Partnering of Informal Industries and Training Service Providers

Written by: Khan Mohammad Mahmud Hasan, Senior Management Professional, TVET Consultant


This article conceptualizes a model for partnering between informal industries and training service providers in a Bangladesh context.

According to a 2010 assessment of the workforce, 89% of all occupations in Bangladesh’s labor market are thought to be in the informal sector. In contrast to metropolitan regions, it is more common in rural areas. Additionally, women are more likely than men to have informal employment agreements.

In 2010, Bangladesh’s informal sector contributed more than 40% of the country’s total gross value added, with the biggest percentages coming from trade, agriculture, and other sectors with little capitalization.

Due to the vast majority of workers in this sector engaging in unregulated, underappreciated, and “low productive” tasks, the scope of vulnerable employment poses a barrier to steady and sustainable growth.

The 2010 Labour Force Survey found that 87% of Bangladesh’s workforce is working in the informal sector. Payroll workers, independent contractors, unpaid family laborers, piece-rate employees, and other hired labor are examples of people who operate in the informal economy.

Employers frequently need people to serve as unofficial apprentices. They lack the resources or the faith to enroll in conventional short courses or lengthy programs like diplomas. They favor unpaid apprentices as a result.

This informal apprentice is uneducated. They learn from their superiors and via experience. Their pay is practically nonexistent, and even after finishing a full-time apprenticeship, they are not paid the minimum wage. Most people who launch their organization use the same strategy repeatedly.

Therefore, when discussing skilling in the informal sector, we have discovered that a lack of formal education, limited resources, a failure to collaborate with small businesses, a failure to recognize the importance of small businesses, and a lack of understanding of the difference between having a skill and having none are the main obstacles that have always stood in the way.

As a result, we are having trouble implementing an industry-based training system to link unskilled workers with informal enterprises. Therefore, as the existing system places a lot of emphasis on the academic perspective of skill training provided by Training service providers, we must bring them on board as well as the industrial stakeholder jointly.

To create a contextual partnering model in Bangladesh that includes all stakeholders while also not modifying the primary base system, we must customize the German Dual VET Model.

The cooperation model is presented here. I’ll explain the fundamentals of it so that anyone can comprehend it and apply it to a context.

The Purpose of this partnering

The main objective of this partnership is to allow the beneficiaries to develop employable skills that will improve their ability to find long-term (decent) employment, whether through wage-based work in the formal economy or self-employment providing goods and services to small businesses and/or the informal economy, which has a direct impact on Bangladesh’s larger economy. Everyone will find it quite simple to implement this concept, especially in informal industries.

The cooperation will have the following results for the informal economy:

  • Higher productivity was suggested by skilled labor, and higher productivity indicates greater profits for the sector.
  • A methodical approach to the relationship between employers and training service providers

Getting the data

After contact with a few employers in Bangladesh’s local furniture manufacturing industry, I found that they were very interested in Dual Mode Training (a customized version of the German Dual VET System) for their company but in some customized manner. Based on the informal apprentices’ current situation and their willingness to provide apprentices if given practical training, this survey was conducted. Transportation, basic needs, and the required minimum payment for raw materials will all be covered in this inquiry.

Getting information included meeting with informal industries owner, discussing with the associations related to the trades, the apprentice workings in the current industries, and who are interested in the following industries.

One-to-one meetings with all stakeholders and a relational questionnaire are there to find out the ultimate data to design this model.

Method and Process

Through formal training and on-the-job training in designated workplaces, the beneficiary contacts the training service provider in this method. A one-day training session and a five-day workshop will be required of the candidate. The trainer will come to the workshop to supervise and give the candidate the fundamental instruction they require.

Suggested method and process.

Throughout the training period, the participant is also connected with related small enterprises to obtain on-the-job training. A trainer will regularly check the industry’s training level to make sure it is of a good grade.

The assigned trainers will disseminate theoretical knowledge through classroom lectures, career counseling, and employment counseling support offered by the training service providers, the curriculum, and training resources. The practical session will be practiced by the students in the lab, workshop, or manufacturing floor.

Implementation Plan

The training service provider will oversee the entire training procedure. It must be possible to implement training during either the morning or afternoon shift. A double shift can also be investigated if there are enough training resources available and the employers are on board. The TSPs will implement training programs and assure gender promotion and its unique needs, including childcare facilities, restrooms, and separate toilets for men and women. The promotion of jobs for qualified graduates within the scope of the local economy must be ensured following the needs of the project.

The formal theoretical portion of this course, which must be completed in Bangla, will be followed by a job-focused examination in the workplace. Two pieces of evidence are required for the workplace assessment: one from the trainers and one from the employers where the work-based training was completed. The training service providers must produce a unique certificate, which employers must also sign. Keep in mind that the logbook is crucial to this training. The certificate in this case is not as strong of evidence as a completed log book.


This dual-mode skills training course with a partnering model is acknowledged as a way to quickly develop employable abilities in potential learners, guarantee employability in the informal/small-scale economy, and work in close cooperation with the needs of employers.

To fulfill the training objectives, it is anticipated that the TSPs will implement the allocated courses successfully and efficiently. This article is fully based on the Bangladesh context.

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2 thoughts on “Partnering of Informal Industries and Training Service Providers”

  1. A great piece indeed, Khan. M. M. H captured one of the fundamental issue affecting people in Bangladesh in the context of the industry’s informal sector. We will agree that this issue exists in mostly emerging countries, Here in Fiji Islands in the Pacific we do have experience these issues in tits and bits and its important for government leaders to recognise TVET and its potential to specifically and strategicall place TVET training and education national glare.


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