requirements first
Formalization is jurisdiction-specific. Before teaching registration or compliance steps, map the relevant government offices, business associations, worker and employer organizations, social-security institutions, financial-service providers, and other business-support initiatives. Confirm the applicable process, documents, fees, timing, and ongoing requirements with local partners and appropriate official bodies.
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The International Labour Organization’s Formalize Your Business (FYB) training offers a useful adaptation sequence: map actors, validate country-specific information, adapt and review the materials, then prepare trainers. The ILO describes a country adaptation period of approximately six months; that is a planning reference, not a universal implementation guarantee.
Teach record keeping participants can actually use
Choose a simple record-keeping approach suited to the enterprise, the participant’s current practices, and local requirements. The aim is not to impose complex accounting on every small business. Connect records to practical decisions such as tracking sales and costs, planning finances, or monitoring stock.
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Management needs may extend beyond bookkeeping. An ILO review of an Ethiopia study describes constraints involving marketing, record keeping, financial planning, and stock control. Use the initial assessment to decide which capabilities belong in this program rather than treating a standard curriculum as right for every group.
Explain formalization as a pathway, not a promise
Cover why formalization may matter, its possible benefits and challenges, the steps that apply locally, and the obligations that continue after registration. Depending on the jurisdiction and enterprise, relevant topics may include business registration, labor rules, tax, social security, and sector-specific requirements. Keep each topic grounded in current local guidance.
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The ILO puts the purpose succinctly: “Enterprise formalization is not an objective in itself. It is a means to an end.” Frame the discussion around participants’ circumstances and broader goals such as resilience and decent work. Do not imply that registration automatically raises income or secures access to finance.
Choose delivery around access and follow-up
The FYB model uses three half-day sessions and can be offered on its own or alongside the ILO’s SIYB program. Other approaches in the evidence include individual counseling, mentoring, and live remote classes. Choose a format by considering participant access and time, delivery resources, opportunities for one-to-one follow-up, and whether facilitators can deliver locally accurate information in participants’ languages.
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| Format | What the cited examples establish | Design consideration |
|---|---|---|
| Classroom | The ILO FYB model uses three half-day sessions. The Indonesia trial included a two-day class as one component of its service bundles. | Check whether participants can attend and how the course will support practice after sessions. |
| Individual counseling | The Indonesia trial included five individual counseling sessions as one component of its service bundles. | Consider facilitator capacity and how counseling will address differences between businesses. |
| Mentoring | The cited Ethiopia study examined business training and mentoring for women-owned microenterprises. | Plan how mentoring will connect learning to participants’ actual business decisions. |
| Live remote classes | A World Bank study examined Zoom-based training in Mexico and Guatemala; remote delivery was feasible, but measured impacts had dissipated by six months and cost savings were lower than expected. | Do not treat remote delivery as a universal substitute for in-person support; plan for access, follow-up, and outcome timing. |
These examples do not identify one best format for every setting. In Indonesia, an ILO-described evaluation tested service bundles with over 5,000 clients in two provinces; implementation involved more than 170 loan officers trained as trainers and/or counselors. Those figures describe that trial’s scale and delivery, not a forecast of results elsewhere.
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Train local facilitators after the curriculum has been adapted and reviewed. They need to explain both practical business skills and the locally relevant steps without presenting a changing administrative requirement as permanent. Build a process for checking and updating materials with local partners, and use facilitator feedback to identify where participants need clarification or additional support.
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Evaluate learning, practices, status, and performance separately
Set measures that match the program’s objectives. Track participation and learning, adoption of record-keeping or management practices, formalization steps where relevant, and enterprise outcomes over a suitable period. The World Bank review of 230 program evaluations emphasizes that context, participant profiles, program characteristics, and outcome selection all matter; it calls for rigorous evaluation to establish what works, how, and why.
An ILO-published 2020 review reports a meta-analysis estimate that small-business training increases profits and sales by 5 to 10 percent. That is a pooled estimate across reviewed evidence, not a prediction for a particular program. The review notes substantial variation and that effects of this size can be too small for most individual experiments to detect statistically. Set realistic expectations and avoid promising uniform growth.
Use evidence with its context
In a 27 June 2022 ILO program overview, Dragan Radic, then identified as Head of the SME Unit in the ILO Enterprises Department, was quoted as saying at a webinar on 15 June 2022: “80 per cent of all economic units are informal and employment in the informal sector exceeds employment in the formal sector,”. Treat this as a statement attributed to him at that webinar, not as a newly verified global estimate.
For program design, the most useful conclusion from the evidence is not that one curriculum or delivery mode wins everywhere. Adapt the content to the business group and local requirements, provide support suited to participants’ needs, and evaluate the outcomes the program is actually intended to change.
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