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    BiD Challenge Tanzania 2007

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Business start-up

1

DAR ES SALAAM PRIME SECONDARY SCHOOL

The business is for provision of "O" and "A" level secondary education to boys and girls

This business plan relates to an educational project which deals with the provision of secondary education in a school called Dar es Salaam Prime Secondary School (DARPHIS). The plan has been prepared with the aim of enabling the School to secure investment partners so as to be able it to complete construction of buildings and infrastructure at a new larger plot to which our school will be shifted in order to be able to accommodate the growing number of students who wish to join the School. DARPHIS started operations in January 2003 on a half-acre plot in the City of Dar es Salaam which has a limited capacity for student enrolment.

The aim of the School is to contribute to the bridging of the gap which is created by the inability of the existing secondary schools in the country to provide admission for all eligible students who wish to get secondary school education. The gap is still very wide. For this reason the Government has invited private investments in the educational field

Facts

Legal status business
Formally registered
Year of establishment

2009

Sales (US$)
Two years ago:
Last year: 181,000
This year (forecast): 828,000
Year 2 (forecast): 1,198,000
Year 3 (forecast): 1,568,000
Net profit after tax (US$)
Two years ago:
Last year: 48,000
This year (forecast): 0
Year 2 (forecast): 33,000
Year 3 (forecast): 68,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 26
Year 2 (forecast): 66
Year 3 (forecast): 88

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 550,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 150,000
Total finance needed (US$) 700,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash
Loans (debt) 550,000
Share capital that you seek from investors (equity) 150,000
Other sources
Total finance needed (US$) 700,000

The Business

What is your product/service?

DARPHIS provides secondary education at both “O” and “A” levels, recruiting students who have done well in Primary School Leaving Examinations (PSLE) for “O” level courses and in the Certificate of Secondary Education Examinations (CSEE) for “A” level courses. Selection in “O” level government and non-government secondary schools is made on the basis of a pre-set national standard cut-off points of performance in National Primary School Leaving Examinations (PSLE). Selection in “A” Level education is based on prescribed performance level in the relevant “A” Level subject combinations after a student has attained appropriate credits in the CSEE.

What customer need/problem do your products/services satisfy?

DARPHIS targets middle class level income earners parents who can afford to pay relatively high chool fees for good education for their children. There are not enough such schools in Tanzania

How will you make the product/service?

To be able to provide quality secondary education, DARPHIS requires enough resources for its development. These resources include: well eqiped libraries with up to date publications (books, journals, etc.), modern teaching-learning facilities, qualified, committed and well compensated teachers and other school staff, well organized educational programmes.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The government selects and places the passing students to government schools, universities and tertiary institutions, some other students apply for either higher studies, vocational studies or employment directly or through labour exchange offices. The School comes into distribution in terms of supplying academic transcripts, school leaving certificates and letters of recommendation when requested to do so.

To whom are you selling, what is your market?

Statistics show that (i) on average a bit over 50% of class seven graduates who pass the National Primary Education Examinations get admission to secondary school each year. Hence a lot of primary school leavers are left out. (ii) secondary education demand at “O” and “A” levels will remain high for many years because (i) the population is currently growing at the rate of 2.9% per year, (ii) the rate of increase of secondary schools does not match the growth in primary school outputs, and (iii) national development which is now beginning to take off will continue to require more educated people. Therefore there will continue to be a large market for DARPHIS so long as it continues to remain attractive to middle class parents.

Describe your competitors?

DARPHIS competitors include all other secondary schools since they all wish to get the best students graduating from primary and “O” level secondary schools. At a more specific level, competitors of our school include those secondary schools which, like DARPHIS, target the middle class group of parents who can afford to pay high school fees. These schools also have an attraction from their spacious plots, spacious and modern buildings, modern teaching-learning facilities, etc.

What makes your business different/better than your competitors (competitive advantage)?

Availability of a big piece of land at the outskirts of the City, bore hole for supplying adequate water, the use modern teaching-learning facilities, recruitment and retaining of well qualified and committed teachers, attractive buildings and innovative publicity,

What makes your business, your product or service innovative?

By instituting a mechanism of monitoring and evaluating the strengths and weaknesses of our competitors in an on going basis; instituting a mechanism that will enable the School to get regular and instant feedback from the direct stakeholders (parents and students) and to ensure that the School’s initial unique characteristics are maintained and, if overtaken, new ones are invented so as to ensure that the School is always ahead through innovations.

The Entrepreneur & Management

Describe the entrepreneur & management

Owners of DARPHIS are my husband Professoe Samuel Stephen Mushi and myself the entrepreneuer. The Management Team of the School comprises the deputy managing director, headmaster, academic master, deputy headmaster, and discipline master. The team works under the overall policy supervision of the Managing Director, Professor S. S. Mushi. and under the Board of Directors. The entrepreneuer is a profetional accountant with a Degree in Accounting and a holder of Master of Business Administration. The entrepreneuer takes care of day to day running of the school.

Development

How does your business improve the local living standards (social and environmental)?

4. THE DEVELOPMENT IMPACT
4.1 The development impact of your business

Short term developmental impact
1. The school induces various small businesses around the school like retail shops, food stores etc which tend to increase incomes and reduce poverty.
2. The school creates employment. At DSM Prime High School has created employment to about 30 people.
3. As a trickle down effect, the school has made available a conducive meeting place for the surrounding community. For example women groups and other organisations have found a nice meeting place.
4. The school collaborates with other organisations within the neighbourhood to fight for the provision of essential services like roads, clean water and electricity by the relevant authorities.
Long term developmental impact
1. Education is the gate way to development. It supports development to all other sectors by generating manpower to man them and to cope with the rapid technological changes
2. To be able to support the eight elements of the Millennium Development Goals which are the eradication of poverty and hunger; the achievement of universal primary education; promotion of gender equality and to empower women; reduction of child mortality; the improvement of maternal health; to combat HIV/AIDS, malaria and other diseases; to ensure environmental sustainability and to develop a global partnership for development, education plays a great role.
3. Development is becoming more and more knowledge intensive. Generally, it is the educated people who can demand (i) accountability (ii) good rule of law (iii) good governance and (iv) who can know their rights and obligations as citizens.
4. The school project directly supports the government efforts of MKUKUTA which are (i) the growth of income and reduction of poverty; improving the quality of life and social wellbeing and governance and accountability

1 comment

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 17:40 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 17:40