POVERTY ERADICATION THROUGH TECHNOLOGY IMPLEMENTATION
TECHNOLOGY BASED BUSINESS NETWORK
The business plan encompasses the entire sectors of a developing economy and establishing both internal and external physical and e-linkages in all transactions engaged in by prospective individuals in the economy,who will benefit from the programme.
Profits are genearated through internet based services,expert training on business and skills acquisition,commissions from export of products and imports and joint ventureships.Much of the profits will be ploughed back in the first three years.
The business exposes poor natives to national and international business opportunities,transaction and revenue,thereby,enabling them attain greater income levels and rise above poverty.
El negocio
Initial Start-Up Equipment and Capital Required
50 brand new Pentium 4 computers at $250 per one x 50-- = $12,500
Internet connectivity fee at $400.Paid only once-- = $1,400
Internet service subscription fee at $300/ month x 3 months--- = $ 900
Site/building rental for two years at $1000 per year ----------------$2000
3 month outlay for 7 workers at $150/month/worker----------------=$3,150
3 month outlay for electricity and water bills*-------------=$ 300
Furniture and labour fees on labour------------------------------------ =$ 800
1Photocopying Machineused----------------------------------= $ 500
1 Fax Machine with phone line-----------------------------------------= $ 800
Miscellaneous------------------------------------------------------------- = $ 500
Total cost-------------------------------------------------------------------= $22,850
ESTIMATED REVENUE
* Internet Cafe Operations
Surfing.revenue at $10/day/computer x 50 computers----------- = $500/day
Surfing revenue at $300/month/computer x 50 computers------ = $15,000
Surfing revenue at $ 3,600/year /computer x 50 computers----- = $180,000
sub -total-------------------------------------------------------------------= $ 180,000
* Instructor Based Operations
>Training fee for Internet usage for target of 300 students in year 1= $ 0*
>Training fee for basic computer education for target of 100 pupils = $ 1,000
>training fee for usage of software e.g. design, etc--------------------- = $2/software
>Fees for conducting private internet based research------------------ = $20/week
* Business Network Connectivity Services
.>Membership registration for online business and e-commerce programme
by participants, with already 100 confirmed willingness to participate and a target of 2,000 participants in the first year at $ 5 dollars/member---- = $ 10,000
>2 % of net profit Network Agency Fee to be paid on each export/import successfully carried out by registered members, with 30% of 2000 people success target for the first year at an estimate of $10 = 2% of net profit per 100 kg of transaction, judging by export prices and an average of 10,000 kg successful export per member x 600 members---------
-------------------------------------------------------------------------- = $ 600,000 in first year.
Grand Total of summated figures---------------------------------- = $ 791,000 in first year
>Revenue shall also accrue from authorized photocopy of legal documents and from offering fax based services.
The process detailed above is termed as Phase One of the project. In the short-medium term, the project will undergo six phases, detailed as follows:
Phase 2: With excess revenue from phase 1contract training by experts in shortlisted fields shall be embarked with a view of automatic membership of participants into the network on completion, as well as participation in the network’s programmes. A second programme in this phase is the commencement of partnerships with small scale local manufacturers and processors of products like shea butter, Dyeing chemicals, etc. As well as small scale financing of small and micro businesses, with a targeted maximum start -up capital of $2,000.Those who have undergone training through the network shall be given priority in this partnership and the company shall own 40% share in all profits, while beneficiaries own 60%.
At an estimate of 12.5% of capital as profit per month, revenue shall accrue for an initial target of 30 beneficiaries as $250 x 30 x 12=$90,000 in the 1st year. With reinvestment of turnover, the 2nd stage gives $225,000 while the third stage gives $ 336,000 .This is for only 30 people, and should the figure double, then revenue doubles as well.
Phase 3: The company shall undergo expansion by establishing similar business network units in other cities. With a target of 1 business unit opened per year,total revenue on Internet based operations alone shall be $ 1,080,000$1.08 million in just three years, while net profits from agency share in agric exports in the same time frame, with an addition of thirty new participants each year will also be $1.08 million($336,000x3)
Phase 4 : The company shall initiate joint ventureship operations between local businessmen and foreign partners, with a target of creating wider capital base for locals ,while securing foreign export markets. The company shall own shares in each successful Joint Venture Partnership * and profits shall accrue to it in hard currency, rapidly capitalizing the network.
Phase 5: In this phase, the company shall acquire interests and shares in other companies and establishments in Ghana, who are operating in similar fields, so as to effectively work with colleagues and sell the vision of eradicating poverty through profits. Also, profitable stocks of other companies in all other fields shall be acquired through capital market operations. This is to consolidate on operating capital in the future.
Phase 6 : Here, the company having gained some financial might, will attempt to set up similar business network units in neighbouring West African countries, then subsequently in their parts of Africa and then outside of Africa. The company shall also acquire stocks and shares in foreign companies operating in similar fields so as to effectively have a say in influencing decision makers to eradicate poverty by using profit making as a tool.
Stocks and shares in other companies which are profitable shall also be acquired.
With a potential of phases 1,2 and 3 alone generating up to US$2 million in only 3 years and potential to generate much more, this venture, started with a seed capital of $22,850 is by no means a charitable one, rather a typical example of using little seed capital to finance thousands of lives out of poverty. Exactly what is needed in this era.
The products and services shall be marketed through the both ordinary and specialised means.The ordinary means shall include through the mass media like radio,TV,newspapers,etc in form of paid advert,while the specialised means will include methods like going into forms of agreements with various trade unions,youth organisations,NGOs,corporate bodies and community based associations to enlist their members /wards at some form of discount in terms of accessing the service/products.Also,schools and educational /technical instituions shall also be included,as they can introduce this concept to their students as a form of activity that will drive them toward excellence and self employment.Points can be awarded to people in associations who enlist.Potential competitors exist only in segregated form,but there is no such group or organisation presently in Ghana which offers a whollistic package in both It/telecom provision and at the same time,International Business facilities and greater opportunities to acquire more skills and for latter joint ventureships and share ownership.We are/shall be the first.My partners,P-CED of United kingdom,with Jeff mowatt as reference person, come in a technical/advisory form.As experts in the field of IT/telecom,there input will be through intellectual guidance.As for other funding sources,this is quite difficult,as bulk business capital acquisition is very difficult in this part of the world.However,I hope to supply 10% of the required capital,and then raise the rest by offering share ownership to prospective investors.
Desarrollo
The business shall heavily impact on various sectors in the following ways:- * Direct employment shall be gained by the recruitment of staff to run the affairs of the business and also through the the direct participation of people in all programmes listed by the business,who will in turn become self-employed too,or able to find employment having gained needed skills.An increase in direct employment leads to an increase in direct income.Indirect employment shall be generated in many ways that include the employment of other hands by the successfully trained people under the programme,after they commence there own businesses,and also by the recruitment of more hands to handle the expansionary stages of the business,especially in the area of joint venturships and acquistions,etc,which will have an indirect impact on the local economy and subsequently on the stock market when shares are acquired and when the company is listed on the exchange.Increase in income will lead to increase in the quality of living and provide more people with funds to acquire more school education,business education and entreprises.With this,an increase in knowledge shall be gained,while human capital and skill development shall soar upwards.Nt less than $2 million will be generated in the first three years and an estimate of $16 million in ten years.