CEFE stands for Competency based Economies, Formation of Enterprise. CEFE is a comprehensive set of training instruments using an action oriented approach and experiential learning methods to develop and enhance the business management and personal competencies of a wide range of target groups, mostly in the context of income and employment generation and economic development.

CEFE being a training concept is based on the assumption that the enrichment of society is essentially on its human resources and the more productive and accountable these people are the greater will be the wealth of that nation. It has evolved over the years from an approach training individuals who want to start their own enterprise to a far reaching training methodology, designed to evoke enterprising behavior and competence in a wide variety of situations. The fundamental assumption is that people with a clearer vision of their goals and equipped with the skills to achieve them are far more likely to become productive individuals in society.

CEFE's main objective is to improve entrepreneurial performance of economic actors through:

• Guided self analysis
• Stimulating enterprising behavior
• Building business competencies

First stage: Awareness in which participants are encouraged to examine who they are, clarify their own values, evaluate their own personality, motivations, capabilities and personal resources.

Second stage: Acceptance or recognition of one's own strengths and weaknesses, not everyone has to be a leader or head, but being more creative, innovative and competent, is likely to produce rewards in any profession.

Third stage: Goal setting, where the emphasis is place in developing clarity of purpose in one's short and long term goals of life.

Fourth stage: involves developing strategies and action plans, which are oriented to generating growth, this is done after analyzing the relevant components of the six factors mentioned above and includes the upgrading of knowledge about economies and entrepreneurial decision making.

Fifth stage: is direct experience where emphasis in doing structured learning experiences and encountering "real life" situations assist in building up this experience in which strategies are tested, evaluated and modified.

Sixth stage: is transformation and improvement where the competencies acquired come together into a pattern which matches personal strengths and weaknesses with goals.

CEFE's overall guiding principle to the training is the ownership of the process which is acquired through the time and energy that participants must invest into the highly demanding schedule of each course. By moving through the six stages from awareness to transformation, the participant is given the opportunity to experience personal growth and to develop a more enterprising approach to life. The amount of empowerment that actually takes place is in direct proportion to the investment made by the participant and to the increase in economic opportunities.

CEFE's method of enterprise promotion represents the synthesis of enterprise research, theory and applications and links economic growth with more and better qualifies employment and higher individual income. Its strengths come from paying particular attention to the practical results of its interventions. The method has been widely used in sectors such as small and medium enterprise development, reconstruction and private sector, management training, vocational training, education, rural and urban development, refugees and reintegration programs and in agriculture.

Although CEFE's training methodology has been applied in a variety of situations, its core focus yet remains the stimulation of growth in the small and medium enterprise development process where the emphasis of entrepreneurs is in improving their business performance. While of personnel from enterprise support and regulatory institutions more attention is given to creating a positive enabling environment at the macro and meso level.

CEFE has been introduced in more than 100 countries during the last ten years and is practiced by an International Network of 1,300 organizations and 2,500 people. The activities related to the worldwide dissemination of the CEFE concept are supported and financed by a number of bi and multi lateral donor agencies as well as local governments (ADB, IADB, EU, ILO, World Bank, UK, Canada, Austria, USA, Brazil, South Africa and Tunisia). Under German Development Cooperation, there are 150 bilateral projects and an international project called CEFE International operation with the CEFE method.

CEFE has proven to a very successful approach to the promotion of small and medium enterprises, employment, income and economic growth. The major findings of an official evaluation of the German Ministry for Economic Cooperation, carried out in different countries in Asia, Latin America, Africa reflect that:

• Participants declare CEFE to be useful

  For development of their entrepreneurial competencies
  For personal development
  For the development of their business

• 98% of existing entrepreneurs with 1-2 employees and 100% of entrepreneurs with 6-10 employees claim their income and turnover increased by at least 30% after going through a CEFE training
  
  
• Out of training course for potential entrepreneurs

  44% did not start a business while
  45% became successful entrepreneurs

• Up to now, CEFE seems to be especially successful and fruitful when used for people which have lower educational background and or low income.
  
  
• When looking at the number of employees, the increase in number is significant after a CEFE training with an average of 4 new jobs created per participant
  
  
• Women's share in CEFE circles around 38%. A CEFE training can be broken down into several training course modules, this helps women and other participants with time consuming obligations to participate.

In the Philippines, according to the latest study of the DTI Countryside Entrepreneurship Development Program (CEDP), 33% of potential entrepreneurs started a business after one year attendance to a CEFE training while 80% of existing entrepreneurs expanded their businesses.

CEFE International is the international network of CEFE implementing organizations and trainers which is specialized in supporting long terms projects, CEFE partner organizations, other donor agencies in the use and implementation of CEFE programs. It also assists CEFE partners in adapting and implementing CEFE know how according to the specific needs of the specific target groups and objectives of the project activities.

CEFENet is the recognized network organization of Philippine CEFE implementing organizations and trainers by the CEFE International. For more details, please refer to the profile of this website.