The Department of Labor’s Employment and Training Administration has issued a Training and Employment Guidance Letter (TEGL) on supporting entrepreneurial and self-employment training through the workforce investment system.
The purpose of the TEGL is to encourage states to establish parameters for funding such training under Title I of the Workforce Investment Act which authorizes the provision of entrepreneurial training to adult and dislocated workers, and authorizes entrepreneurial work experiences for youth. The TEGL replaces an earlier guidance letter and provides more detailed information about designing and implementing entrepreneurial and self-employment training strategies for adults, dislocated workers, and youth, and provides guidance about allowable costs and outcome tracking. The TEGL notes that entrepreneurship and small business development have been identified as an important employment option for populations that have challenges to employment. For example, self-employment may offer individuals with disabilities greater workplace flexibility and income opportunities. The TEGL identifies self-employment as a potential strategy for Disability Employment Initiative (DEI) grantee states. The guidance letter describes a variety of ways in which the workforce investment system can support entrepreneurship and self-employment. The TEGL also addresses performance accountability issues and suggests strategies such as using supplemental data sources and administrative records to assist in reporting on employment, retention and earnings measures.