Students gain real business experience through school-based Real Firms

Students from vocational schools in Macedonia develop their business and entrepreneurship skills working in Real Firms.
Students at this school-based Real Firm have started a company that sells distilled water to the local market with a planned expansion into cleaning supplies. The Real Firm is staffed and managed by 250 chemistry students.

Challenge

Macedonia suffers from an extremely low employment rate – 37.9% (2006), compared to 65% in the surrounding EU countries.  This low rate of employment is despite a high-rate of graduation from secondary schools. In fact, 98% percent of unemployed Macedonians have a secondary school education. The problem lies not in school completion but rather in the relevance of their education to today’s global economy. Many of Macedonia’s vocational schools are trainings students for jobs that no longer exist. Hence, students are graduating without the skills many businesses are demanding, skills such as problem-solving, teamwork, and entrepreneurship.  

Initiative

To address these problems, USAID started funding multiple educational activities to better equip Macedonia youth to compete in the global economy. One such activity is the establishment of Real Firms - school-based businesses overseen by students. Through Real Firms, students develop business, marketing and financial plans and sell their goods in the local economy as part of their business class. Like any business, some Real Firms succeed while others fail. Either way, Real Firms provide an opportunity for students to gain leadership and work experience in a safe yet real business environment.

In support of this activity, USAID provides start-up money in the form of equipment and supplies for the company. In addition, almost all schools raise additional funds. Current Real Firms include a successful bakery, a sound studio, a graphics studio, a greenhouse, and a working farm.

Results

Currently, USAID has established 44 real firms in 44 secondary vocational schools, as part of the Secondary Education Activity. In September 2008, USAID will open an additional 15 real firms including three firms which will be run by students with disabilities.