General

“A people will grow when their elders start planting trees whose shade they will never enjoy” some old saying goes something like that. The word “Sustainability” could refer to the ability of an organization, a business, a person, a people, to continue over a longer period. It’s highly relevant in the context of setting strategic policies within the immediate setting, choosing operational priorities and ensuring a balance between economic, social, and environmental aspects of the entity. The word “Sustainability” could also mean not to compromise on social and environmental aspects to make a profit and financial fortune alone/only. This can be done by when the entity includes ”Strategic Balance” as a priority in the decision-making process. “Strategic Balance” in this sense means to take care of economic, social, and environmental aspects of the everyday activities of the entity.  This article will briefly touch on different sustainability models, an African perspective and investors’ influence in setting positive sustainability development choices. These choices should lie in areas of highest resource utilization with enhanced ability to recycle/reuse the products, or process before sale. These choices should also be about rethinking how to bring a social and environmentally friendly change. And one of the options can be to gain this strategic competence via a circular economy. Circular economy – this economy is about using resources to add continuous value. Product/waste is not thrown away but used repeatedly to protect the environment. Sustainability models  The universal concept of sustainability is linked with the three aspects of human evolution. These aspects are: Economic sustainability Economic sustainability refers to the effective utilization of financial resources. It’s about profitable operations. Without earning profits, a business, an organization, a country, is not expected to survive in the long-term. So our institutions need to remain profitable. For instance, phones are not recycled in the environment when we are done with them which leads to economic loss. This loss is globally estimated to be $4.5 Trillion. (weforum, n.d.) As per the report from United Nations Populations funds, there are over 200 million people between the age of 15 and 24 years in Africa. Further, demographic trends suggest that this strength is expected to be double in the next 25 years (weforum, n.d.). This demographic strength of the continent can be used to earn profit in terms of strong, competent workers and strategic competence to earn a financial fortune. Actually, the youth can be an exceptional resource if certain things are controlled and directed in that specific direction. In addition, Africa’s largely entrepreneurial youth are expected to benefit from the African Continent Free Trade Agreement, a revolutionary step to promote trade and bring financial prosperity to the region as this agreement comes with the potential to unlock a market of 1.3 billion people. All these show that the African region is of higher expectations in terms of product innovation and market creation. (UNDP, n.d.) Social sustainability Implementation of Corporate Social Responsibility (CSR) has become one of the core strategic competencies worldwide. There is increasing awareness of social sustainability among entrepreneurs and business policymakers. It is important to note that social consideration in the business has massive potential to impact its stakeholder relations. For instance, operational aspects of a business’ performance include but are not limited to fair labour practices, health and safety of the staff, work-life balance, quality, empowerment, volunteerism, community engagement, philanthropy, human rights and living standards. From an African perspective, the region’s culture is diverse and vibrant with a rich heritage and increasing economy that increasingly supports the culture of business and trade. However, overall productivity is limited because of the region’s enduring poverty and social inequality. This leads to the underutilization of natural resources like agricultural land and resource degradation (ISPI, n.d.). Hence, a strict approach to bring social reforms and connect society is expected to bring massive profits and prosperity for the region.  Environmental/ecological sustainability As per reports from United Nations Environment Protection Agency, if 10,000 tonnes of goods are put in the land, six jobs are created, recycling creates 36 jobs, and reuse is expected to create 296 jobs. Hence, steps taken to recycle a massive quantity of goods can be a welcoming aspect from an economic and environmental point of view. (weforum, n.d.) Suppose goods are reused in the economy in the form of recycling. In that case, such an economy is termed a circular economy, and it’s expected to protect organic life on the planet. There has been an increasing awareness in terms of protecting the environment with green efforts. For instance, recently, giant organizations and companies like UNICEF and giant telecommunication companies have called for innovative ideas to bring green innovation in the region. (Forbes, n.d.) Interconnection of “Sustainability” to “Development” and “Model” Today, we live in a dynamic world where consumers better understand the products and services. So, consumers have a clear preference for selecting business partners that take care of the environment. A recent survey conducted by Harvard Business Review reveals that 65% of consumers want to purchase products from companies that take account of social and ecological sustainability (HBR, n.d.).  This is the reason that companies have been advertising their sustainability efforts to their target customers. So, if the company is well known to comply with social and environmental aspects, more and more customers are expected to do business with them. Hence, it’s highly logical to expect enhanced market share, customer loyalty, and higher turnover from organisations that adopt sustainable business policies and models. (HBR, n.d.) Business Model and Sustainability perspective The business model (BM) is a formal description of organizational activities that are used to generate and deliver value for the stakeholders. BM is considered an essential document used in pitching your business idea to raise finance. However, it’s important to note that the business model is not complete without comprehensive aspects of sustainability. It’s because investors prefer to invest in an idea committed to society’s social and environmental aspects.  Further studies have proven that environmental and social values in one’s business model have massive potential to add value and enhance

Obtaining a second source of income all starts with an idea, one of the most potent forms of power that exists. I learnt from a TED-Ed that “power is the ability to have others do what you would have them do”. Is that not what all businesspeople want: the ability to make others buy what they want them to buy? How do we achieve that? How do we get the power to make people purchase our services and products? Getting the business community to take actions in your favour can happen in a variety of ways. Here are some examples in line with the 6 forms of power that exists: What you need, is a strong idea. I asked my team at Maxwell Investments Group (MIG) what their version of a strong business idea for passive income is. Dr Abigail T. D. Anyomi, President of MIG, wrote on our group platform, and I quote: “As the days go by, it becomes increasingly clear that having one source of income is highly insufficient to survive in today’s economic climate. Regular 9 to 5 jobs are simply not going to cut it if you want to live a comfortable life, not to even mention a luxurious one. The second source of income is not a second job. Passive income, which is when your money is basically working for you without you necessarily having to move a muscle, is the way to go to achieve financial freedom. And the more streams you have, the more money you earn and the more freedom you will have to live your dreams, be it a vacation to the Caribbean or a weekend away at a luxury hotel.” So, how do you get started on having another income stream? What avenues can we explore? The aim is to fully maximise and utilise the resources available to you. Here are some pointers to consider when determining what should qualify as a second source of income.  The best side-hustles almost always becomes the new 9 to 5, only that you start working 24hours on it because you begin to enjoy yourself. That is why it is important to ideate properly. It is important to sift through the many ideas that flood in and execute the one that has the highest chance of success, to choose a strong business idea. Rya G. Kuewor, the CEO of The RIO Corporation, also wrote on our MIG group platform, and I quote:  “The answer isn’t predominantly straightforward, unfortunately. More often than not, an idea, especially a business or a technological one, for instance, is only as good as its patronisers.  We can colour the grey areas by understanding that Facebook’s (or Meta’s) idea of connecting people would never have worked if the people had no desires of being connected to each other, or understanding that Adinkra Pie would not have been successful if Ghanaians had immovable resolutions about eating breakfast they hadn’t made themselves.  Knowing this, we can surmise that a good idea needs to be well-timed, culture or context-appropriate, simple enough that it does not feel like a chore, and appealing enough that it isn’t boring. We can use this formula and practice having more good ideas”. So now we need a strong business idea. What makes a business idea “strong”? The strength of the business idea is a prime factor in attracting business investors. It’s about pitching to them how strong your business model is and how you can multiply their investment. In this article, I’ll discuss different aspects of a business idea that make it attractive for investors. These aspects include but are not limited to market size, market share, unique selling proposition, background compatibility, innovation, adequate strategic position, scalability, strong problem statement, your strategic capability, understanding of market dynamics, product position, etc.  Let’s understand the details of these aspects. Market size and market share The market size refers to the total size of transactions taking place for the product in your target market. It’s simple science; if your market size of the product is larger, you will be able to earn higher revenue and vice versa.  On the other hand, market share refers to the proportion owned by different companies in the market. Sometimes market share is fragmented, which means different companies are selling the same product as you intend to. Likewise, if market share is concentrated, it means few companies are the main players in the market. Investors prefer to invest in a market with a larger market size. It’s because of the fact that there is more potential to earn revenue/profit within larger markets. Sometimes, operational feasibility is attached to market size. For instance, if the market size is larger, the business will be able to achieve economies of scale and lead to higher profitability. Economies of scale – It’s a concept that if you produce in bulk, you will produce at a lower price. That’s because the fixed cost is split among a higher number of units, and volume discount can be claimed on the purchase of material, labour, etc. An alternate strategy can be to look for a growing market. In fact, it’s comparatively easier to capture market share as new customers are buying new products. Unique selling proposition – (USP) A unique selling proposition means why customers should buy your product. Does your product offer something different from your competitor? Investors are always looking to invest in products that offer something different. In fact, USP is one of the favourite areas of any investor, and they are always looking to invest in a business that offers something unique to the customers. Background compatibility Investors like to check your background compatibility with the business idea. It helps them in understanding your capability to run the business. For instance, if you have a degree in medical science and your business idea is about medicines, investors are more likely to invest in your business idea. It’s because of the trust in your competence and ability to run the business

The human was born free and has been free to do business to make a living. However, during this process, society expects compliance with certain standards and regulations to ensure the smooth flow of usual activities and socio-economic norms. The society also expects a certain kickback from the people because of their existence and usage of social space. Taxation is one of the most prominent examples of these kickbacks. Understanding Tax Basics Taxation is one of the social and legal obligations on people executing a profit-making process. However, the money raised through taxes is aimed to be used for public utility services and has been an effective tool to manage the cultural and socio-economic aspects of our community. Taxes are compulsory. Usually, when money leaves your pocket, you are exchanging it for a specific good or service. However, taxes are unrequited. This means that they are not paid in exchange for a specific public service or sale or purchase of public property. Nonetheless, sometimes there is some kind of connection between the taxes you pay and a particular service you enjoy from the government. For instance, paying road toll levies to help maintain the road network or paying taxes on motor fuel to help finance the construction of new roads or maintenance of old roads. The Government aims to collect taxes to enhance the socio-cultural and economic environment. This revenue is used to finance public welfare works like schools, colleges, hospitals, construction & infrastructure works, security & defence, and other projects to support life in our region. Countries around the globe have developed different regulations to collect taxes from individuals and corporations. Applicable Rules and regulations change with the change of country. For instance, tax-related laws in Ghana are different from applicable tax laws in the United States in terms of compliance and practical application. However, tax is generally calculated on profit, salary, capital gain, interest, dividend, etc. The taxpayer is required to take out a certain percentage from their earnings and submit it to the Government. The amount of tax one pays generally increases with an increase in earnings. There are different types of taxes: income tax, payroll tax, corporate tax, sales tax, property tax, tariff, estate tax, etc. These taxes can largely be described as being either direct or indirect. Direct taxes are charged on incomes and profits and paid by an individual or organisation directly to the Government. Its payment can’t be shifted to another person and must be borne by the individual or organisation, e.g. income tax and corporate tax. It’s difficult for the government to collect this unless it’s at the source. Indirect taxes are levied on products and services and can be transferred to the end-user or consumer. The Government charges these on manufacturers and suppliers for the import, sale and purchase of goods who in turn pass on this cost to the final consumer. An example of this is the Value Added Tax (VAT) and tariffs. The taxation system varies from nation to nation, and individuals/corporations need to thoroughly understand the taxation system and ensure they comply. From an African perspective, tax is progressive, which means that your tax liability increases with your increase of income. African Tax History The roots of taxation in Africa can be traced back to the Colonial days. Time has witnessed different rulers taking the power of tribes and introducing their own governance and tax collection system. One of the interesting instances from the pages of history is the introduction of the “Hut Tax” that Britain introduced in Africa, derived from its payment on a “per hut basis”. The hut tax was payable in the form of labour, grains, money or stock, and the tax collected was used to manage operational and strategic matters of an empire. Similarly, a poll tax was introduced by Britain in Africa somewhere in the 19th century where a fixed sum per head was charged from each citizen; it was also called “Head Tax”. This was charged usually on able-bodied men without recourse to their income levels. The purpose of this tax collection kept changing from time to time and included combinations of the following. The poll tax was effective in its conceptual simplicity. However, the problem with this system was the ignorance around the collection and that everyone was required to pay an equal amount irrespective of their earnings level. So there were improvements in the overall system of collection and rules from time to time that has resulted in modern-day taxation. Advantages of the taxation system Following are some of the advantages associated with taxation. Disadvantages of the Taxation System Following are some of the disadvantages associated with taxation. Understanding Free Market A free market is when traders are free to conduct economic activities without the Government’s intervention. The price of goods is merely based on supply and demand because of no Government’s stake in taxes, subsidies, and price regulations. Although, no market in the world is completely free. That is why economists have studied the degree of market freedom and economic well-being and the conclusion was a positive correlation between these concepts. Still, there is a need to analyse if the free market always brings economic well-being and if a country can survive without a tax collection system. To the extent of well-being, it can be considered to add certain value in the economic system by efficient allocation of resources, setting competitive prices, invention, innovation, better quality product, higher economies of scale, and help reduce domestic monopoly. Nonetheless, the problem falls in the area of Government interest to finance social projects and ensure the well-being of the society overall; this is not possible without a robust system of tax collection. On the other hand, the supporters of the free-market claim taxes to have a negative impact on economic activities by reducing the individual incentive to work hard and produce more and that the overall national output is expected to decrease with implementing higher taxes in the national economy. Advantages of