ILO Formalize Your Business (FYB) Training for entrepreneurs

Enterprise formalization is not an objective in itself. It is a means to an end. It promotes progress towards transforming economies and strengthening the resilience of men and women entrepreneurs and the workers that they employ, many of whom are currently part of the informal economy, to promote decent work.

The ILO Formalize Your Business (FYB) programme is an in-class training which is implemented over 3 half-day sessions (15 hours). It is designed to support the transition of informal economic units and their workers to the formal economy. It aims to create awareness among entrepreneurs on the importance of formalizing their businesses and complying with national legislation, and seeks to address key constraints faced by small enterprises to achieve a just transition to formality. The training can be implemented as part of a wider approach to create a more conducive environment for entrepreneurship, business development and growth.

The FYB training contains two components:

• Generic component: Explores the various dimensions of business formalization relating to, among others, business registration, bookkeeping systems, labour laws, taxation and social security requirements.
• Country component: Explains the practicalities of achieving enterprise formalization at the national and local level. These relate to, among others, documents, time and money required for business registration and compliance.

The ILO FYB training can be carried out as a stand-alone training or combined with the ILO Start and Improve Your Business (SIYB) training programme.

The FYB training programme has been developed for Côte d’Ivoire, The Gambia and Senegal in collaboration with key constituents and partners. It is also currently being implemented in Bolivia and Lebanon.

The adaptation of the FYB training programme to a specific country is done through five steps and takes approximately 6 months.

Step 1: Map out key actors and initiatives which support the transition to formality in the selected country.

Step 2: Collect and validate step-by-step information on registration and compliance.

Step 3: Adapt training tools to the requirements of the selected country.

Step 4: Review training tools and materials, and validate whether they are in line with the identified country requirements.

Step 5: Conduct a Training of Trainers (ToT), and roll out FYB training to entrepreneurs in the informal sector.

The ILO Enterprise Formalization team supports adaptation by providing planning and guidance on the process, generic training tools, TORs for consultants, standard layout templates and templates for information booklets and MOUs (in English and French). The team also conducts content revision and quality control, and ensures harmonization of training tools across countries.

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