five two-to-three hour evening sessions and may be taken individually (but sequentially) or as part of a programme lasting for about three months. The average cost per client, including on-site counselling, is about $250 over two years, and most is recovered through fees and a proportion of the interest on loans. About 150 businossmen enrol per month and one-third complete all three basic courses. Those who do may then become eligible for credit from a. separate operation.

The operation appears to be well-established on a permanent basis, is becoming increasingly self-sufficient, and clearly acts as an effective, screening process for the credit operation, which has a current repayment record of over 95%. Although the Carvajal Foundation advises against literal attempts at replication, these measures of success have stimulated interest in similar initiatives elsewhere.

Entrepreneurship DeveloRment Programmes in India: The Indian Entrepreneurship Development Programmes originated with schemes established in 1970 by the Gujarat Industrial Investment Corporation Ltd. for financing new entrepreneurs (Patel, 1986). The programmes were soon developed into comprehensive packages involving various types of entrepreneurship training as well as financing, in two main modes: evening classes each day for three months for those with industrial experience, and full-time courses for the inexperienced. Data supplied by Entrepreneurship Development Institute of India indicate that by 1984 8,000 new entrepreneurs had been trained in Gujarat, 3,000 enterprises were in operation, and a further 1,400 about to begin operation. Seventy-five percent of the existing enterprises were said to be in good health. The cost per trainee was about U.S.$250 and the cost per enterprise therefore approximately double. No independent evaluation appears to be available, but the programme has substantially increased in scale over the past seven years and has been replicated in various forms in twenty other states. Experience with such programmes elsewhere seems less positive, but Patel suggests that this may be attributed to their recent establishment.

# Skill development by osmosis from the modern sector

In most countries with significant private sectors, large enterprises have a habit of spinning off small ones, employees leaving to set up on their own account once they have acquired with sufficient occupational experience. in many cases these new undertakings may remain bound to the modern sector but in others their creation constitutes a process of renewal in the traditional sector which fosters the dissemination of both new technology and improved skills. As Herschbach (1987) observes, "to a large extent, it is from organized programmes that skills are learned which, in turn, eventually find their way into the skill repertoire of informal workers. And it is through this inflow of skills, often from formal sector workers who opt to move into the informal sector, that technical upgrading is achieved." An example of this type of intersectoral flow is provided by the case-study of small enterprises in the metal-working, plumbing and electrical repair trades described by Fluitman (1987). Although the entrepreneurs had mostly acquired their skills through on-the-job training in the family business or as an apprentice, "quite a few" had had experience of employment

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