Investment in Vocational Training Certification Programs
Investment in Vocational Training Certification Programs
Business Model Description
Providing digital training and certification services attesting to the employability skills and technical or vocational qualifications of the workforce
Expected Impact
Vocational training services will develop essential skills among the Turkish workforce and promote wider access to the labor market through increased skills documentation.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Turkey: Eastern Anatolia Region
- Turkey: Mediterranean Region
- Turkey: Southeastern Anatolia Region
Sector Classification
Education
Development need
Significant challenges remain in the provision of quality education in Turkey which has negative bearings on the relevant indicators of SDG 8 (Decent Work and Economc Growth).(1)
Policy priority
The government's 11th Development Plan (2), the 2020 Presidential Program (3) and the Sustainable Development Goals Evaluation report (4) prepared by the Directorate of Strategy and Budget all emphaizse the importance of developing human resources to produce positive economic and social externalisites, and ensuring accessibility to education and life-long learning opportunities.
"Gender inequalities and marginalization issues
The ratio of female-to-male mean years of education received is at 82.14% in Turkey, indicating that women in Turkey on average complete fewer years of schooling. (10) The gender parity index expressing the total net enrolment of women versus men in primary school has a score of 0.99/1. (18) The GPI for lower secondary school is at 0.98 while the GPI for upper secondary school is at 0.96. The share of female students in secondary education enrolled in vocational programmes in Turkey was reported at 22.38 % in 2017. (19) Although women perform well on education-related GPI indices, their labor force participation in Turkey is significantly lower than men at 33.27%. (20)"
Investment opportunities
COVID-19 has demonstrated the importance of investing in education technologies and remote learning systems. Moreover, due to the refugee crisis and the changing dynamics of the labor market, segments of the population are being pushed into informality. Vocational training and certification prove essential in this context.
Key bottlenecks
There are significant supply-chain constraints in some regions, especially for remote learning systems, due to the inadequacy of the communications and internet infrastructure. Moreover to translate into job market results, learning outcomes have to be certified, especially for new entrants in the domestic market such as the refugees.
Formal Education
Development need
Around 143 profesions in Turkey require a vocational qualitifation certificate (5) which provides proof of vocational skills and facilitates access to the labor market. Very few Syrian Refugees have obtained a work permit, as nature of their employment (garmet industry, trade, hospitality and manufacturing) remains largely informal (6).
Policy priority
Vocational training and certification is deemed essential by the 11th Dev. Plan for a variety of purposes including integrating those groups of the working age population which are outside the labor force in the labor market through vocational and focused training opportunities and supporting certified training services to increase the digital competencies of the work force.The Sustainable Development Goals Evaluation Report encourages life-long learning opportunities through a variety of methods including vocational training and skills development.
"Gender inequalities and marginalization issues
The ratio of female-to-male mean years of education received is at 82.14% in Turkey, indicating that women on average complete fewer years of schooling. (10) The gender parity index expressing the total net enrolment of women versus men in primary school has a score of 0.99/1. (18) The GPI for lower secondary school is at 0.98 while the GPI for upper secondary school is at 0.96. The share of female students in secondary education enrolled in vocational programmes in Turkey was reported at 22.38 % in 2017. (19) Although women perform well on education-related GPI indices, their labor force participation in Turkey is significantly lower than men at 33.27%. (20)"
Investment opportunities
COVID-19 has demonstrated the importance of investing in education technologies and remote learning systems. Moreover, due to the refugee crisis and the changing dynamics of the labor market, segments of the population are being pushed into informality. Vocational training and certification prove essential in this context.
Key bottlenecks
There are significant supply-chain constraints in some regions, especially for remote learning systems, due to the inadequacy of the communications and internet infrastructure. Moreover to translate into job market results, learning outcomes have to be certified-especially for new entrants in the domestic market such as the refugees.
Pipeline Opportunity
Investment in Vocational Training Certification Programs
Providing digital training and certification services attesting to the employability skills and technical or vocational qualifications of the workforce
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
15% - 20%
Number of vocational training qualification centers & The number of jobs requiring VT certification
Globally, the Digital Badges Market size is set to grow at a compound annual rate of growth of 19.4% during the forecast period of 2020-2025. The market is estimated to reach $292.2 million by 2025. (8)
There are 229 vocational qualification centers in Turkey. 143 professions require a government-approved VT certificate.
Indicative Return
> 25%
Interviewed local service providers in this field estimate an IRR between 20-40% from investments in this model.
Investment Timeframe
Short Term (0–5 years)
Investments in vocational training certification services are likely to accrue profits in less than five years as they do not require complex establishment processes or hard capital in the initial stages.
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Capital - Limited Investor Interest
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Although significant strides have been made in the provision of accesible education, challenges remain in the inclusion of disadvantaged groups, compatibility of the education system with the changing labor market dynamics and the quality of the services
Around 143 professions in Turkey such as thermal insulation personnel, maintenance & care staff for electricity networks, electricity network scada operators, metal workers require a vocational qualification certificate.
Gender & Marginalisation
"Share of female students in secondary education enrolled in vocational programmes (%) in Turkey was reported at 22.38 % in 2017 (19). The women's labor force participation rate in Turkey is significantly lower at 34.3% than the labor force participation rate of men, 72% (20)."
In 2020, the share of the informal workers without any form of social security within the Turkish workforce was at 32.9%. (21)
Expected Development Outcome
"Improve long term labor market prospects by communicating accurate information about vocational skills and enhancing the occupational literacy and the level of skills in the labor force"
Increase access to formal employment opportunities
Gender & Marginalisation
Reducing Female / Inmigrant / Rural education access gaps, increase education levels
Decrease the rate of informality in the economy by providing skills training and certification
Primary SDGs addressed
4.2.2 Participation rate in organized learning (one year before the official primary entry age), by sex
4.3.1 Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex
4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
4.6.1 Proportion of population in a given age group achieving at least a fixed level of proficiency in functional (a) literacy and (b) numeracy skills, by sex
74.8 % - Female 75.5% - Male (in 2017) (9)
43.8 % - Female 54.1 % - Male (in 2016) (11)
Transferring files between a computer and other devices - 64.1%, Installing software of applications - 61.1%, Changing the settings of any softwarre 35.9%, Copying or moving a file or folder - 74.7% (…) (in 2017) (12)
Adult total literacy rate - 96.15%, male - 98.82 %, female - 93.5% (in 2017) (13)
100% (10)
not available
not available
100% (10)
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Outcome Risks
The over-provision of vocational certificates for jobs that do not require training might put those with non-certifiable soft-skills at a disadvantage in the labor market.
Over-skilling might lead to further unemployment and labor-market mismatch if high-quality jobs do not exist in the labor market (the supply of a particular skillset might exceed the demand). (12)
Impact Risks
Allignment risk Evidence risk Stakeholder participation risk
Impact Classification
What
Important, positive outcomes: improved employability skills.
Risk
Low Risk (There is a risk of insufficient recognition or under-provision by the labor market as well as lack of coherence with other measures and existing policies.)
Impact Thesis
Vocational training services will develop essential skills among the Turkish workforce and promote wider access to the labor market through increased skills documentation.
Enabling Environment
Policy Environment
11th Development Plan: Vocational training and certification efforts are mentioned in terms of integrating the groups outside of the labor force through training opportunities and improving the existing trainings to include digital competencies
(Sustainable Development Goals Evaluation Report):The Sustainable Development Goals Evaluation Report from the Directorate of Strategy and Budget: Encourages life-long learning opportunities through a variety of methods including vocational training and skills development
(2020 Presidential Program): The 2020 Presidential Program stresses the need to develop the human resources of the country in a way that produces positive economic and social externalities and the importance of ensuring the accessibility of education and the availability of lifelong education opportunities
Financial Environment
Financial incentives: Those who possess the Vocational Qualifications Authority licensed Vocational Qualification Certificate can benefit from the Unemployment Insurance Fund up to 54 months in paying insurance premiums.
Fiscal incentives: KOSGEB Qualified Employee Support: Companies who employ individuals who have recently been issued a Vocational Qualifications Authority licensed Vocational Qualification Certificate can receive up to 1500 TL per month.
Financial incentives: Companies who seek consultancy services on certain subjects from those who received the Vocational Qualifications Authority licensed Vocational Qualification Certificate will receive financial support from KOSGEB.
Regulatory Environment
Article 17 of the Regulation #6331 on Vocational Health and Safety: Deems it obligatory to receive vocational training for employees working in "risky and high-risk" occupations. This law was amended and later on accepted as Law #6645 on the 4th of April 2015
The Vocational Qualification Certificate: issued by the Vocational Qualifications Authority (Mesleki Yeterlilik Kurumu) and/ or the license to issue this certficate is given to other institutions that are approved by the Vocational Qualifications Authority. (15)
The Regulation on Work Permit for Foreigners under Temporary Protection: Adopted January 15, 2016, the regulation outlines procedures for granting work permits to persons under temporary protection. (16)
TURKAK: Accreditation is required.
Marketplace Participants
Private Sector
Domestic and international banks providing individual lines of credit for education expenses such as Is Bank, Halk Bank, Deniz Bank, Ziraat Bank,HSBC, Koc Finans. Digital credentials companies like Sertifier and vocational training or education providers
Government
Ministry of National Education, Ministry of Family, Labour and Social Security, İŞKUR, Vocational Qualifications Authority and the Ministry of Industry and Technology, TURKAK
Target Locations
Turkey: Eastern Anatolia Region
Turkey: Mediterranean Region
Turkey: Southeastern Anatolia Region
References
- (1) Sustainable Development Report Dashboard 2020, OECD Members, Turkey, https://dashboards.sdgindex.org/?fbclid=IwAR1tzYVKRXvPD2mwfvhf-mLTGGQEjA76y_HlrprWhSzNYZcqrLZMLXzRIcI#/TUR
- (2) 11th Development Plan http://www.sbb.gov.tr/wp-content/uploads/2020/03/On_BirinciPLan_ingilizce_SonBaski.pdf
- (3) 2020 Annual Presidential Program, http://www.sbb.gov.tr/wp-content/uploads/2019/11/2020_Yili_Cumhurbaskanligi_Yillik_Programi.pdf
- (4) Sustainable Development Goals Evaluation Report from the Directorate of Strategy and Budget
- (5) Mesleki Yeterlilik Kuruşu Web Portalı, Yetkilendirilmiş Belgelendirme Kuruluşları, https://portal.myk.gov.tr/index.php?option=com_kurulus_ara&view=kurulus_ara#&Itemid=322
- (6) TURKSTAT, Labor Force Statistics, Labor Force Statistics Regional Results, Results for 2014 and Beyond, http://www.tuik.gov.tr/PreIstatistikTablo.do?istab_id=2319
- (7) International Labour Organization, ILO’s support to refugees and host communities in Turkey, https://www.ilo.org/ankara/projects/WCMS_379375/lang--en/index.htm
- (8) Industry Arc, Digital Badges Market - Industry Analysis, Market Size, Share, Trends,Application Analysis, Growth and Forecast 2020 - 2025
- (9) Turkey's Sustainable Development Gaols 2nd VNR 2019 https://sustainabledevelopment.un.org/content/documents/23862Turkey_VNR_110719.pdf
- (10) SDG Index & Dashboard https://dashboards.sdgindex.org/profiles/tur/indicators
- (11) Turkey's Sustainable Development Gaols 2nd VNR 2019 https://sustainabledevelopment.un.org/content/documents/23862Turkey_VNR_110719.pdf
- (12) Turkey's Sustainable Development Gaols 2nd VNR 2019 https://sustainabledevelopment.un.org/content/documents/23862Turkey_VNR_110719.pdf
- (13) Statista - Turkey Literacy Rate from 2007 to 2017 https://www.statista.com/statistics/575187/literacy-rate-in-turkey/
- (14) International Labour Organization, Understanding the potential impact of skills recognition systems on labour markets: research report
- (15) Mesleki Yeterlilik Kuruşu Web Portalı, Yetkilendirme ttps://www.myk.gov.tr/index.php/tr/yetkilendirme
- (16) Asylum in Europe, Access to the Labour Market-Turkey, https://www.asylumineurope.org/reports/country/turkey/access-labour-market-0
- (17) TURKSTAT, Labor Force Statistics, Labor Force Statistics Regional Results, Results for 2014 and Beyond, http://www.tuik.gov.tr/PreIstatistikTablo.do?istab_id=2319
- (18) SDG Tracker, 2020, https://sdg-tracker.org/
- (19) Trading Economics, World Bank Turkey Statistics 2017, https://tradingeconomics.com/turkey/indicators-wb-data.html?g=education
- (20) World Bank, Labor Force Participation 2020, https://data.worldbank.org/indicator/SL.TLF.TOTL.FE.ZS?locations=TR
- (21) Turkish Statistical Institute, 2020, https://data.tuik.gov.tr/Bulten/Index?p=Isgucu-Istatistikleri-Agustos-2020-33792
- (22) Turkis Statistical Services, 2021. https://cip.tuik.gov.tr/.