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Practical Business Development Skills Program in the
Educational Institution in the Rural Areas


Based on the level of education, the largest amount of unemployment in Indonesia comes from the Senior High School graduates, which is 35.85% on average. They also are likely to be the most vulnerable to poverty, compared to the older. Those high school graduates are in the transition period, from dependent state to become on their own, as well as in the adaptation period from academic environment to working environment.

Generally, they encounter the problems in finding productive activities due to their limited competence, mainly caused by the learning system that still emphasizes more on the aspect of learning to know, instead of the skill aspect as the embryo of entrepreneurship. Such condition makes the formal educational institution is not capable to be an instrument of entrepreneurship development.

The decrease of the unemployed and the poor can only be achieved by providing productive activities to the community itself, and those who are capable to create such things are the entrepreneurs; that is the main reason of the urgency to create early development and nursery basis of entrepreneurship in rural education institution.

Therefore, the development of Practice Facilities of Business Skills (TPKU) at rural educational institution is a strategic solution to entrepreneurship emergence through providing the managerial and technical business skill to the students; with hope that when the students eventually finish their education and melt into the real community, they are readily equipped with life skill and become survivors in tight competitions. As the alumni of a rural educational institution, they are prepared to be community leading figures, especially in the area of spiritual, religious, moral and social, and also prepared with business development skill. They are expected to be the job creator, not merely a job seeker "skilled worker", who become new entrepreneurs and creating new business units that provide working fields to others. That way, the unemployment rate is supposed to be decreased.

Some types of TPKU that have been developed include: a motorbike workshop, an electronic workshop, a garment industry, a handicraft industry, a small processing facility for agricultural products, and others suitable with local potential. The types of business skills in these TPKUs are perceived to offer great benefits for the graduates and the rural community, such as:
a) Highly accessible to job opportunity;
b) Greater opportunity to start a new business;
c) Fulfilling the skill requirement for developing the technology-related products: and
d) Fulfilling the skill needed for developing local potentials, particularly in rural areas.

The development of TPKU in educational institution is meant to be the media of early dissemination and cultivation of community entrepreneurship, by developing the learning and practice facilities of business skills in rural.

Educational institution that run the senior high education (MA, SMK, MAK), covering:
a) Building design and construction of TPKU;
b) Procurement of business facilities and equipment;
c) Provision of subsidy for the operational cost of business skill practices; and
d) Operational support for the job trainings.


1. Enabling the rural Educational Institutions, in a wider spectrum, to become the media of preparation for the students/youth as the new generation of entrepreneurs systemically;
2. Disseminating entrepreneurship as earliest as possible in the community, in order to grow productive behavior and create new business units;
3. Improving capacity and competence of human resources in order to strengthen the autonomy of Koperasi and UMKM;
4. Reducing unemployment, poverty and urbanization.


1. Increasing the participation of Community (rural educational institution) as the basic nursery of new entrepreneurs;
2. Enhancing business technical and management skills of the students so that they transform into entrepreneurs of many fields and become well prepared to improve their business autonomously;
3. Providing practice facilities of business skills regarding the local economy potential and give generous benefits (entrepreneurial opportunity, technology transfer, etc);
4. Driving growth of other business activities (another type of TPKU) within the environment of the educational institution according to local economy potential by strengthening of organization and business of Cooperative as the business incubator for students autonomously yet continuously.


The criteria for rural institutions eligibility for participation in this program include:
a) Located in rural areas, far from educational and training facilities;
b) Privately run (or self-supported by the community) with formal status/license from the government;
c) Conducting formal education on senior high level (SMU, SMK, MA, MAK, or MAPK);
d) Proposing one type of TPKU that suits with the capacity and potential of the educational institution itself; and
e) Willing and ready to recruit trainers/instructors suitable with the type of the TPKU as permanent workers at the institution.


The Program of Development of Business Skills Practice Facilities in Educational Institution of The Rural Areas is an effort of developing and raising new entrepreneurs among the highly potential students and high school graduates, which presumably 60 % of them do not continue their education and if the situation is not handled seriously, may be potential source of another unemployment. By means of providing them the provisions in form of business skill and startup capital, they are expected to be able to built strong motivation and entrepreneurship of themselves, so that they are capable of at least creating a working field of their own. Eventually, the program is aimed to reduce the number of unemployment and to decrease the rate of urbanization.

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