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 EXECUTIVE SUMMARY

FUND24 serves as the financial core of Ghana’s 24H+ Economy Programme, intended to mobilise and coordinate national and external financing for all associated sub-programmes. Its overarching goal is to create a transparent, diversified, and sustainable development-finance system that reduces dependence on short-term borrowing and aligns fiscal resources with long-term national priorities.

At the centre of FUND24 lies the proposed National Development Financing Mechanism (NDFM) — a framework designed to unify institutions such as the Development Bank Ghana (DBG), the Ghana Infrastructure Investment Fund (GIIF), and the Ghana EXIM Bank under one coordinated financing strategy. Yet, as of late 2025, the NDFM remains largely conceptual: institutional fragmentation, weak fiscal space, and limited regulatory alignment delay its full operationalisation.

The government’s revenue-mobilisation intentions—anchored in the Medium-Term Revenue Strategy (MTRS 2024–2027) and the Sustainable Financing Framework (2021)—focus on five pillars: tax reform and digitalisation, natural-resource revenue stabilisation, public-asset optimisation, green-bond issuance, and diaspora-investment mobilisation. While ambitious, these measures face persistent structural constraints, notably a narrow tax base, enforcement weaknesses, and exposure to commodity-price volatility.

FUND24’s success will depend on the effective integration of existing financial institutions, transparent fund allocation, and consistent political commitment. Current trends suggest that full operational functionality may not be achieved before 2027, meaning the broader 24H+ Programme will remain financially fragmented in the near term. The experience of the Ghana–China Business Summit (June 2025)—where several MoUs are still awaiting implementation—illustrates how long it typically takes for policy agreements to mature into tangible investment.

A robust FUND24 will require a legal and institutional consolidation process, creation of a central development-finance account, and strong digital oversight through real-time monitoring systems. If these reforms are successfully enacted between 2026 and 2028, FUND24 could evolve into Ghana’s first integrated national financing mechanism. If not, the 24H+ Economy risks remaining a conceptual framework without sufficient fiscal traction.

FUND24 — Financing the 24H+ Economy

1. Core Purpose

FUND24 is conceived as the financial pillar of Ghana’s 24H+ Economy Programme — the sub-programme responsible for mobilising, coordinating, and sustaining financial resources across all 24H+ initiatives. It aims to create a stable, transparent, and diversified financial foundation for Ghana’s transition toward a productive, export-driven, and continuously operating economy.

1. Historical and Policy Background

Ghana’s development finance landscape has long been fragmented, marked by dependence on external borrowing, commodity export revenues, and donor inflows.
Institutions such as the Ghana Infrastructure Investment Fund (GIIF), the Ghana EXIM Bank, and the Development Bank Ghana (DBG) were established to expand access to long-term capital, but have largely operated in isolation, with overlapping mandates and uncoordinated funding pipelines.

FUND24 intends to reverse this pattern by establishing a National Development Financing Mechanism (NDFM) — a unified structure to align financial flows, harmonise institutional mandates, and coordinate both public and private investment in line with the 24H+ strategy.
This effort fits within Ghana’s IMF-supported fiscal reform agenda and the Medium-Term Revenue Strategy (MTRS 2024–2027), both of which emphasise domestic resource mobilisation, fiscal discipline, and sustainable debt management.

1. Strategic Objectives

• Build a diversified, sustainable financing structure combining domestic, concessional, and private capital sources.
• Reduce reliance on short-term borrowing and strengthen access to affordable long-term finance.
• Institutionalise fiscal transparency and accountability through digital monitoring systems.
• Attract private, diaspora, and international investment into infrastructure, industry, and innovation.
• Promote financial inclusion and SME access to credit via risk-sharing and guarantee mechanisms.
• Initial efforts under the IMF programme to improve revenue predictability and transparency.

But in practice, no unified operational allocation system exists yet. Financing decisions remain sectoral and project-based, without central coordination under FUND24.

 

1. The National Development Financing Mechanism (NDFM): Policy vs. Reality

The NDFM is meant to act as the central coordination hub of Ghana’s development finance ecosystem — linking the Ministry of Finance, GIIF, DBG, EXIM Bank, and other agencies.
As of late 2025, however, it remains conceptually defined but not yet institutionally realised.

Key institutional realities:

1. Development Bank Ghana (DBG) – Disbursed over GH₵600 million to SMEs and agriculture in 2024, but governance issues (board dissolution in 2025) disrupted confidence.
2. GIIF – Secured US$75 million from the AfDB to expand infrastructure financing; effective but limited in scale.
3. Integrated National Financing Framework (INFF) – Designed with UNDP to align financing flows with SDGs; analytical in scope, not yet operational.
4. PPP Programme – Estimated US$37 billion infrastructure gap; progress constrained by investor risk perceptions and slow project structuring.

Assessment:
The NDFM exists in partial form through these institutions, but FUND24’s envisioned unified mechanism has yet to emerge. Institutional integration remains the largest single challenge.

1. Fund Mobilisation and Allocation Framework

The Fund Mobilisation and Allocation Framework under FUND24 seeks to consolidate revenues from the national budget, natural resource proceeds, development banks, and private investors into a single structured pool for strategic allocation.

So far, Ghana has established:

• The INFF and MTRS 2024–2027 as conceptual bases.
• The Sustainable Financing Framework (2021) and Green Finance Taxonomy (2024) for ESG and environmental alignment.
• Initial efforts under the IMF programme to improve revenue predictability and transparency.

But in practice, no unified operational allocation system exists yet. Financing decisions remain sectoral and project-based, without central coordination under FUND24.

 

5A. Revenue Mobilisation Intentions and Analysis

The effectiveness of FUND24 depends fundamentally on Ghana’s ability to generate predictable, sustainable, and diversified domestic revenues to feed into its financing mechanisms.
The government’s revenue mobilisation intentions are embedded in the Medium-Term Revenue Strategy (MTRS 2024–2027), the Sustainable Financing Framework (2021), and the emerging Integrated National Financing Framework (INFF).

Key Revenue Mobilisation Pillars

1. Domestic Tax Reforms

• Expansion of the VAT and e-VAT systemto improve compliance and close loopholes.
• Broadening of the tax base by integrating informal sector actors through digital ID and mobile-money records.
• Enhanced analytics within the Ghana Revenue Authority (GRA) to curb leakages.

1. Natural Resource Revenues and Royalties

• Improved transparency in gold, oil, and lithiumroyalties through digital tracking.
• A proposed stabilisation bufferwithin FUND24 to shield public investments from commodity price shocks.
• Possible earmarking of part of the gold-for-reserves proceedsfor long-term infrastructure funding.

1. Public Asset Optimisation

• Conversion of dormant state assets into revenue streams via public–private leasing and joint ventures.
• Monetisation of government-owned real estate and digital assets under GIIF.

1. Green and Thematic Financing Instruments

• Issuance of Green, Social, and Sustainability Bonds (GSSBs)under the Sustainable Financing Framework.
• Use of climate finance and carbon creditsto support renewable energy and agriculture projects within GROW24 and BUILD24.

1. Diaspora and Domestic Savings Mobilisation

• Launch of Diaspora Bondsto attract long-term investment from Ghanaians abroad.
• Incentivising pension and insurance funds to channel savings into development projects.

Analytical Assessment

Ghana’s revenue mobilisation agenda is ambitious but uneven in implementation potential.
Structural weaknesses — such as a narrow tax base, limited compliance, and fiscal deficits — constrain the achievable pace. Digitalisation could raise non-oil domestic revenues by 2–3% of GDP by 2027 if consistently enforced, yet GRA capacity and legal enforcement remain weak.

Reliance on natural resource proceeds introduces volatility. Without automatic stabilisation rules and disciplined fund management, windfall revenues could again be lost to short-term fiscal consumption.
Hence, success will depend on institutional coordination, transparent rules, and the depoliticisation of revenue flows.
The government’s ability to demonstrate visible returns on new taxes and bonds will be decisive in building public and investor confidence.

6. Implementation Strategy

• Lead institutions: Ministry of Finance, Bank of Ghana, GIIF, DBG, EXIM Bank.
• Oversight: Proposed 24H+ Financial Steering Committee to approve projects and monitor resource flows.
• Phases:

• Phase I (2025–2026):Institutional consolidation, fiscal mapping, donor coordination.
• Phase II (2027–2028):Expansion through PPPs, diaspora bonds, and blended finance.
• Phase III (2029–2030):Full national integration of financing flows under FUND24.

 

7. Expected Outcomes

• Predictable, transparent, and sustainable financing for all 24H+ sub-programmes.
• Enhanced fiscal discipline and public accountability.
• Greater liquidity for productive sectors and infrastructure.
• Improved investor and donor confidence in Ghana’s development finance ecosystem.

8. Persistent Challenges

• Tight fiscal space and debt-service pressures.
• Overlapping mandates among financial institutions.
• Weak digital integration and information-sharing.
• Inconsistent accountability mechanisms.
• Bureaucratic inertia and political transitions affecting continuity.

9. Integration within the 24H+ Framework

FUND24 is the connective tissue of the 24H+ Programme.
Without it, the other sub-programmes — BUILD24, MAKE24, GROW24, CONNECT24, ASPIRE24, and GO24 — remain financially isolated.
A functioning FUND24 is therefore a precondition for an integrated, scalable, and measurable 24H+ Economy.

10. Implementation Outlook (2025–2030)

Given current fiscal and institutional conditions, the operational realisation of FUND24’s core frameworks — the NDFM and the Fund Mobilisation & Allocation Framework — will likely take 1–2 years.

• Institutional coordination among MoF, GIIF, DBG, EXIM Bank, and NDPC will require at least 12–18 months.
• Fiscal constraints under the IMF programme restrict expansion until 2026.
• Legal and digital systems for FUND24 are still being drafted.
• Political transitions could delay further into 2027.

Comparative example – Ghana–China Business Summit (June 2025):
That summit produced multiple MoUs on industrial parks, energy, and agriculture. Yet as of late 2025, no major investment has materialised beyond feasibility studies — showing that in Ghana’s institutional setting, even high-level MoUs often need 18–24 months before they translate into real projects.
FUND24 faces the same structural test: transforming frameworks into operational investments requires time, coherence, and legal authority.

Analytical summary: 

The groundwork for FUN D24 is being laid, but its financial machinery remains under construction. Until FUND24 becomes operati  onal — realistically not before 2027 — the 24H+ Programme will remain fragmented and under-financed. Its success will test Ghana’s capacity to turn fiscal ambition into institutional delivery.

11. Reform and Poli cy Recommendations (2026–2028)

To convert FUND24 from a  policy design into a functioning national financing mechanism, Ghana must implement targeted reforms across six key areas:

1. Legal and Institutiona l Consolidation

1. Enact a FUND24 Act or Executive Instrument to coordinate all development-finance entities.
2. Clarify roles within the   NDFM to avoid duplication.
3. Empower the NDPC to  enforce financial alignment with national priorities.

1. Fiscal and Financial Int egration

1. Create a Consolidated  Development Finance Account (CDFA) in the Ministry of Finance.
2. Link FUND24 to the MTRS for stable inflows.
3. Introduce a unified financial-tracking system for transparency.

1. Domestic Resource Mobilisation and Private Capital Attraction

1. Operationalise blended-finance instruments such as PPP co-financing and credit guarantees.
2. Issue Diaspora and Green Bonds tied to sustainability frameworks.
3. Engage pension and insurance funds to unlock long-term domestic capital.

1. Digital Oversight and Transparency

1. Build a FUND24 Digital Monitoring Dashboard integrated with GIFMIS.
2. Enable real-time disbursement and performance tracking.
3. Publish annual FUND24 reports to ensure accountability.

1. Capacity Building and Institutional Discipline

1. Apply performance-based budgeting to all 24H+ projects.
2. Strengthen analytical and risk-management capacity in financial agencies.
3. Enforce merit-based leadership across institutions.

1. Political and Policy Stability

1. Anchor FUND24 as a non-partisan mechanism with cross-party oversight.
2. Ensure continuity across electoral cycles via parliamentary monitoring.
3. Institutionalise public–private dialogue forums for stakeholder stability.

Analytical Conclusion

FUND24’s long-term success will depend not on new institutions but on integrating and disciplining existing ones.
The years 2026–2028 will be decisive. If Ghana achieves legal consolidation, fiscal integration, and transparent oversight, FUND24 can evolve from a conceptual framework into a powerful national financing engine.
If reforms lag — as illustrated by the slow conversion of the Ghana–China MoUs into actual investment — the 24H+ Economy will remain financially fragmented and dependent on short-term improvisation.

(This article was written with the assistance of Artificial Intelligence – AI.)

 

The 24H+ Economy: Ghana’s Vision of Transformation Meets the Fiscal Wall

When the government of Ghana unveiled the 24H+ Economy concept, it was presented as nothing less than a new development paradigm. The idea — that Ghana’s economy should function seamlessly day and night, with productive activities distributed across all regions — sought to reposition the country as a logistics and industrial hub for West Africa.

In principle, the framework is compelling. It aligns agriculture (through GROW24), manufacturing (MAKE24), infrastructure (BUILD24), technology and innovation (ASPIRE24), financing (FUND24), and several sectoral initiatives under one integrated umbrella. It promises jobs, export diversification, and balanced regional growth — a formula any economy would envy.

But good economics does not automatically translate into feasible policy. And as the programme moves from concept to execution, the gap between vision and fiscal reality is becoming increasingly visible.

A grand plan in a constrained economy

The 24H+ Economy arrives at a time when Ghana’s public finances are at their most fragile in decades. Following the 2022–2023 debt crisis and the subsequent IMF Extended Credit Facility, the government remains in a tight fiscal corner. Domestic arrears persist, interest payments absorb over half of total revenue, and capital expenditure is chronically underfunded.

Against this background, the 24H+ initiative faces a simple but uncomfortable question: how can a government already struggling to meet basic obligations finance such an expansive programme?

The answer — for now — lies in FUND24, a proposed financing mechanism meant to blend public, private, and external sources. On paper, FUND24 will pool capital from development partners, the private sector, and sovereign resources, using the state as a coordinator rather than a spender. In practice, however, it remains a shell without proven capacity.

The risk is evident: Ghana could replicate the pattern that led to its debt distress in the first place — borrowing for transformation while neglecting fiscal consolidation. Unless the 24H+ framework includes strict safeguards against new debt accumulation, it may inadvertently deepen the country’s financial vulnerability.

The regional imbalance problem

Equally significant is the issue of regional equity. Although the 24H+ Economy is marketed as a nationwide strategy, early signs point to a spatially uneven rollout. Infrastructure investments, pilot industrial clusters, and logistics corridors have been concentrated around Greater Accra, Ashanti, and Central Regions, while northern and coastal peripheries remain largely at the planning stage.

This is not a new story. For decades, Ghana’s economic geography has revolved around a southern growth corridor — from Tema through Kumasi — with the rest of the country lagging behind. The 24H+ framework risks reinforcing this imbalance if its interventions are not deliberately weighted toward disadvantaged regions.

For example, while the Volta Basin agricultural transformation (a component of GROW24) has strong potential to boost northern productivity, financing delays and limited road connectivity have slowed progress. Meanwhile, urban projects under BUILD24 — such as the 24-hour logistics zones and industrial enclaves — are already advancing where the infrastructure is strongest.

The result could be a two-speed transformation: an accelerated southern economy and a periphery left behind, precisely the opposite of what the policy intends.

Institutional inertia and governance fatigue

Beyond finance and geography lies the deeper structural question of institutional capacity. The 24H+ Economy requires seamless coordination between ministries, metropolitan assemblies, and regional administrations — a level of inter-agency discipline Ghana’s bureaucracy rarely achieves.

Project implementation units are under-resourced, and accountability frameworks are still vague. The National Development Planning Commission (NDPC), which should play a central monitoring role, lacks the enforcement authority to ensure compliance across sectors. Meanwhile, overlapping mandates among ministries risk producing bureaucratic turf wars rather than synergy.

Moreover, the politicisation of the initiative has blurred its administrative boundaries. The 24H+ Economy has evolved from a technocratic policy instrument into a political narrative — a flagship slogan meant to symbolise economic renewal. As election cycles draw near, the temptation to treat 24H+ as a campaign identity rather than a national development pact will grow stronger.

To be fair, this is not a problem unique to the current administration. Successive governments, regardless of party, have shown a tendency to overpromise transformation while underestimating the fiscal and institutional discipline required to achieve it. There is, in short, bipartisan continuity in the mistakes.

The financing illusion

Even if FUND24 were fully operational, the deeper question remains: what is the private sector’s appetite for large-scale participation in a programme heavily dependent on state facilitation? Ghana’s private sector is already grappling with high interest rates, limited access to long-term finance, and the aftermath of the domestic debt exchange. Expecting it to anchor a major transformation effort without significant risk mitigation may be unrealistic.

Development partners, too, are cautious. With IMF oversight ongoing, new concessional financing must fit within strict debt-sustainability parameters. That leaves little room for the sort of expansive capital spending the 24H+ vision implies.

Unless the government identifies alternative revenue channels, improves tax efficiency, and enforces expenditure control, the financial backbone of 24H+ will remain aspirational.

Why the idea still matters

Yet, dismissing the 24H+ Economy entirely would be shortsighted. The vision of a round-the-clock economy — one that integrates production, logistics, and digital innovation — is strategically sound. It acknowledges that Ghana’s next growth frontier lies not in more resource extraction but in higher productivity across time, space, and sectors.

If properly implemented, GROW24 could stabilise food security; MAKE24 could rebuild local industry; BUILD24 could modernise infrastructure; and ASPIRE24 could foster a culture of innovation. The ambition is right. The weakness lies in the misalignment between ambition and capacity.

What Ghana needs now is a scaled, fiscally realistic version of the 24H+ Economy — one that prioritises catalytic interventions with measurable impact rather than a grand, all-embracing plan. Transparency, regional targeting, and merit-based implementation must take precedence over symbolism.

A call for pragmatic realism

The 24H+ Economy embodies both the promise and the peril of Ghana’s policymaking tradition: bold ideas constrained by financial and institutional reality. The government deserves credit for thinking beyond electoral cycles, yet it must now prove that such thinking can survive them.

Transforming the vision into reality requires radical fiscal honesty, regional fairness, and institutional discipline — virtues that have too often been sacrificed to political convenience. Without them, the 24H+ Economy risks becoming another impressive policy architecture that the state simply cannot afford to build.

(This article was prepared with the assistance of Artificial Intelligence – AI.)

ON SEVERAL FINANCIAL PLATFORMS IT IS REPORTED RECENTLY THAT MORE AND MORE COUNTRIES ;EAVE THE US-DOLLAR WHEN TRADING WITH OTHER COUNTRIES AND CHOOSE THE CHINESE RENMINBI OR THE SWISS FRANC INSTEAD.

THE REASON FOR THAT IS MAINLY THE TARIFFS POLICY OF THE TRUMPADMINISTRATION AND THE GLOBAL ECONOMIC UNCERTAINTY WHICH ORIGINATES FROM THE US-AMERICAN ECONOMIC POLICIES.

FURTHERMORE, THE TRUMP ADMINISTRATION USES TARIFFS TO PUT POLITICAL PRESSURE ON OTHER COUNTRIES. EXAMPLES FOR THAT ARE INDIA, WHICH WAS PUNISHED BY HIGHER TARIFFS FOR BUYING OIL FROM RUSSIA, BRAZIL, FOR TAKING BOLSONARO TO COURT, THE FORMER PRESIDENT OF BRAZIL AND TRUMP ASSOCIATE, AND QUITE RECENTLY MEXICO WHICH WAS FORCED TO RAISE TARIFFS FOR COUNTRIES IT DOES NOT HAVE TRADE AGREEMENTS WITH. THE TRUMP ADMINISTRATION REPORTEDLY FORCED THE MEXICAN GOVERNMENT TO ALIGN ITS TARIFFS POLICIES WITH THAT OF THE UNITED STATES; IF NOT, MEXICO WILL BE PUNISHED ECONOMICALLY.

NO WONDER THEN THAT MORE AND MORE COUNTRIES ARE TRYING TO AVOID THE US-DOLLAR, AND ARE LOOKING FOR MORE RELIABLE AND STEADFAST CURRENCIES TO TRADE WITH. THEY CAN’T CHOOSE THE EURO, AS THIS CURRENCY IS ECONOMICALLY AND POLITICALLY TOO CONNECTED TO THE US-DOLLAR. TO PROVE THAT, WE ONLY NEED TO LOOK AT THE OUTCOME OF THE US-EU TARIFF NEGOTIATIONS, AT THE END OF WHICH = ACCORDING TO THE MAJORIT OF BUSINESS EXECUTIVES IN EUROPR – THE EU HAD EEN RIPPED OFF.

THE SWISS FRANC IS AN ALTERNATIVE, BECAUSE SINCE DECADES, IT IS A STRONG CURRENCY WITH NOT MUCH FLUCTUATION; THEREFORE, TRADE PARTNERS ARE SURE WHICH CONDITIONS THEY WILL HAVE WHEN THEY USE THE SWISS FRANC AS ATRADING CURREBCY.

THE CHINESE RENMINBI, ON THE OTHER HAND, BENEFITS FROM THE FACT THAT THERE IS A STRONG AND RELIABLE ECONOMY BEHIND IT WITH A RELIABLE TRADING PARTNER – CHINA. THE CHINESE GOVERMENT DOES NOT MIND THE KIND OF GOVERNMENT IT IS TRADING WITH, AS LONG AS BOTH COUNTRIES BENEFIT FROM THE ARRANGEMENTS. ALSO, THE CHINESE ECONOMY – DESPITE CHALLENGES AND ATTEMPTS OF MAINLY THE U.S.A. TO DAMAGE IT – IS ROBUST AND FUTURE-ORIENTED. WHAT CHINA HAS ACHIEVED IN THE LAST 80 YEARS IS REMARKABLE, AND A LOT OF ALSO AFRICAN COUNTRIES SEEK THE COOPERATION WITH CHINA TO BENEFIT FROM THE CHINA’S EXPERIENCE.

THE GHANAIAN GOVERNMENTS FROM BOTH SIDES OF THE POLITICAL SPECTRUM HAVE ALSO REALISED IT; THE NPP GOVERMENT BY JOINING THE BELT-AND-ROAD INITIATIVE IN 2018, AND THE CURRENT NDC GOVERNMENT BY ORGANISING THE GHANA-CHINA BUSINESS SUMMIT IN JUNE 2025.

NOW THE TIME HAS COME FOR GHANA AND OTHER AFRICAN COUNTRIES TO INTENSIFY THE ECONOMICAL AND POLITICAL CONTACTS WITH CHIMA, AND TO JOIN THE GROWING NUMBER OF COUNTRIES THAT DISTANCE THEMSEELVES FROM AN ECONOMICALLY AND POLITTICALLY CHAOTTIC UNITED STATES OF AMERICA.

A FEEDBACK FOR AND DISCUSSON CONCERING THIS ARTICLE IS VERY MUCH WELCOME.

SINCE YESTERDAY, 7TH OF AUGUST 2025, THE U.S.A. HAVE IMPOSED A 15% TARIFF ON ALL GOODS IMPORTED FROM GHANA. WITH THAQT, GHANA IS PART OF A GROUP OF 15 AFRICAN NATIONS ON WHICH A TARIFF OF 15%z IS IMPLEMENTED,

GHANA HAS A TRADE SURPLUS WITH THE U.S.A., AND THAT MIGHT BE THE REASON WHY THE TARIFF WAS PUT ON GHANA. THE TRADE SURPLUS AMOUNTS TO 19 MILLION US-DOLLARS IN FAVOUR OF GHANA. IN MAY 2025, GHANA EXPORTED GOODS WORTH 108 MILLION US-DOLLARS TO THE U.S.A, WGILE THE COUNTRY IMPORTED GOODS WORTH 88.6 MILLION US-DOLLARS FROM THE U.S.A.

GHANA MAINLY EXPORTS COCOA BEANS, COCOA PASTE AND COCOA POWDER TO THE U.S.A. IT IS INTERESTING TO NOTE THAT THE EXPORT OF COCOA BEANS IS 8 TIMES AS HIGH AS THE EXPORT OF COCOA PASTE AND COCOA POWDER TOGETHER, BUT THIS IS THE SUBJEDT FOR A DIFFERENT ARTICLE (MARCH 2025; SOURCE: BING CO-PILOT).

AS THE U.S.A. TARIFFS ON COTE D’IVOIRE – ANOTHER BIG COCOA PRODUCER ARE ALSO 15%, THE TARIFFS WOULDN’T MAKE MUCH DIFFERENCE IN THE PRICE FOR COCOA AND COCOA PRODUCTS FROM BOTH COUNTRIES. AND AS THE U.S.A WILL HARDLY BE ABLE TO GROW COCOA IN THEIR COUNTRY, THE OTHER ARGUMENT OF THE TRUMP ADMINISTRATION THAT PRDUCTION OF GOODS SHOULD BE BROUGHT BACK TO THE COUNTRY DOES ALSO NOT APPLY TO COCOA.

THEREFORE, THE IMPLEMENTATION OF TARIFFS ON COUNTRIES – AND ESPECIALLY AFRICAN COUNTRIES – IS A GENERAL PROBLEM. TRUMP’S ADMINISTRATION TRIES TO “CONQUER” COUNTRIES THROUGH THE IMPLEMENTATION OF TARIFFS. WHAT OTHER COUNTRIES TRY TO ACHIEVE BY MILI TARY FORCE, TRUMP’S ADMINISTRATION TRIES THE ECONOMY WAY.  GOOD EXAMPLES FOR THAT ARE BRAZIL, WHERE TRUMP TRIES TO PUNISH THE CURRENT ADMINISTRATION FOR TAKING THE FORMER PRESIDENT TO COURT, AND INDIA FOR BUYING OIL FROM RUSSIA. FURTHERMORE, BOTH COUNTRIES ARE PUNISHED FOR BEING MEMBERS OF THE BRICS ORGANISATION.

AS TRUMP’S POLICIES ARE UNPREDICTABLE. THE ONLY THING WE CAN SAY IS THAT HE ALWAYS CHANGES HIS POLICIES WHEN HE THINKS THAT IT SERVES HIS OWN INTERESTS BETTER. THEREFORE, THE U.S.A. APPEAR UNRELIABLE AS A TRADING PARTNER, ESPECIALLY FOR AFRICAN COUNTRIES.

ON THE OTHER HAND, CHINA APPEARS TO BE AN ALTERNATIVE AS A TRADING PARTNER. GHANA HAS ALREADY JOINED THE BELT-AND-ROAD INIATIVE IN 2018, AND UNTIL NOW, THE COOPERATION OF GHANA WITH CHINA IS ONLY OF ADVANTAGE FOR GHANATHE COPERATIN WITH CHINA IS FOR OTHER AFRICAN COUNTRIES. 

ALSO, A MEMBERSHIP OR AT LEAST AN OBSERVER STATUS IN THE BRICS ORGANISATION SHOULD NOT BE LEFT OUT OF SIGHT. THIS ORGANISATION OFFERS FINANCIAL AND TRADE ADVANTAGES WHICH ARE ESPECIALLY NECESSARY FOR AFRICAN COUNTRIES. ALREADY SOME AFRICAN COUNTRIES LIKE ETHIOPIA HAVE JOINED THE BRICS ORGANISATIN. EVEN THE AFRICA UNION AS AN ORGANISATION SHOULD TAKE A COOPERATION WITH THE BRICS COUNTRIES INTO CONSIDERATION.

LAST BUT NOT LEAST, AFRICA INCLUDED GHANA SHOULD TAKE ADVANTAGE OF THEIR OWN “INVENTION”, THE AFRICA CONTINENTAL FREE TRADE AREA. THE DEVELOPMENT OF THE INTER-AFRICAN TRAFE WOULD GIVE THE 54 COUNTRIES A GOOD CHANCE TO BECOME AT LEAST MORE INDEPENDENT FROM EXTERNAL UNPREDICTABILITIES WHICH THE U.S.A. HAVE TO OFFER.

BASICS OF BUSINESS MANAGEMENT

LESSON 1

INTRODUCTION; THE FIVE COMPONENTS OF BUSINESS MANAGEMENT

 

MORE A FOREWORD: AS USUAL WITH MY COURSES, THIS ONE ALSO DOES NOT GO DEEP INTO THEORY OF BUSINESS MANAGEMENT, ALTHOUGH THEORY PRINCIPALLY PLAYS AN IMPORTANT PART OF BUSINESS MANAGEMENT. THIS COURSE SHOULD GIVE NEW WOULD-BE ENTREPRENEURS SOME HINTS WHAT TO DO IN MANAGING THEIR BUSINESS, AND WHAT THEY JAVE TO EXPECT.

BEFORE WE START GETTING INTO DETAILS, WE NEED TO KNOW WHAT BUSINESS MANAGEMENT IS.

MANAGEMENT OR MANAGING IS

the process of coordinating and overseeing the activities of an organization to achieve its goals

(COURTESY OF BING)

WHERE BUSINESS IS ANY ECONOMIC ACTIVITY.

WE SEE THAT BUSINESS MANAGEMENT IS NOT A ONE-TIME APPEARANCE, BUT A PROCESS THAT LASTS AS LONG AS THE ECONOMIC ACTIVITY EXISTS.

THE PROCESS “BUSINESS MANAGEMENT” IS IN ITSELF DIVIDED INTO FIVE COMPONENTS WHICH THEMSELVES ARE PROCESSES. THESE COMPONENTS ARE:

— PLANNING,

— ORGANISING,

— STAFFING,

— LEADING, AND

— CONTROLLING.

THESE FIVE COMPONENTS DO NOT EXIST SEPARATED FROM EACH OTHER, BUT THEY ARE USUALLY OVERLAPPING. THAT MEANS THAT ONE OF THE COMPONENTS COMES INTO ACTION WHILE OTHERS ARE ALREADY ACTIVE. FOR EXAMPLE, YOU MIGHT BE PLANNING A NEW PART OF YOUR BUSINESS WHILE YOU ARE CONTROLLING THE EXISTING ONES. OR YOU MIGHT BE STAFFING A NEW PART OF YOUR BUSINESS WHILE YOU ARE LEADING THE EXISTING STAFF OF YOUR BUSINESS.

TO BE A SUCCESSFUL MANAGER, YOU MUST FOLLOW THESE FIVE COMPONENTS OF BUSINESS MANAGEMENT IN THEORY AND PRACTICE. IN THE NEXT LESSONS, WE WILL LOOK AT EACH COMPONENT MORE THOROUGHLY.

 

 

AND NOW TO THE QUESTIONS:

• DEFINE IN YOUR OWN WORDS WHAT MANAGEMENT IS.
• WHAT CAN BE MANAGED?
• HOW CAN BUSINESS BE DEFINED?
• WHAT ARE THE FIVE COMPONENTS OF BUSINESS MANAGEMENT?
• GIVE TWO EXAMPLES HOW YWO COMPONENTS OF BUSINESS MANAGEMENT CAN OVERLAP.

THE NEXT LESSON WILL BE PUBLISHED BEGINNING OF NEXT WEEK.

BASIC COURSE IN BUSINESS MANAGEMENT

LESSON 2

PLANNING

GOOD AND EXACT PLANNING IS ESSENTIAL FOR EVERY SUCCESSFUL BUSINESS. WITHOUT THOROUGH PLANNING, YOUR BUSINESS IS SURELY ABOUT TO FAIL. BUT LET US FIRST OF ALL LOOK HOW BUSINESS PLANNING IS DEFINED:

Planning is the primary function of management that involves formulating a future course of action for accomplishing a specific purpose. Planning enables managers to decide what task to do, how to do the task, when to do the task and by whom the task has to be done.

AND TO ACHIEVE A PLSNNING WHICH BENEFITS YOUR BUSINESS, YOU WILL NEED A BUSINESS PLAN.

A business plan is a roadmap for your business. It outlines your goals, strategies, and how you plan to achieve them. It’s a living document that you can update as your business grows and changes.

(COURTESY wisebusinessplans.com)

BUT NOBODY EXPECTS YOU TO WRITE A BUSINESS PLAN JUST LIKE THAT. YOU WILL NEED GUIDANCE HOW TO WRITE SUCH A BUSINESS PLAN. AND THERE ARE LOTS OF TEMPLATES TO BE FOUND ON THE INTERNET. IN MY OPINION, ONE OF THE BEST TEMPLATES IS THE PRINCE’S TRUST BUSINESS PLAN PACK. YOU CAN DOWNLOAD IT HERE:

BUSINESS_PLAN_2015.pdf (ctfassets.net)

WHEN YOU WRITE SUCH A BUSINESS PLAN – NO MATTER WHERE YOU TAKE THE TEMPLATE FROM – YOU MUST BE AWARE THAT SUCH A BUSINESS PLAN IS NOT A ONE-TIME EVENT. AS MUCH AS YOUR BUSINESS EVOLVES OVER TIME, THE BUSINESS PLAN HAS TO DO THE SAME. THAT MEANS THAT YOU HAVE TO REVIEW YOUR BUSINESS PLAN REGULARLY TO SEE WHETHER IT STILL REFLECTS REALITY, OR WHETHER YOU REALISED CHANGES FOR YOUR BUSINESS THAT NEED A CHANGE IN YOUR BUSINESS PLAN.

YOU SEE THAT THE BUSINESS PLAN’S PURPOSE IS NOT ONLY FOR EXTERNAL USE – THAT MEANS IF YOU WANT TO APPLY FOR A LOAN, OR YOU ARE LOOKNG FOR AN INVESTOR – BUT IT IS ALSO IMPORTANT FOR YOU PERSONALLY.

 

QUESTIONS:

• WHAT IS THE MAIN FUNCTION OF PLANNING?
• WHAT IS THE BEST WAY TO ACHIEVE THE FUNCTION OF PLANNING?
• WHAT IS THE PURPOSE OF A BUSINESS PLAN?
• WHAT IS ONE OF THE BEST TEMPLATES FOR A BUSINESS PLAN?
• WHY DO YOU HAVE TO REVIEW YOUR BUSINESS PLAN REGULARLY?

BASICS OF BUSINESS MANAGEMENT

LESSON 3

ORGANISING

 

BEFORE WE GO INTO THE DETAILS WHAT ROLE ORGANISING PLAYS IN BUSINESS MANAGEMENT, WE WILL FIRST OF ALL LOOK AT THE DEFINITION:

Organizing in management is a pivotal function that produces the harmonious collaboration of human efforts and resources, aligning them purposefully to achieve set objectives. It entails structuring, grouping, and coordinating resources – be it finances, materials, machinery, or manpower – to work collectively toward a particular goal.

(COURTESY OF BING)

ACTION WITHOUT PLANNING IS FATAL, BUT PLANNING WITHOUT ACTION IS FUTILE, AN OLD BUSINESS MANAGEMENT SAYING TELLS US. THAT IS BECAUSE EVEN IF YOU HAVE THE NICEST PLAN FOR YOUR BUSINESS, IT WON’T BE WORTH ANYTHING IF YOU WON’T PUT YOUR PLAN INTO REALITY. AND THE BEGINNING OF THIS REALITY IS TO ORGANISE YOUR UPCOMING BUSINESS. YOU HAVE A GOAL WHICH – ACCORDING TO YOUR PLAN – YOU WANT TO ACHIEVE, AND NOW YOU MUST START TO MAKE IT THE REALITY YOU WANT IT TO BE.

AS WE SEE FROM THE DEFINITION, ORGANISING YOUR BUSINESS MEANS THAT YOU GATHER ALL RESOURCES YOU HAVE AND MAKE THEM WORK FOR YOUR BUSINESS EFFICIENTLY. TO ACHIEVE THIS, YOU HAVE TO LAY OUT AN ORGANISATIONAL STRUCTURE; THIS ORGANISATIONAL STRUCTURE CAN ALREADY BE PART OF THE BUSINESS PLAN WHICH WE DISCUSSED IN AN EARLIER LESSON. THERE ARE MANY EXAMPLES FOR ORGANISATIONAL STRUCTURES ON THE INTERNET (FOR EXAMPLE 7 Organizational Structure Types (With Examples) – Forbes Advisor ), JUST CHECK IT OUT.

LET ME GIVE YOU AN EXAMPLE FOR ORGANISING YOUR BUSINESS:

LET’S ASSUME YOU WANT TO OPEN A SHOP SELLING BABY ARTICLES. YOU HAVE A SHOP IN A VERY GOOD AREA (REMEMBER: LOCATION, LOCATION, LOCATION IS ONE OF THE MOST IMPORTANT ISSUES RUNNING A SHOP). YOU HAVE ENOUGH CAPITAL TO PURCHASE GOODS TO SELL, AND YOU HAVE ONE EMPLOYEE (IT MIGHT BE ADVISABLE TO HAVE A FEMALE EMPLOYEE, AS YOU WANT TO SELL BABY ARTICLES; MOST OF THOSE ARTICLES MIGHT BE BOUGHT BY WOMEN, AND THEY MIGHT TRUST A FEMALE EMPLOYEE MORE THAN A MALE; YOUR BUSINESS IS NO SPACE FOR GENDER EXPERIMENTS).

NOW YOU MUST FIND THE BEST SUPPLIER FOR THE GOODS YOU WANT TO SELL. GET OFFERS FROM VARIOUS SUPPLIERS, AND COMPARE THE OFFERS. REMEMBER THAT THE CHEAPEST OFFER IS NOT ALWAYS THE BEST. THERE ARE MANY OTHER MATTERS  THAT PLAY A ROLE WHEN CHOOSING YOUR SUPPLIER, E.G. DELIVERY TIME FOR GOODS SUPPLIED, REPLACEMENT OF SPOILT OR OUTDATED GOODS, ETC,  IT MIGHT ALSO BE THAT YOU NEED MORE THAN ONE SUPPLIER, DEPENDING ON THE RANGE OF ITEMS YOU INTEND TO SELL. IN ONE SENTENCE: BE VERY CAREFUL AND THOROUGHFUL WHEN CHOOSING YOUR SUPPLIER(S).

MAKE ALSO SURE THAT YOUR INVENTORY IS UP-TO-DATE, AND THAT THERE ARE ALWAYS ENOUGH GOODS IN YOUR SHOP. FIND OUT HOW MUCH TIME IT TAKES FOR YOUR SUPPLIER TO DELIVER NEW ITEMS, AND ORDER THESE NEW ITEMS IN TIME.

THE SAME ACCOUNTS GENERALLY FOR YOUR EMPLOYEE. WELL, NOW THAT YOU FOUND A RELIABLE AND LOYAL EMPLOYEE (WE DISCUSS THE MATTER OF STAFFING IN A LATER LESSON), YOU MUST DISCUSS THE WORKING HOURS WITH HER. THE WORKING HOURS FOR YOUR EMPLOYEE MIGHT NOT BE IDENTICAL WITH THE OPENING HOURS OF THE SHOP, ESPECIALLY IF YOU INTEND TO BE PRESENT IN YOUR SHOP YOURSELF, IF YOU HAVE MONEY ENOUGH TO EMPLOY MORE THAN ONE STAFF, YOU MIGHT EVEN OPT FOR  SHIFTS. YOU MUST GIVE EVERY EMPLOYEE A JOB DESCRIPTION WHICH DEFINES EXACTLY THE ROLE THE EMPLOYEE WILL PLAY IN YOUR BUSINESS.

ORGANISING ACCOUNTING IS VERY CRUCIAL FOR YOUR BUSINESS. WITHOUT A PROPER ACCOUNTING, YOU MIGHT FACE A LOSS IN YOUR BUSINESS SOONER THAN LATER, AND THEN A BANKRUPTCY OF YOUR BUSINESS MIGHT NOT BE FAR AWAY.

WHEN YOU LOOK AT THE DEFINITION OF ORGANISING IN MANAGEMENT, YOU MIGHT THINK THAT IT IS VERY COMPLICATED. WELL, IT CAN BE COMPLICATED, BUT WE CAN TAKE INTO CONSIDERATION THAT YOUR BUSINESS IS A RATHER SMALL ONE, AND ORGANISING IT IS NOT TOO COMPLEX. IT WON’T TAKE MUCH OF YOU TO ARRANGE THE COOPERATION BETWEEN THE VARIOUS PARTS OF YOUR BUSINESS. THAT IN MIND, YOU MUST BY ALL MEANS HAVE A CLEAR VIEW THAT ALL THE COMPONENTS OF YOUR BUSINESS ARE DOING THEIR CONTRIBUTION FOR THE SUCCESS OF YOUR BUSINESS. HABING A SMALL OR MICRO BUSINESS DOES NOT MEAN THAT IT SHOULD BE ORGANISED BADLY, OR EVEN NOT AT ALL ORGANISED.

ALSO KEEP IN MIND THAT ORGANISING YOUR BUSINESS IS NOT ISOLATED FROM THE OTHER PARTS OF BUSINESS MANAGEMENT. AS WE HAVE DEALT WITH PLANNING BEFORE, THERE IS ALWAYS A CONNECTION BETWEEN ORGANISING AND PLANNING. IF YOU SEE ANY MISHAPS IN THE COOPERATION OF THE VARIOUS PARTS OF YOUR BUSINESS, YOU MUST ALWAYS PLAN HOW TO MAKE IT BETTER.

 

AND NOW TO THE QUESTIONS:

• WHAT IS THE MAIN PURPOSE OF ORGANISING IN MANAGEMENT?
• WHY IS IT NECESSARY TO HAVE AN ORGANISATIONAL STRUCTURE FOR YOUR BUSINESS?
• GIVE EXAMPLES FOR ORGANISATIONAL STRUCTURES!
• WHY IS ACCOUNTING IMPORTANT IN ORGANISING IN MANAGEMENT?
• HOW ARE PLANNING AND ORGANISING CONNECTED IN BUSINESS MANAGEMENT?

BASICS OF BUSINESS MANAGEMENT

APPENDIX TO LESSON 3: ACCOUNTING

 

ACCOUNTING PLAYS AN IMPORTANT ROLE IN ORGANISING YOUR BUSINESS. WITHOUT A PROPER ACCOUNTING, YOUR BUSINESS MIGHT COLLAPSE WITHIN THE FIRST YEAR OF EXISTENCE.

WELL, I KNOW THAT MOST PEOPLE BECOME AFRAID WHEN THEY HEAR THE WORD “ACCOUNTING”. THEY ASSOCIATE THE ITEM WITH DOUBLE-ENTRY ACCOUNTING, CALCULATING DEPRECIATION, AND OTHER HORROR IMAGINATIONS.

BUT FOR YOU AS OWNER OF A MICRO OR SMALL BUSINESS, THAT DOES NOT NEED TO BE THE CASE, AT LEAST NOT FOR THE BEGINNING. WHEN YOUR BUSINESS GROWS, YOU MIGHT NEED TO OCCUPY YOURSELF WITH ISSUES LIKE SPROGRAMMES ON THE INTERNET. OR YOU CAN USE SOME GUIDES OF HOW TO USE MICROSOFT EXCEL FOR ACCOUNTING PRACTCES.

BUT LET US GET BACK TO THE START OF OUR ACCOUNTING. FOR THE BEGINNING, IT IS SURELY ENOUGH TO USE A SIMPLE INCOME/EXPENSES METHOD TO SEE AT THE END OF THE MONTH WHETHER YOUR BUSINESS MADE A PROFIT AT THE END OF THE MONTH, OR A LOSS.

YOU MAKE A LIST WHICH UOU SEPARATE INTO THREE PARTS UP DOWN. ONE SMALLER PART ON THE LEFT IS RESERVED FOR THE DATE, THE NEXT PART WILL SHOW THE INCOME (KEEP IN MIND THAT YOUT INITIAL WORKING CAPITAL IS YOUR FIRST INCOME). THE INCOME MUST CONTAIN THE AMOUNT YOU RECEIVED, AND FOR WHAT YOU RECEIVED IT THE LAST COLUMN IS FOR THE EXPENSES AND MUST CONTAIN THE AMOUNT OF EXPENSES AND FOR WHAT. FOLLOWING IS A SAMPLE:

 

DATE	INCOME (IN GHC)	EXPENSES ( GHC)I
1ST JANUARY 2025	10,000 INITIAL WORKING CAPITAL	2,500 RENT
2ND JANUARY 2025		5,000 PURCHASE OF GOODS FOR SHOP (SPECIFY)
3RD JANUARY 2025	1,575 SALES OF GOODS ON THAT DAY (SPECIFY; GHC 500 PROFIT)
	AND SO ON	AND SO OM
TOTAL JANUARY 2025	TOTAL INCOME AT THE END OF JANUARY	TOTAL EXPENSES AT THE END OF JANUARY
TOTAL JANUARY	INCOME MINUS EXPENSES

 

IF YOU USE THIS SCHEME FOR THE ACCOUNTING, IT WILL SURELY BE SUFFICIENT FR YUR MICRO BUSINESS.

 

BASICS OF BUSINESS MANAGEMENT

LESSON 4

STAFFING

 

COMPARED WITH THE OTHER FOUR COMPONENTS OF BUSINESS MANAGEMENT, STAFFING MIGHT NOT BE EASIER TO ACCOMPLISH, BUT IT IS AT LEAST EASIER TO UNDERSTAND. HERE IS FIRST OF ALL THE DEFINITION:

An effective staffing process helps you find and retain strong candidates who are a good fit for your organization. More specifically, you can keep refining your staffing. Successful programs establish a continuous system of evaluating and developing your relationship with employees and selecting for qualities that are most effective. Ideally, the process of staffing can help you find great employees and maintain strong relationships with them.

DEFINITION IS COURTESY OF INDEED

OF COURSE, THE BASIC ASSUMPTION FOR EFFECTIVE STAFFING IS THAT YOU WILL NOT RUN YOUR BUSINESS ALONE, BUT THAT YOU TAKE ONE OR MORE EMPLOYEES.

THE FIRST STEP TO FIND THE SUITABLE EMPLOYEE FOR YOUR BUSINESS IS TO INTER VIEW CANDIDATES. YOU MIGHT FIND THESE CANDIDATES AMONG YOUR FRIENDS AND ACQUAINTANCIES, OR YOU MIGHT PUT AN ADVERTISEMENT IN LOCAL AND/ OR SOCIAL MEDIA.

WHEN ONE OR MORE CANDIDATES HAVE CONTACTED YOU FOR THE JOB, WE WILL GET TO THE INTERVIEWS. BUT BEFORE YOU START THE INTERVIEWS, IT IS ADVISABLE TO DEVELOP A SO-CALLED “QUESTIONNAIRE”. A QUESTIONNAIRE IS A LIST OF QUESTIONS WHICH YOU CONSIDER IMPORTANT TO FIND THE RIGHT EMPLOYEEYOU’RE YOUR BUSINESS. BASIC QUESTIONS SHOULD BE THOSE FOR AGE AND EDUCATION LEVEL. FOR SOME JOBS, IT MIGHT ALSO BE NECESSARY TO KNOW WHETHER THE CANDIDATE – NO MATTER WHETHER FEMALE OR MALE – IS MARRIED AND HAS CHILDREN, OR – ANOTHER ADRA OF IMPORTANCE – HOW THE CANDIDATE’S KNOWLEDGE OF THE ENGLISH LANGUAGE IS. OTHER QUESTIONS MOSTLY DEPEND ON THE KIND OF JOB YOU WANT TO HAVE AN EMPLOYEE FOR.

BUT MOST IMPORTANTLY – AS YOU CAN ALSO SEE FROM THE DEFINITION – YOU MUST BE ABLE TO ESTABLISH A POSITIVE RELATIONSHIP WITH YOUR FUTURE EMPLOYEE. BE CAREFUL: DON”T MISUNDERSTAND A POSITIVE RELATIONSHIP AS LEADING TO AN INTIMATE RELATIONSHIP WITH YOUR FUTURE EMPLOYEE! AN INTIMATE RELATIONSHIP COULD LEAD TO AN INCORRECT JUDGMENT OF THE EMPLOYEE’S HANDLING OF YOUR BUSINESS.

SO, WHAT IS A POSITIVE RELATIONSHIP THEN? THERE ARE FOUR PARTS THAT CONSTITUTE A POSITIVE RELATIONDHIP. THESE ARE:

— MUTUAL RESPECT,

— TRUST,

— COOPERATION, AND

— UNDERSTANDING.

IN PRINCIPLE, THESE FOUR SHOULD CONSTITUTE THE BASIC OF EVERY RELATIONSHIPL UNFORTUNATELY, THEY DO NOT. MOREOVER, THEY ARE EXTREMELY IMPORTANT IN AN EMPLOYER-EMPLOYEE RELATIONSHIP,THE EMPLOYER MUST SHOW RESPECT TO HIS EMPLOYEE (AND VICE VERSA), AND ONLY WITH A TRUSTFUL COOPERATION BETWEEN THE TWO THE BISINESS WILL BE SUCCESSFUL FOE THE MUTUAL BENEFIT OF THE TWO.

AND NOW TO THE QUESTIONS:

• WHEN – ACCORDING TO THE DEFINITION – WILL A STAFFING PROCESS BE EFFECTIVE?
• IN WHAT WAYS CAN YOU LOOK FOR CANDIDATES FOR A JOB IN YOUR BUSINESS?
• WHAT SHOULD YOU PREPARE BEFORE THE INTERVIEWS WITH THE CANDIDATES?
• WHAT ARE THE BASIC QUESTIONS IN EVERY JOB INTERVIEW?
• WHAT ARE THE FOUR COMPONENTS OF A POSITIVE RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE?

THE NEXT LESSON WILL FOLLOW SOON – WATCH OUT!

BASICS OF BUSINESS MANAGEMENT

LESSON 5

LEADING

 

 

BEFORE WE GO INTO DETAILS OF THIS LESSON, HERE FIRST OF ALL THE DEFINITION OF LEADERSHIP IN BUSINESS MANAGEMENT:

Leading in management is typically taking control of a team to provide direction and make decisions that help achieve the goals they have set. It can involve motivating, inspiring and empowering those around you to follow your lead. Leaders can be essential for the good of all members within an organisation that they manage.

AS YOU SEE FROM THIS DEFINITION, IT COVERS THE LEADERSHIP IN REGARD OF A TEAM. BUT I AM OF THE OPINION THAT SOMETIMES YOU ALSO NEED SOME KIND OF LEADERSHIP WHEN YOU WORK ALONE IN YOUR BUSINESS. THEREFORE, I WILL FIRST CONCENTRATE ON LEADING WITHIN YOUR BUSINESS WHEN YOU WORK ALONE, AND THEN SWITCH TO THE QUESTION OF LEADERSHIP IN A TEAM (KEEP IN MIMD THAT EVEN IF YOU ONLY HAVE ONE EMPLOYEE, YOU BOTH FORM A TEAM).

WHEN YOU HAVE A MICRO OR SMALL BUSINESS – AND YOU WORK ALONE AND DON’T HAVE ANYONE WITH WHOM YOU CAN SHAREIT WHEN A PROBLEM OCCURS – YOU HAVE TO “LEAD” YOURSELF OUT OF THE PROBLEM. YOU MUST LOOK AT WHAT YOU WANT TO ACHIEVE – THAT’S WHY IT IS GOOD IF YOU HAVE A WRITTEN BUSINESS PLAN -, AND LOOK AT THE PROBLEM WHICH YOU ARE FACING. REFLECT OVER THE PROBLEM – WHICH IS MORE OR LESS DISCUSSING THE PROBLEM WITH ONESELF – AND THEREBY LEAD YOURSELF OUT OF THE ISSUE.

TO FOLLOW THIS PROCEDURE, YOU MUST DEVELOP SOME KIND OF LEADERSHIP. LET’S HAVE A LOOK AT THE DEFINITION AGAIN: LEADING IN MANAGEMENT IS TAKING CONTROL OF A TEAM – THE TEAM IN THIS CASE IS YOU – TO PROVIDE DIRECTION – SOLVING THE PROBLEM – TO MAKE A DECISION FOR THE SUCCESS OF THE BUSINESS, YOU CAN SEE THAT EVEN IF YOU ARE WORKING ALONE, YOU MUST PRACTICE SOME KIND OF LEADERSHIP FOR THE SUCCESS OF YOUR BUSINESS.

OF COURSE, THAT ACCOUNTS EVEN MORE IF YOU REALLY HAVE PEOPLE WORKING FOR YOU. YOU HAVE A REAL TEAM, AND YOU WANT TO ACHIEVE SOMETHING TOGETHER WITH THEM.IUTO BE ABLE TO LEAD YOUR TEAM, YOU MUST BUILD UP A RELATIONSHIUFFFFP OF TRUST. YOU HAVE SURELY CHOSEN PEOPLE IN THE “STAFFING” SEGMENT OF WHOM YOU THINK THAT THEY WILL BE ABLE TO ASSIST YOU IN ACHIEVING YOUR GOALS. NOW YOU MUST  BE CONVINCING THEM IN DETAILS –GENERALLY YOU ALREADY HAVE TO DO IT IN “STAFFING” – WHAT THEY HAVE TO DO WITHIN THEIR WORKFRAME TO ACHIEVE SUCCESS IN THE BUSINESS. YOU MUST BE ABLE TO TELL THEM CONVINCINGLY THAT WHENEVER THEY HAVE A QUESTION, YOU WILL ALWAYS BE THERE FOR THEM TO ANSWER AND TO ASSIST THEM IN FINDING THE CORRECT SOLUTION.

AT THE SAME TIME, YOU SHOULD ALSO NOT FALL INTO A BLAMING MOOD WHEN THEY MADE A MISTAKE. EXPLAIN WHAT THEY DID WRONG, AND HOW THEY CAN DO IT BETTER OR CORRECTLY. BUT ALSO, IF THEY DO THE SAME MISTAKE SEVERAL TIME,  AND THEY WON’T ACCEPT YOUR CORRECTION ATTEMPTS, YOU SHOULD NOT HESITATE TO DRAW THE CONSEQUENCES AND RELEASE THEM FROM THEIR DUTIES. KEEP IN MIND THAT A TEAM IS ONLY AS STRONG AS ITS WEAKEST LINK, AND IN ORDER TOSTRENGTHEN YOUR TEAM, YOU MUST BE CONSEQUENT.

THIS IS ESPECIALLY DIFFICULT IF YOUR EMPLOYEE IS A RELATIVE OR A GOOD FRIEND. BUT IF YOU WANT TO BE SUCCESSFU L IN YOUR BUSINESS, YOU HAVE TO BE CONSEQUENT IN ALL ASPECTS.

BUT LEADING IS NOT ONLY LOOKING FOR MISTAKES AND CORRECTING THEM. A BIG PART OF LEADING YOUR TEAM IS MOTIVATING THEM, REWARDING THEM FOR WHAT THEY HAVE DONE RIGHT. THAT WOULD GIVE THE TEAM AND EACH MEMBER THE FEELING THAT THEY ARE NEEDED FOR THE SUCCESS OF THE BUSINESS.

THIS REWARDING OR MOTIVATING CAN BE IN INCENTIVES – MOSTLY FINANCIAL -, BUT CAN ALSO BE IN GIVING THE EMPLOYEE(S) MORE RESPONSIBILITY.

LOOKING AT THE END EFFECT, A GOD AND RESPONSIBLE LEADERSHIP IS ABSOLUTE ESSENTIAL FOR A GOOD BUSINESS.

 

 

 

QUESTIONS:

• WHAT ARE THE ESSENTIALS OF A GOOD LEADERSHIP IN MANAGEMENT?

 

• HOW ARE LEADERSHIP QUALITIES NECESSARY WHEN YOU ARE WORKING ALONE IN YOUR BUSINESS?

 

 

• WHAT DO YU HAVE TO DO IF AN EMPLOYEE MAKES A MISTAKE?

 

• WHAT ARE THE DIFFICULTIES IN YOUR LEADERSHIP IF THE EMPLOYEE IS A RELATIVE OR A GOOD FRIEND?

 

 

• GIVE A BRIEF SUMMARY OF THE LESSON!