The Learning Fund Program sponsored by PENMAS, the Indonesian Directorate of Community Education, successfully uses community-based learning activities to promote entrepreneurship and managerial skills among Indonesia's rural poor. Currently, the program integrates the learning, financial, and equipment resources necessary to help over 5,400 small groups of uneducated and underemployed people between the ages of 12 and 45 start or expand small-scale productive activities involving cottage industries, skilled trades, or agricultural projects. PENMAS selects the recipients of assistance based on the groups' organization, leaders, plans, business activities, and cooperative structure. In addition to financial assistance, the program provides materials development, staff training, interagency coordination, and evaluation and monitoring. Fieldworkers teach basic managerial skills and attitudes by helping recipients clarify existing resources, needs, and interests, and by introducing bookkeeping procedures, production plans, capital management, and personnel administration according to the group's needs. PENMAS either provides learning and financial support concurrently to new groups and organizes ventures to use their skills or assists small groups in their existing enterprises. Both implementation models have advantages and disadvantages. Guidelines for program implementation are included to help other nonformal education policy makers and practitioners in similar small business and income-generating activities. (SB)