General

SME Fundraising in a Pandemic

The emergence of the novel COVID-19 virus pandemic has claimed over 4.5 million lives globally and still counting. In addition to the public health impact of the COVID-19 virus, it also severely impacted many economies across the world. As a result, many business activities in many countries have been disrupted. The impact of the virus has been severe and widespread across firms, with many enterprises facing varying degrees of losses (Apedo-Amah et al., 2020).  According to Shafi et al. (2020), it is clear that firms / enterprises worldwide are experiencing the significant impact of the pandemic on their businesses. Their findings reveal that small enterprises are even more severely affected by the pandemic compared to large enterprises.  As most economies are coming out and recovering from the pandemic, many enterprises are also doing the same. One of the critical things businesses and enterprises need most in this current dispensation is capital or funding. Thus, raising funds or capital in this era is exceptionally vital for businesses across the globe.  The global GDP growth rate in 2020 fell by 3.3% as a result of the coronavirus pandemic. Similar to the developed countries, most of the enterprises in developing countries are Small and Medium-Size enterprises (SMEs). These forms of businesses or enterprises are an integral part of the global economy. They are the economic backbone of most developing countries; they are the major source of employment and contribute substantially to growth.  As indicated by Shafi et al. (2020), small enterprises are more severely affected by the negative impact of pandemic compared to large enterprises. Because they constitute a sizable proportion of the economy, this directly becomes the cause of the decline in growth of these economies.  According to Taneja et al. (2016), SME’s are kinds of enterprises that are more flexible. They tend to adapt themselves to the changing economic situations, thereby allowing them to navigate through the economic downturns. Still, there have been severe downturns. Governments all over the world are reviving their economies and businesses are following suit, also reviving their operations. As a matter of fact, the recovery of economies globally is also largely contingent on the recovery of businesses or enterprises, especially SMEs. One thing that is vital for businesses and enterprises to revive their activities is funding. Funding is the lifeline of any business, and raising funding in this period is crucial for business enterprises to expand their activities and translate into the economy’s growth. Prior to the COVID-19 crises, businesses, especially SMEs, those in developing countries, find it difficult to finance themselves through retained earnings. Also, one of the main challenges hindering the growth of many businesses in developing economies has to do with getting access to funds or credit. The World Bank Enterprise Surveys of 119 developing countries indicated that lack of access to credit is a major obstacle to enterprises, especially start-ups.  Other studies have also found access to credit to be a major challenge facing SMEs in developing countries such as Ghana over the years (Abor & Biekpe, 2007; Mensah et al., 2019; Quartey et al., 2017).  High cost of borrowing, collateral requirement, limited availability of long-term loan facilities, and limited avenues of raising credit are some of the factors responsible for the challenges of raising capital or credit.  Moreover, post the emergence of the pandemic, it even more difficult for business and enterprises to raise funds because the pandemic hit the sources as well. There still have been avenues businesses are using to raise funding in this pandemic. Bank loans or loans from savings and loan institutions are the most widely used source of finance for businesses in developing economies. Especially in Ghana, most SMEs have to rely on banks for financing. Likewise, most small businesses also look to savings and loan institutions for their working capital. The downside to these sources of funding is that they come at a high cost for businesses. Moreover, these institutions were also heavily hit by the negative impact of the pandemic, thereby constraining their ability to give out loans to companies. As a result, most of these enterprises tend to direct their attention to other alternatives to seek funds to finance their ventures.  These alternatives include government and donor grant and loan programs. Government agencies in developed and developing economies are providing funding in the form of grants to support businesses during this pandemic. For instance, in Ghana, government Agencies such as the  Microfinance and Small Loans Centre (MASLOC) and the National Board for Small-Scale Industries (NBSSI), and the Ghana Enterprises Agency (GEA) provide support to SMEs and start-ups, especially in this pandemic era.  Some of these agencies offer loans facilities, and others give grants to local enterprises. The State has initiatives and programs such as the CAP Buss Program and Ghana Covid-19 Alleviation and Revitalization of Enterprises Support (CARES), Obaatan Pa to help local enterprises and mitigate the pandemic’s impact on the economy. Obtaining funds from these sources come with some merits and demerits.  Some of the advantages are that the helping enterprise will not have to be paid back funds that are given as a grant. Even in the case of loan facilities, the cost of borrowing tends to be much lower compared to borrowing from banks. Also, no part of the enterprise is taken in return for the grant. Thus no control is taken over the business. Nonetheless, the application process can be very time-consuming with issues of red tape and lots of competition is involved in obtaining funds from these sources. These sources of funding are not adequate to meet the financial needs of these enterprises. Therefore, businesses need to explore another avenues to raise the funds they need for their operations. There are other avenues that are largely not explored by SME enterprises in developing countries, which, if explored, will inure great benefit to the enterprises.  One of such avenues that SMEs in countries like Ghana can use to raise funds is through crowdfunding. A lot of enterprises in the developed countries use this route to obtain funding. Crowdfunding platforms allow businesses to raise funds

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Vacation Networking – how to plan a good getaway with intent to network.

September has run out so fast that I’m almost certain December will be here by next week. With COVID and all the stress that it brings, I’m not sure vacation is on the minds of the people. Then again, there’s been concert after concert so I beg to differ. I’ve pondered how time away on vacation can be used as periods for building a great series of relationships – essentially networking, but intentionally. I’d like to do that myself this festive season, in the safest possible way I can. Time spent away from work does not only boost one’s general wellbeing but also enhances one’s disposition and output. The thoughts of on vacation is one fascinating experience which brings an individual peace and relaxation.  I’m experiencing peace and relaxation right now to some degree just typing about going on vacation. A 2010 travel study found that most people were happier before their trip than after returning because they were so excited to go on vacation. I’ll add that that conclusion might also be because most people don’t adequately plan a vacation trip. By its very nature, vacations are supposed to be stress-free, so we assume we should not put too much thought into them. If not properly planned, what ought to be an incredible leisurely experience turns into frustrations and avoidable friction between loved ones and within you yourself. I realised last week that my anticipated travel needs to be dealt with properly by having a professional game plan. I spoke with Gloria, my long-time travel consultant and good friend. She split everything into three stages: the anticipation of the trip, the trip itself, and the nostalgic pangs you experience for years to come. To maximise enjoyment, she says I have to cater for all three stages. Gloria Ayim has worked as a Destination Management Consultant for over 15 years. Her team was recently responsible for all the ground services arrangements for the Italian National football team during the 2020 Euro World Cup Final at Wembley.  The list of her high profile clientele include various European football clubs an including AC Milan, the family of United Colours of Benetton, Gucci, as well as being the official ground handler of Emirates Holidays from 2009 to 2019. Below whas been discussed. Below are the gems from the series of discussions we’ve had on safe, and purposeful travelling As an experienced travel professional, I have organised multiple trips for corporate institutions, executed large-scale incentive travel planning for leisure groups, families and individuals with varying budgets and interests. In light of this, many people, including Maxwell, often ask the secret to effortless vacation. Some ask about vacationing when paying for a premium service and others ask about the easiest way to enjoy the same luxurious experiences when organising a vacation yourself. The proverbial secret is that planning is paramount. Moreover, dressing for the occasion along with intentional choices to accommodate your budget, tastes and interests of the group or individuals is crucial.  Just like is common knowledge now, your network is your net worth.  A well-built network is a valuable investment. It is therefore worth considering networking along your travel journey as it is an effortless adventure applicable to our professional and social engagements. The endless opportunities can be far more exciting than awkward small talk at scheduled events. We often miss the chance to connect in our everyday lives because we are not as intentional with networking possibilities, least when we are on vacation. We have LinkedIn to thank for the ease of online networking, a massive bonus for the so-called busy folks, introverts and those unwilling to take time out to attend events.  What is the point of networking, you might ask and why on vacation?  Well, the secret is that most jobs are found and filled at a roughly 85% success rate via networking, and that’s just the tip of the iceberg! Entrepreneurs and Small Medium Enterprises (SME’s) know too well that referrals play a crucial role in their success and that these referrals come via their very network of friends, family and associates. Be ready to immerse yourself and to savour the moment when you go on vacations rather than having to make frantic last-minute decisions.  Start your journey with a realistic budget of roughly how much you want the trip to cost. Google and check TripAdvisor for activities and sightseeing options of interest to you. Should you require Visas, double-check the official government website of the place you are travelling to and how to apply for Visas before you look at flights. Depending on where you are going, check out the state of COVID-19 locally, routine vaccines for immigration and entry requirements. Destination Research In vacation planning, just as in real estate, location matters! Find out the best months to travel to your destination with the weather forecast in mind. It’s pointless travelling to Seychelles during their monsoon season expecting the perfect honeymoon. Whether travelling by road or air, factor in the logistics, costs and travel times. Accommodation Research where to stay by looking at places and attractions you wish to visit central and convenient to the main points of interest. A quality hotel in a central location is worth booking. Maxwell seems to think a comfortable hotel room is very key, and I agree with him. People are accustomed to varying levels of comfort and living standards. But I will add that most people on vacation spend over two-thirds of their time not in the hotel room. New experiences by participating in the way of living of the locals can open some wonderful doors. Transportation Where possible, make your life easier by arranging Airport to accommodation transfers in advance with a trusted supplier. It is a beautiful feeling to arrive at your chosen accommodation with ease without having to figure out where to go in case of delays and queues at immigration. Foreign currency Order the required foreign currency locally before you leave for your trip. Exchanging money

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The state of the Oil Palm Industry worldwide

Just like many other countries around the world, oil palm is aboriginal to Ghana. This is because, the country’s weather and apt soil conditions allow for its vast production. Oil palm is a local staple food for Ghanaians of all cultural backgrounds and have created job opportunities for many over the years. Aside this, it contributes immeasurably to the country’s coffers. I’ve been thinking about the oil palm industry for a few weeks now. A Turkish processing company asked that I research the possibility of them importing Palm Kernel Shells. Palm Kernel Shells or PKS are the shells fragments that are left over after palm kernel is crushed in the mill. I am aware of PKS’s availability; I just didn’t know that it is extremely sort after. The shells, not to talk of the palm kernel.  That got me thinking about the entire palm oil industry. On the international level, oil palm accounts for more than half of the global import and export trade of all vegetable oils. As a result of its frequent production around the world, oil palm can also be found in a variety of stuff including food, nonessentials, and biofuels. In the same vein, it is globally the most edible oil having exceeded all others in 2015 according to the International Institute for Sustainable Development (2019). The United States Department of Agriculture (USDA) also estimated its global production at 50 million tonnes in the crop year ending September 2011. Yet, the state of the oil palm industry throughout the world is often swept under the carpet and rarely discussed, at least from my light research conducted. Regardless, it is an undisputable fact that one of the most contentious issues on sustainable agriculture across the world has to do with the oil palm industry. Most controversial is the seeming disparity between its economic impacts and its environmental and social effects; I’m talking about issues relating to deforestation & the loss of biodiversity, social tensions & conflicts due to land acquisition. In a 2019 report by The Guardian, worldwide annual production of palm oil according to the USDA from 2018 to 2019 was nearly 81.6 million tons. This shows that a significant proportion of people use products or items containing oil palm around the world. There is an estimated three billion users of palm oil products in 150 countries. There is a global average user consumption of 8kg of palm oil annually. Oil palm grows mainly in Asia, Africa and Latin America with Indonesia and Malaysia being its principal  producers. These leading producers of oil palm, i.e. Indonesia and Malaysia, offer the international market 85% of global oil palm produce. But in spite of these high productions figures increasing revenues in these countries, there are mega environmental and social damages.  The dominant nature of the oil palm industry Oil palm cannot be spoken of without its source – the palm tree. It is general knowledge that the palm tree from which we subsequently derive the oil palm has immeasurable benefits. I believe that one way or the other we all may have shared in the numerous benefits of the palm tree. If you’re an adult Ghanaian that mostly lived in Ghana, then chances are that you cracked the shell one time and chewed on the nut. Palm trees are unquestionably among the most vital tress here on planet earth. All of its parts can be transformed into something valuable. Aside the oil palm, other items such as palm wine, woods, brooms, palm kernel, mats, among others can be gotten from the palm tree. Oh and Palm Kernel Shell! It is also an undisputable fact that oil palm is the most popular item derived from the palm tree. It is hauled out of the palm fruit and used for cooking oil, soaps, waxes, toothpastes and many more. With this knowledge, it can be noted that the dominant nature of the oil palm industry can be attributed to its universal and continual relevance.  Factors contributing to Oil Palm dominance. After what you’ve read so far, it would be safe to say that the oil palm industry has a lot to control. This dominance of the oil palm industry can be hinged on five forces or factors.  The first has to do with it replacement of less healthy fatty foods in the west.  Then, the fact that producers have reduced their prices.  Third, it has substituted more expensive oils in homes and personal care products. Fourth, because it is economical, it has been widely adopted as cooking oil in particularly developing countries across the world.  Lastly, because these countries continue to consume more fat, much of it in the form of palm oil. An ingredient in almost everything  In line with the above already discussed, oil palm is almost in everything, from foods to cosmetics and biofuels. It is also the most common cooking oil across the world because of its high heat resistance, long shelf life and, most importantly, its low price. This notion is substantiated by an estimation of the International Union for Conservation of Nature (IUCN) that palm oil can be found in about 50% of packaged items in the supermarket. This ranges from everything like detergents, to candy, to cosmetics.  Oil Palms also have higher production rates than other vegetable oils as it demands smaller amounts of energy, fertilizer and pesticides to produce. The World Wildlife Fund (WWF) agrees. WWF has stated that oil palm produces around thirty-five percent (35%) of all vegetable oil. Oil farm farmers do this on less than 10% of all land allocated to oil-producing crops. In contrast, other oils such as coconut oil or soybean oil would utilise anywhere between four (4) and ten (10) times more land. A driving force for environmental and social effects Though oil palm production contributes immensely to the creation of employment opportunities and revenues, it forms part of the factors responsible for some forms of social and environmental destruction including the following; forest and peatland burning

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