1. DRS 255 DISABILITY AND LIVELIHOOD
TOPIC THREE
ACCESSING FINANCIAL RESOURCES, DEVELOPING SIMPLE
BUSINESS PLANS, MICRO CREDIT AND FUNDING AGENCIES AND
GOVERNMENT SUBSIDIES
ENTREPRENEURSHIP
A Brief History of the Term Entrepreneur
The word 'entrepreneur' derives from French, literally meaning someone who 'takes between'or
'goes between'. The earliest use of the term reflected this sense of the 'middleman' whodirected
resources provided by others. In the Middle Ages, an entrepreneur was someone whomanaged
large projects on behalf of a landowner or the church, such as the building of acastle or a
cathedral. In the 17th century, the concept was extended to include some elementof risk and
profit. Entrepreneurs were those who contracted with the state to perform certainduties, such as
the collection of revenues or the operation of banking and trading services. Asthe price was
fixed, the entrepreneur could profit - or lose - from their performance of thecontract.
Richard Cantillon introduced the word into economic literature in 1734 when hedescribed three
types of agents in the economy: the 'landowner' who as the proprietor of landprovided the
primary resource, 'entrepreneurs', including farmers and merchants, whoorganized resources and
accepted risk by buying 'at a certain price and selling at an uncertainprice', and 'hirelings' who
rented their services.
J. B. Say, a French economist writing in theearly 1800s, distinguished between the profits of
those who provided capital and the profitsof entrepreneurs who used it. He defined an
entrepreneur as 'someone who consciouslymoves economic resources from an area of lower and
into an area of higher productivity andgreater yield'. In other words, the entrepreneur takes
existing resources, such as people,materials, buildings, and money, and redeploys them in such a
way as to make them moreproductive and give them greater value. This definition implies
changing what already exists;it sees the entrepreneur as an instrument of change, someone who
does not seek to perfect oroptimize existing ways of doing things, but searches instead for new
methods, and newmarkets - different ways of doing things.
In the mid-twentieth century, Joseph Schumpetertook up this theme of the entrepreneur as a
necessary destabilizing force. According toSchumpeter, economic equilibrium, which optimizes
what already exists, does not createhealthy economies. A dynamic economy takes as its norm the
disequilibria brought about bythe constant change of innovation and entrepreneurship.
In the 1980s, Peter Drucker developed these earlier ideas, seeing the emergence of
anentrepreneurial economy in the USA as a 'most significant and hopeful event'. He defined
anentrepreneur as someone who 'always searches for change, responds to it, and exploits it as
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2. anopportunity'. He thus made innovation a necessary part of entrepreneurship. In doing so,
hefocused on the management processes involved in what an entrepreneur does.
David McClelland also said Entrepreneurs are persons who have a high need for achievement.
McClelland’s basicpremise is that individuals with a high need to achieve will
exhibitentrepreneurial behaviour.
The following are some of the motivating factors of entrepreneurs.
a) Displacement leading to a need to survive
b) An innate or acquired need to achieve goals of a monetary, social or political nature
c) Curiosity and a need to exercise an innovative mind
d) The possession of the relevant entrepreneurial traits and technical and managementskills
e) Need for higher returns on time and money invested
f) Restlessness due to frustration of one kind or another
g) Need for independence and self-determination
h) Need for financial, social or political security
Furthermore, Entrepreneurs create products, services and jobs. They expand economies,
improve people's lives, provide employment (high and rising wages) and bring about
competition. A competitive environment, in turn, gives rise to efficiency, meritocracy and
further innovations and entrepreneurial drive.The potent combination of entrepreneurship and
technological innovation can forge an environment that is conducive to further enterprise,
involving even government policy in supporting entrepreneurship and innovation.
ENTREPRENEURSHIP COMPETENCIES
Management Competency
Management competencies relate to managing key functions of the enterprise. Researchindicates
that problems in young firms are most likely to arise in the areas of marketing,finance and the
management of people. The competency to deal with these areas dependsparticularly on the
entrepreneur in the early years of their venture when they are less likely toemploy specialists.
The model entrepreneur has all-round competency in these keymanagement functions.
Leadership
A leader is one who influences and inspires others to attain goals. Outstanding leaders have
avision. A vision is a mental image of a possible and desirable future state of the enterprise.Itis
an ideal future that goes beyond the ordinary and perhaps what other thought possible. Thevision
provides a direction in which the leader wants the enterprise to move.
Arthur Jagoprovides the following definition: Leadership is both a process and a property.The
process of leadership is the use of non-coercive influence to direct and coordinate theactivities of
the members of an organized group toward the accomplishment of groupobjectives. As a
property, leadership is the set of qualities or characteristics attributed to thosewho are perceived
to successfully employ such influence.Outstanding leaders have a vision. A vision is a mental
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3. image of a possible and desirablefuture state of the organization. It is an ideal future that goes
beyond the ordinary and perhapsbeyond what others thought possible. The vision provides the
directions in which the leaderwants the organization to move.
Managers at all levels can formulate visions for their organizations or units. Their visionsshould
be ethical and based on a realistic assessment of resources and stakeholders needs. Inadditions,
leaders need to study abreast of environmental changes. Although effective leaderspreserve in
the face of obstacles, they need to recognize when new circumstances dictate theneed for a new
vision.
Marketing Competency
Marketing can be defined as a small business function and a set of processes for
creating,communicating and delivering value to customers and for managing customer
relationships inways that benefit the small business owner. It can also be defined as a way of
choosing targetmarkets and getting, keeping and growing customers through creating, delivering
andcommunicating superior customer value than competitors. The essence of any
marketingeffort is satisfying customers better than competitors.
From the above definitions, the following are the key points;
1) Marketing is A business function
This suggests that marketing is a deliberate activity within an enterprise. Enterprises areexpected
to carry out marketing campaigns in order to be able to get customers. They cannotassume
customers will automatically know what they are offering and will buy without anypersuasion.
Marketing is not a single activity but a process. It is the process for creating, communicatingand
delivering customer value. The small business owner creates a product or service,ensures that
consumers are aware of it mainly through promotion activities and takes theproduct or service
where the customers are. It is also a process of managing customerrelationships. This is
concerned with ensuring that customers are happy about your productsor services because you
provide superior value than your competitors. The customer gives outhis/her money for
something that is of value to him/her.
2) Marketing is concerned with getting, keeping, and growing customers
Marketing involves attracting, retaining and increasing customers. Without attracting,retaining
and cross selling the enterprise success is doubtful. A small business owner shoulddevise ways
of attracting, retaining and increasing their customers. To attract and retain thecustomers an
enterprise can use a host of strategies like offering discounts, providing superiorproducts and
good customer care.
3) Marketing involves identifying, anticipating and satisfying customers’ needs
An enterprises’ major role is to identify customer needs and satisfy them more thancompetitors.
Therefore marketingresearch is at the heart of any marketing activity.
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4. Enterprises should also anticipate customer needs and satisfy them. They should not onlysatisfy
customers current needs but should be innovative by developing offers that will makecustomers
life more enriching. According to Prof Stephen Brown of Ulster University if anenterprise pays
too much attention to what customers say are their needs and wants, anenterprise will simply
make products similar to those that already exist. Consumers start fromwhat they know, not from
what might be possible. It is the entrepreneurs’ job to go beyondwhat customers say they want.
This calls for innovation.
4) Marketing involves choosing customers
Marketing is concerned with choosing the consumers to serve. In most cases an enterprisecannot
be able to serve all the consumers. It must choose those that can be served effectivelyand
efficiently. The choice of customer is at the heart of marketing. It determines all the
othermarketing decisions like what to produce, the price to charge, how to promote and
distributeand a host of similar decisions.
5) Marketing involves satisfying customers at a profit
Marketing activities are geared toward maximizing profits. The role of a small businessowner is
to satisfy customer’s needs and at the same time make profits. The role is not just tomake the
customers life pleasurable but also to make money for the enterprise.What is marketed?
According to Kotler and Keller (2006) marketers are involved in marketing 10 types ofentities:
goods, services, experiences, events, persons, places, properties, organizations,information and
ideas.
(i) Goods
These are physical commodities that may be produced and marketed by an enterprise.
Theyconstitute the bulk of most countries production and marketing effort.
(ii) Services
They are intangible, inseparable and perishable. They cannot be seen or heard
beforeconsumption. They cannot be separated from the supplier and also if the consumer is
notavailable at the point of delivery that would represent lost earnings. Examples of
servicesinclude the clinics, hotels and restaurants, hair salons, barber shops, schools, banks,
lawfirms, car rentals, cleaning services and many others.
(iii) Events
Marketers also promote time based events such trade fairs, artistic performances
andanniversaries. Global sporting events such as world cup, Olympics and commonwealth
gamesare promoted aggressively to companies and fans. These events have led to emergence
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5. ofevent management professional that work out details of an event and ensure that it is
doneeffectively and efficiently.
(iv) Experiences
By arranging several services and goods, a firm can create stage and market experiences.
Forexample a hotel can provide live music band concerts as customers enjoy their meals.
Somecompanies also market experiences such as climbing Mount Afadjato or visiting Kakum
National Park.
(iv) Persons
Marketing of persons has become a major business. Major film stars, athletes, soccer stars,artists,
musicians and others have agents and managers who market them to organizations.They are used
in endorsing products and services. Others market themselves directly such asthe politicians.
(v) Places
Countries, regions and cities compete actively to attract tourists, investors, companyheadquarters
and new residents. Some places are known for certain things or events. Forexample, the Vatican
is a spiritual city; Mombasa is associated with leisure, while WaltDisneyland is associated with
cartoon.
(vi) Properties
They are intangible rights of ownership of either real property (such as land or building)
orfinancial property (stocks and bonds). Properties are bought and sold and this
requiresmarketing. Real estate agents market houses on behalf of their owners. Commercial
banksand investment companies sell financial securities to organizations and individuals.
(vii) Organizations
Organizations actively work to build a strong, favorable and unique image in the minds oftheir
publics. They spend money on corporate identity advertisements. Universities,museums,
performing arts organizations, churches and non-profits organizations all usemarketing to boost
their public images and to compete for audiences and funds.
(viii) Information
Information can be produced and marketed as a product. This is what universities and
schoolsproduce and distribute at a price to parents and students. Non-fiction books
marketinformation.
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6. (ix) Ideas
Every market offering includes a basic idea. Products and services are platform for
deliveringsome idea or benefit. Social marketers are promoting such ideas as ―friends don’t let
friendsdrive drunk‖ and ―A mind is terrible thing to waste‖.
Finance Management Competency
Financing is responsible for obtaining and using funds in a way that will maximize the valueof
the enterprise. Proper financing will enable any firm to provide better products/services toits
customer at lower prices, pay higher wages and salaries to its workers and also providegreater
returns to the investors. Sound financing contributes both to individuals of any giveneconomy as
a whole. Financing includes the following duties:
a) Budgeting
b) Raising funds in the capital market
c) Evaluating investment projects
d) Planning the firm’s marketing strategies
HOW TO WRITE A BUSINESS PLAN
INTRODUCTION
Are you thinking about starting a business? Have you got a Plan? That’s Plan with capital ―P‖
for Business Plan. If you haven’t written your plan yet, your business is still in the fantasy stages.
A company’s business plan is what lenders such as banks and other sources of funding use in
deciding to lend you money. It’s the main company document that your employees -- and you --
use to gauge your company’s success and to make decisions about what you should do first,
second, or not at all.
If you are starting a home-based business on a shoestring, some of these suggestions probably
may not be necessary, but you still should create a plan that outlines your goals, expected costs,
marketing plan and exit strategy. A business plan is your road map for how you expect to
succeed and how you will measure your success.
WHAT IS A BUSINESS PLAN?
A Business Plan can be defined as a document that provides a synthetic (Unreal, Artificial,
Mock) view of the contents and characteristics of a new entrepreneurial project, or the
perspectives to develop an existing one. It is an expression of why your Business is going to be
a success.
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7. Fundamental or Key Success Factors of a Business
1. It must have a clear business concept
2. Appropriate strategy
3. Workable document as a guide
4. Thorough market research
5. Availability of Raw materials
6. Conducive business Environment
7. Competent Human Resources
8. Good leadership
9. Financial Sustainability
10. Clear Vision
11. Understanding the culture of your market place
12. Networking
Environmental Scan (PEST Analysis)
a) Political – Backing from Government or its institutions
b) Economic – Funding sources, is the Env’t difficult to trade in? etc
c) Social – Multi cultural,
d) Technological – What technology or innovation are you introducing?
Here is a quick nine-step guide to what you will need in your company’s business plan:
1. An executive summary outlining goals and objectives. The executive summary
introduces your business strategy and probably is the most important section for lending
institutions. If you can’t persuade a loan officer in the first two or three pages that you’ve
got a viable business proposal, you’re going to leave empty handed. This summary is also
important as a communication tool for employees and potential customers who need to
understand -- and get behind -- your ideas.
2. A brief account of how the company began. Clearly explain the origins behind the
company’s creation and how you or your business associate came up with the idea to start
your business.
3. Your company’s goals. Explain in a few paragraphs your short and your long term-goals
for your company. How fast do you think it will grow? Who will be your primary
customers?
4. Biographies of management team. The management section should include the names
and backgrounds of lead members of the management team and their respective
responsibilities.
5. The service or product you plan to offer. A key aspect of this section will be a
discussion of how your product or service differs from everything else on the market.
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8. 6. The market potential for your service or product. Remember that you’ve got to
convince lenders, employees and others that the market you’re after is relatively large and
growing. You’ll need to do some research for this section. If it’s a locally based business,
you need to assess the demand for your offering within xx-mile radius, based on what
you determine is a reasonable distance from your business. If it’s a Web-based business
or a business that relies on both the Internet and local traffic for revenues, you’ll need to
evaluate demand on a local and/or a national basis. A research report from sites such as
Forrester Research can cost hundreds to thousands of dollars. But you may be able to get
some basic information simply by using the Web and its many engines and directories.
7. A marketing strategy. How do you plan to tell the world you’re open for business? Will
you rely exclusively on word of mouth (not a good plan unless you’ve already got a
reputation)? Will you advertise in print, television or on the Web (or on all three)? Will
you use online marketing tools to get your company listed on search engines and
advertised on other web sites? You’ll also need to include how you plan to spend on
marketing.
8. A three- to five-year financial projection. This section should include a summary of
your financial forecasts, with spreadsheets showing the formula you used to reach your
projections. You’ll need balance sheets, income statements and cash flow projections for
the entire forecast period. The summary in this section is also where you would tell
prospective lenders how much money you’d like to borrow to cover your startup costs.
The assumption that you make in this section will make or break your company’s
success. If you’re unsure about using this kind of financial modeling, find a professional.
It’s worth the money.
9. An exit strategy. All good business plans include a section that lays out the benchmarks
you’ll use in deciding to call it quits. The strategy could be based on a dollar figure,
revenue growth, the market’s reception to your idea, or a consensus among top officers.
IDENTIFYING BUSINESS OPPORTUNITIES
I will like to use the example given by a renowned scholar, C.K. Prahalad, a Harvey C. Fruehauf
Professor ofCorporate Strategy and International Business,The University of Michigan Business
School, who wrote a book titled ―The Fortune at the Bottom of the Pyramid‖.
 His perspective was that if we stop thinking of the pooras victims or as a burden and
start recognizing them as resilient and creative entrepreneurs and value-conscious
consumers, a whole new world of opportunity will open up.
 Four billion poor can be the engine of the next round of global trade and prosperity. It can
be a source of innovations.
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9. THE MARKET AT THE BOTTOM OF TE PYRAMID
According to Prahalad, the distribution of wealth and the capacity to generate incomes in the
world can be captured in the form of an economic pyramid.
At the top of the pyramid are the wealthy, with numerous opportunities for generating high levels
of income. More than 4 billion people live at the BOP on less than $2 per day.
This is where the market is. To enter into such a market therefore one will need innovation and
technology.
THE MARKET AT THE BOP
There is significant untapped opportunity for value creation (for BOP consumers, shareholders,
and employees) that is latent in the BOP market. These markets have remained ―invisible‖ for
too long.
That is why we as young Entrepreneurs must take advantage of this market down there and
create opportunities for ourselves. We must understand what the poor need and create value for
them by so doing we will be on the path of creating profitable ventures.
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10. ACCESSING FINANCIAL RESOURCES
Finance is the money available at the right price,at the right time, obtained at the lowest costto
spend on business needs. Right from the moment someone thinks of a business idea, there needs
to be cash. As the business grows, there are inevitably greater calls for more money to finance
expansion and also take care of the day to day running of the business.
The main reasons a business needs finance are to:
1. Start a business
2. Finance expansions to production capacity
3. Develop and market new products
4. Enter new markets
5. Take-over or acquisition
6. Moving to new premises
7. Pay for the day to day running of business
A business needs to assess the different types offinance based on the following criteria:
1. Amount of money required
2. How quickly the money is needed
3. The cheapest option available
4. The amount of risk involved in the reason for the cash
5. The length of time of the requirement for the finance
Short Term and Long Term Finance
Short term finance is needed to cover the day to day running ofthe business. It will be paid back
in a short period of time, soless risky for lenders.
Long-term finance tends to be spent on large projects that willpay back over a longer period of
time. More risky so lenderstend to ask for some form of insurance or security if thecompany is
unable to repay the loan. A mortgage is anexample of secured long-term finance.
The main types of short-term finance are:
Overdraft
Suppliers credit
Working capital
The main types of long-term finance that is available to a business are:
Mortgages
Bank loans
Share issue
Debentures
Retained profits
Hire purchase
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11. Equity Finance
Equity finance is the money provided by the owners of the business.
Sole traders and Partnerships: A sole trader will provide money from his or her own savings.
A sole trader may find it difficult to raise much money from this sourceand, therefore, may take
on a partner who brings money into thebusiness.
FUNDING AGENCIES IN GHANA
These are made up of the following:
BANKS: Examples are: ADB, GCB, NIB ete.
FINANCIAL SERVICES COMPANIES: Examples are: Bayport Financial Services, NDK
Financial Services, Bond Financial Services, etc.
SAVINGS & LOANS COMPANIES: Examples are: Procredit, Unicredit, Express, First Allied,
First Capital Plus, etc
MICRO FINANCE INSTITUTIONS: Examples are: Excess Development Ltd, Blue Financial,
etc.
EQUITY & VENTURE CAPITAL COMPANIES: Examples are: Data Bank Group, HFC Bank,
Ghana Venture Capital Trust Fund, Bedrock, Venture Capital Finance Company, Oasis Capital
AGENCIES THAT ASSIST ENTREPRENEURS
The African Network Of Entrepreneurs (TANOE)
This is a limited by guarantee organization that seeks among other things to assist African
entrepreneurs to build sustainable businesses. TANOE serves as a hub of hope for entrepreneurs
who desire to live their dreams and are passionate about gaining the requisite knowledge to
better position them to move ahead of their competitors and fulfill their ambition of building a
sustainable business.
We are dedicated to helping entrepreneurs succeed. Our initiatives and programs are focused on
building a strong entrepreneurial environment enabling entrepreneurs to access needed resources
and relevant information to polish their ideas, build their businesses and accelerate their business
growth.
SevenFund.com
SEVEN (Social Equity Venture Fund) is a virtual non-profit entity run by entrepreneurs whose
strategy is to markedly increase the rate of innovation and diffusion of enterprise-based solutions
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12. to poverty. It does this by targeted investment that fosters thought leadership through books,
films and websites; supporting role models - whether they are entrepreneurs or innovative firms -
in developing nations; and shaping a new discourse in government, the press and the academy
around private sector innovation, prosperity and progressive human values.
SEVEN is a leader in the field of Enterprise Solutions to Poverty. We ask the question, ―How do
we support those who are self-determined, action-oriented, and effective?‖ We find and invest in
the innovations of pioneering thought leaders and entrepreneurs inside the world’s poorest
nations; we support contrarian research, films, books and competitions that spotlight new role
models and diffuse their best ideas.
Ghana Start Up Capital Fund
GSC Fund Brief: The Ghana Start-Up capital fund is a private sector (non-profit) and a self-
help initiative set-up in 2011 to massively promote entrepreneurship, provide needed support and
resources to entrepreneurs, create jobs and reduce unemployment, provide skills development
and knowledge transfer.
Vision of Fund: To raise, in a decade, GH¢10,000,000 (Ten Million Ghana Cedis) through
donations and contributions by entrepreneurs, individuals, organizations, local and international
donors, investments and fund-raising activities to support the development of entrepreneurship
and to invest in innovative and economically viable ideas and start-up businesses.
Objectives of the Fund:
The GSC Fund seeks to meet the following objectives:
I. To create an enabling environment for the massive growth of entrepreneurs and the
actualization of innovative ideas and sustainability of start-up businesses through the
provision of needed resources and support.
II. To build the skills and capacity of the youth in Ghana
III. To contribute to Nation Building and Economic Development
IV. To help eradicate extreme poverty and hunger by reducing unemployment especially
among the youth in Ghana (MDG 1)
V. Support and empower women to build global entrepreneurial businesses thereby
promoting gender equality (MDG 3)
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13. VI. To develop global partnerships to ensure the sustainably of the Fund and the continuous
fulfillment of the fund’s vision, objectives and functions (MDG 5)
VII. In influence, challenge and advocate for favorable policies to ensure the sustainability
and global competitiveness of Ghanaian entrepreneurs.
STARTING AN NGO IN GHANA
This covers five main steps essential to setting up an NGO in Ghana. The first two are generic
steps foranywhere in the world. The final three steps are for Ghana, specifically. Feel free to
share this document with anyonewho may be starting their own NGO anywhere.
1. Develop Your Vision and Mission
2. Develop Goals and Objectives
3. Set up a Board of Directors
4. Draft a Constitution
5. Register the Organization in Ghana
1. Develop Your Vision and Mission
You need a compelling vision and genuine commitment to that vision for the long-term. If you
do things right you will goMaD (making a difference) in a way that fully benefits your target
communities.Vision and Mission will explain your organization’s existence and focus its
activities. And, this will ―sell‖ your NGO to theworld.Writing a vision and mission is like
crafting an elevator pitch: make it short, clear and a little intriguing.
The difference between a Vision and a Mission
Vision
Your NGO’s vision is what the community would be if the problem is solved. A vision is the
"ideal situation" that you hopeto achieve.At the most basic level, your vision could be ―World
Peace‖.Your mission would be to ―eradicate conflict by…‖ and listing ways to do this. An eg of
a vision is ―Economic independence and environmental regeneration for impoverished
communities in Ghana.‖Establishing a meaningful vision requires consultation and time. You
must identify a problem that requires a solution.Sometimes this is very complex and technical
and sometimes it is simple.The best way to determine the vision, and thus problem to be solved,
is to spend time with your target group/s to learntheir needs, aspirations and future goals. The
ability to be flexible and to listen is important. It’s important to get it rightnow, before you start
down the wrong path.
You might want to bring technology to help a community travel faster between two villages, but
the community mightreally want and need a health clinic. Just because you have something to
offer, does not mean that it is helpful to thecommunity. You must learn to adapt your offer to the
needs.You should research organizations similar to the one you are starting to ensure you are not
be duplicating the work ofother groups. It is more beneficial to address a neglected need, than a
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14. need that is already catered for, unless the othergroups are not doing a good job. In that case, you
can attempt to do better.Your ideal community after the problem is solved is, therefore, the basis
of your NGO’s vision.Why don’t you try thinking about the problem in the community that you
could solve and how it would look when it’s solved? Then try writing that vision in less than 30
words.
Mission
If your vision is ―to help impoverished communities in Ghana become economically independent
and environmentallysustainable,‖ then addressing this vision becomes the mission of your NGO.
In other words, the mission is the ―how‖ of your NGO. How you will get it done—in a few short
sentences.
The mission consists of specific goals.
For example, a Foundation’s mission statement is:―To help impoverished communities develop
sustainable sources of income and establish practices that will regenerate thelocal environment
for current and future generations‖.We also express this in a ―tag line‖: Income generation, re-
generation, and next generation.Income generation refers to the projects we are developing to
create sources of income, re-generation refers to theenvironmental work we are doing to ―re-
generate‖ the environment in the communities where we are working on incomegeneration, and
next generation refers to the future and the legacy we aim to leave.Your NGO’s mission
statement will serve as a guide for the direction of your organization. It will also clearly explain
yourfocus to donors and the general community. Basically, it’s the steering wheel of your
organization. You wouldn’t drive aCar without a steering wheel certainly and you will probably
not drive an NGO without a vision and mission.The statement should be concise and incorporate
the core values and philosophy of your NGO.What is your NGO’s vision and mission? Can you
express them in less than 30 seconds and less than 30 words? If not, tryrethinking and re-crafting
them on paper.
2. Establish Goals and Objectives
Establishing the goals and objectives of the non-profit or NGO is the next thing to do after
determining the vision andmission. This is the same for any organization, small or large, and is
fundamental to organizational development.Let’s talk about the difference between goals and
objectives. Goals are the big hitting changes you aim to make happen.Your goals might be stated
in your vision statement.You know: World peace, eradicating extreme poverty, providing a
community drop-in house, establishing a fair trade shop,or setting up a soup kitchen.
Objectives are actions that lead you towards achieving your goals, one by one.Projectsmart.co.uk
says this: ―Poorly defined goals and objectives, or goals without objectives, pushes a project
intooverruns, territory battles, personality clashes, missed milestones, and unhappy clients. Goals
and objectives must beclear statements of purpose that drives the end result of the project.‖What
this says is that things will get messy without goals and objectives. So, let’s get to it.Goals are
the ―What‖: What you’re aiming for.If playing football it would be: ―Score 3 goals.‖Objectives
are the ―How‖ you’ll get there: ―Kick the ball between the goal posts.‖There’s no point
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15. attempting to reach your goal if you don’t actually do anything to get there. If you don’t kick that
ballyou are not going to score one goal.It’s smart to start your objectives with action verbs. They
are ―actions‖ after all.
Instead of: ―the ball kicked between the posts‖ Write: ―kick the ball between the posts.‖ The
second sentence is stronger.Instead of: ―The delivery of 20 mosquito nets to Mampong‖ write
―deliver 20 mosquito nets to Mampong.‖This is really a language issue and the aim is to keep it
simple and strong. Start with action.On the subject of ―smart‖, if you’re familiar
withorganizational development you would know that objectives should beSMART:
Specific
Measurable
Achievable
Realistic
Timebound
Let’s say your goal is to establish a fair trade shop selling products from Africa, starting with
coffee, and then one of yourmain objectives would look like this:Identify 20 cooperatives
producing fair trade coffee in East Africa by September 2010―Identify‖ is a nice, strong action
verb to begin with.But is this a SMART objective?Let’s see.
Specific? Yes. In other words, the opposite of vague. We identify the number of cooperatives,
the location and the date.We will know if we do not meet this objective.
Measurable? Yes. ―20‖ and ―September 2010‖ are very measurable objectives and we will
know absolutely whether wemeet these or not. There is no scope for ambiguity.
Achievable? This is more subjective, but if it’s April now, this is certainly achievable. (This
work is not for the lazy.) 20might be pushing it, though. We might have to revise this objective.
Realistic? A goal might be achievable, but you need to ask if you have the resources—technical,
financial, human—torealistically do it? If your objective is to identify 20 cooperatives and you
have no access to the internet, a telephone or afax, then it’s probably not realistic. If you do,
however, then it is a realistic objective. When you’re writing an objective,
be honest with yourself about your limitations and abilities. If you need help, seek it.
Time bound? Yes. This means you put a date on it. Our objective is beautifully time bound and
we will certainly know if,when September rolls around, we have not met it.
So, you have goals and your SMART objectives. Your goals will be few and your objectives will
be many—and SMART!Try applying the SMART formula to your own organizations objectives
and see if there are ways you can refine them to beSMART.Doing good takes more than good
intentions; it takes a lot of bad-ass planning too.We could also put it like this:―Goals are the
things your NGO will do in the medium to long term to achieve its mission, while the objectives
are theimmediate and ongoing actions you will take to achieve your goals.‖
So, let’s look at this again.Goals: The ―What‖ you plan to achieve
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16. Objectives: The ―How‖ you plan to achieve it. Be SMART.These first two steps are useful for
starting an NGO or non-profit anywhere, not just Ghana or Africa.
The next steps will relate specifically to Ghana.
3. Set up a Board of Directors
Now that you have outlined your vision and mission, and hopefully set some realistic goals with
SMART objectives, the nextstep in starting an NGO in Ghana is to set up a Board of Directors.
The Board of Directors serves as the governing body of your NGO. You can instate a maximum
of five individuals. Ideally,they will share your vision and mission. These individuals should be
experienced and have skills to supplement your own sothat the NGO can achieve its vision and
mission.The size and structure of the Board of Directors and its composition may change
depending on the needs and priorities ofyour NGO as time passes.
Your Board of Directors is expected to perform the following functions:
· Hire and supervise the Executive Director of your NGO
· Develop and approve budgets
· Develop policy
· Champion the cause of your NGO
· Represent your NGO to the larger community
· Mobilize funds for your NGO
They can perform any other function that you deem fit for them.
4. Draft a constitution
After setting up your board of directors, to establish an NGO in Ghana you must create a
constitution. The constitution is aset of self-imposed governing principles by the NGO and
therefore, must be consistent with the specific needs of your NGO.
The constitution stipulates specifically how your NGO will be run. It determines the structure,
roles and responsibilities ofthose involved, and organization of your NGO. It also guides your
organization’s operations and activities. It should beclearly written, deliberately structured and
be up-to-date to meet the needs of your NGO.The constitution will guide the behavior of all staff
and members of your NGO, including the behavior and actions of theBoard of Directors and the
Executive Board. Each member of your organization must have a copy of the constitution ofyour
NGO for reference purposes.Constitutions vary according to the specific needs of NGOs,
however the following list is a guide of commonly includedelements
· Official name of your NGO
· The vision/mission and goals/objectives
· Registered office
· The programme areas
· Members and qualifications and length of memberships
· Board size, responsibilities, structure
· Structure of board meetings
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17. · Committee Structure
· Executive positions and functions and procedure for dismissal
· How your NGO is funded
· How funds are applied
· Amendment procedure for the amendment of the constitution
You can appoint a constitutional committee to draft the constitution and submit it to the board of
directors and executiveboard for approval. Once approval is given, the constitution becomes the
over-arching standard by which your NGOoperates and regulates its activities, behavior and
actions of all its members, including the board of directors and theexecutive board.It is important
for the constitutional committee to do close consultation with the board of directors, the
executive boardand the broad-base membership of your NGO to reduce the risk of disapproval of
the drafted constitution.It is wise to include a review of your constitution in your annual planning
process so that you can adapt your activities to the needs of your NGO.
5. Register your NGO in Ghana
The important first four steps have been taken to profile the NGO.
1. Develop vision and mission
2. Set goals and objectives
3. Set up a Board of Directors
4. Set up a Constitution
Register the NGO in Ghana.
NGO registration laws differ from country to country. Since we’re looking at Ghana, let’s now
take a look at the legalrequirements and the registration steps for NGOs in Ghana.It’s a two-step
application process. The first step involves applying to the Registrar General’s Department. The
secondstep involves applying to the Department of Social Welfare.
1. Applying to the Registrar General’s Department
Certificate to Commence Business and Certificate of Incorporation
The first step in the NGO registration process is to obtain a Certificate to Commence Business
and Certificate ofIncorporation.Purchase the NGO registration form at the Registrar General’s
Department in Accra or at the regional post offices outsideof Accra. The current cost of the form
is nine Ghana Cedis, fifty Pesewas (9.50). Please note here that there are differentregistration
forms for registering different organization types. NGOs must pick the form marked ―The
Companies Code,1963 (Act 179), Regulations of a Private Company Limited by guarantee.‖
Fill the form
Next, fill in the required information in the appropriate spaces on the form. Be sure to take
enough time to do thiscorrectly. Most importantly, it must be typed on a type-writer, not a
computer. The trick is to make photocopies of theform and fill it out with ink, and then submit
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18. that photocopied, handwritten form with the original form to a typingprofessional to type the
details in the required spaces with a typewriter on the original, using the copy as a reference.
Typewriting services are available for a small fee at post offices. If you’re lucky enough to have
a typewriter lying around,go for it (and set up a small side business for NGO registration
applicants).
Some of the information that the registration form requires include:
a. The name of NGO
b. The objectives
c. The first members of the Executive Council or Executive Board. The number must not be less
than two persons andnot more than twenty persons
d. Particulars of Directors and Secretary, which include their names; nationalities; usual
residential addresses;business occupation
e. Name and address of Auditor. If you don’t have an Auditor, don’t worry because the Registrar
will provide you withone upon approval of your application
f. Address and P.O.Box of registered office; principal place of business
If in doubt or confused, contact the Registrar General’s Department or the National Board for
Small Scale Industries at theregional levels for assistance.
After filling the form, submit it to the Registrar General’s Department together with the
registration fees. The currentamount is 250 Ghana Cedis. They will issue the certificate to
commence business in about two weeks. It takes aboutanother week to get the certificate of
incorporation.
2. Applying to the Department of Social Welfare
NGO Status Application
After securing the certificate of incorporation from the Registrar General’s Department to
operate as a company, it’s timeto apply for NGO status from the Department of Social Welfare.
The Social Welfare Department is the regulator of NGOs in Ghana and is therefore mandated to
issue certificates ofrecognition to organizations to operate as NGOs.
The requirements for registering an organization with the Social Welfare Department for NGO
status have to be submittedto the national office of the Department in Accra and the approved
fees paid in full.
· Certificates of Incorporation and to Commence Business from the Registrar General’s
Department
· Application letter on organization’s official letter head addressed to
The Director
Department of Social Welfare
P.O.Box M. 230
Accra, Ghana
· Organization’s constitution
· NGO profile form
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19. · Social investigation report
Both the NGO profile form and social investigation report will be provided by the Social
Welfare Agency near yourorganization’s location
· A recommendation letter from the District, Municipal or Metropolitan Assembly in which your
organization is located
· Any brochure or publication of your organization. This could be your organization’s profile,
which talks about yourvision, mission, goals and objectives, your programme areas, your board
of directors, your staff and any otheruseful information about your organization.
Three copies of an endorsement letter from regional office of Departmental of Social Welfare.
The Department ofSocial Welfare has offices in all the regions of Ghana.
It takes about one month to get the NGO status certificate.
Now, you’re registered!
HOW TO WRITE A PROPOSAL FOR FUNDING A PROJECT
The Style of a Proposal
The basic writing style of a proposal is the same for any type of technical writing. For proposals
to be effective try to follow these tips:
State the purpose clearly at the beginning of the proposal.
State the background information the reader/funder/investor will need to understand your
proposal.
Use a language that everyone can understand.
Use short sentences that are clear and to the point.
Make sure that your ideas are not hidden between unnecessary words.
Make sure that the reader has all the important information needed for the final decision.
Proposals will either be accepted or rejected. Obviously, you want your proposal to be
accepted. To help make this possible, follow the six steps listed below.
1. Your proposal should define the problem and state how you plan to solve the
problem. Your proposal should assure your readers/funders that you can solve the
problem effectively. Everything in the proposal should revolve around the problem and
an effective way to solve it.
2. Do not assume that your readers/funders will believe your solution is the best. The
purpose of your proposal is to convince your readers/funders that your solution is the
best. You should not be over confident that they will approve of your solution. Do your
best to look at the proposal and solution from the reader's point of view.
3. Your proposal should be researched thoroughly. If possible, you should provide readers
with examples and facts. These items usually make your proposal more meaningful and
convincing. Try to keep your opinions out of the proposal. Opinions are not facts, and
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20. most readers will not support them. The best advice is to research other articles and
proposals on your topic. You can always include this information in your own proposal.
4. Your proposal should prove that your solution works. Make sure that your solution is
possible. You should include an analysis of your plan and possible results of your
solution. Try a pre-test of your solution to see if it works. You may need to revise your
solution before submitting your proposal.
5. Your proposal should be financially feasible. Think about the finances of the company
or person to whom you are writing the proposal. Make sure that they can afford the
solution you are proposing. Make sure to explain why your solution would be worth their
time and money.
6. Your finished proposal should look attractive. The finished proposal should be as
perfect as you can get it. This includes the overall appearance of the proposal and the
content inside the proposal.
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