Technopreneurship

Entrepreneurship is the practice of embarking on a new business or reviving an existing

business by pooling together a bunch of resources in order to exploit new found
opportunities.

An innovator or developer who recognizes and seizes opportunities; converts these

opportunities into workable/marketable ideas; adds value through time, effort, money or
skills; assumes the risks of the competitive marketplace to implement these ideas; realizes the
rewards from these efforts. (Kuratko & Hodgetts, 2007)

Entrepreneurship is the act of creating a business or businesses while building and scaling it
to generate a profit

The more modern entrepreneurship definition is also about transforming the world by solving
big problems. Like initiating social change, creating an innovative product or presenting a
new life-changing solution.

An entrepreneur is a person who sets up a business with the aim to make a profit.

Technopreneurship is not a product but a process of synthesis in engineering the future of a

person, an organization, a nation and the world. In a digital, knowledge based society,
strategic directions or decision-making processes will be demanding and complex.

A technoprenuer is an entrepreneur who is technology savvy, creative, innovative, dynamic,

dares to be different and take the unexplored path, and very passionate about their work.

● They take challenges and strive to lead their life with greater success.
● They don’t fear to fail.
● They take failure as a learning experience, a stimulator to look things differently and
stride for next challenge.

Technoprenuer

An entrepreneur who uses cutting-edge technology to develop new business.

(Daniel Mankani, 2003)

Technoprenuer

Is an entrepreneur who involves himself in technological changes in producing goods and

services for his organization. (Sarimah Hanim & Abd. Rashid,2008)

They are entrepreneurs who used“technology” as their driven factor in transforming

resources into goods and services , creating an environment conducive to industrial
growth”…

Technoprenuers continuously go through an organic process of continual improvement and

always try to redefine the dynamic digital economy.

Two type of technoprenuers

1) Technology developers

Those who develop a unique technology capable of driving a new business (inventors)

2) Technology users

Those who see a new technology development and understand how it can be applied to meet
a market need (innovators)

Leading Technoprenuers

1. Mark Zuckerberg Age 34 launched at 20

Net worth $55.7 billion USD Position – Co-founder, Chairman and CEO –
Facebook

2. Dustin Moskovitz Age 34 launched at 20

Net worth $10 Billion USD Co-founder Company – Facebook/Asana

3. Chris Hughes Age 34 Launched at 20

Net worth (US$ million) 950 Co-founder Facebook/Jumo

4. Andrew Houston Age-35 launched at 24

Net worth ($2.2 Billion) CEO and Co-founder - Dropbox

5. Nathan Blecharczyk Age – 34 launched at 25

Net worth 3.7 Billion Position Co-founder– Airbnb

6. Kevin Systrom Age – 35 launched at 26

Net worth $1.3 Billion CEO Company – Instagram

7. Arash Ferdowsi Age – 33 launched at 22

Net worth $1.1 Billion Position – Dropbox

8. Evan Spiegel Age – 28 launched at 20

Net worth $1.6 Billion CEO – Snapchat

9. Bobby Murphy Age – 30 launched at 22

Net worth $1.8 Billion Co- founder– Snapchat

10. David Karp Age – 32 launched at 21

Net worth $200 million CEO – Tumblr

STARTING UP A BUSINESS

1. Develop your idea into a concrete product or service.

Every business whether big or small starts with an idea. This is usually where most
companies are destined to fail or win. You have to realize that it’s not every idea that can
succeed as a business. Some ideas may be interesting to you but to no-one else. If your idea is
to succeed as a business it has to go beyond just you. It must address a sizable number of
people who are willing to pay money for it. Your idea must be influenced by various factors
such as solving a problem, providing a better way of doing things, making life better for
users, giving people a status symbol, etc. There might be plenty of ideas around but you need
to narrow them and come up with one which can be turned into a business. This idea should
enable you to make a profit at one point.

Once you have settled on an idea to pursue, it’s time to develop that idea into something
concrete that end users can actually pay for. This can be a physical product or a service you
offer to your customers. At this stage you may want to scout around to see if your product is
really important to someone other than you. Test it with friends, family and other close
encounters. If it generates interest then you might be on to something.

2. Choose a rewarding business model.

The next stage is developing a rewarding business model for your business.

A business model is how you plan to make money out of your business idea.

There are different business models so doing your research is important here. It’s also
important to note that some business models simply will not work with certain types of
products. An example is selling food as a subscription. Food is generally sold as a once off
commodity. Some examples of business models include:

a. The pay as you go model

In this model, usage is metered and the user pays according to their consumption. Most
telephone network operators and internet access providers use this model. e.g. Telone and
Netone
b. The recurring revenue (subscription) model

This model allows subscribers to pay for services on a per period basis. 6th

In this model, you find someone with a successful business model and then pay royalties to
them. That way you instantly benefit from a proven system instead of starting one from
scratch. Companies like Zuva and Spar use this model.

d. The low cost model

In this model, costs are kept to a minimum allowing the business to reduce their prices to a
very low price. The trick is then to push huge volumes to generate profit. Wholesalers use
such a model.

e. The freemium model

This model offers their basic offering for free and extras at a cost. The trick is to gain a lot of
users since there is no cost to the user. Once a user signs up you then work hard to convert
the free users into paying users. Companies like Skype use such a model.

f. The affiliate model

This model focuses on finding new customers using existing ones. They pay out an affiliate
commission or offer rewards for every referral to the business. Dropbox uses such a model

g. The addon model

This model focuses on making the price of their most basic offering as low as possible. They
will then charge more on the extras that users request.

h. The direct sales model

This model focuses on selling directly to consumers thereby eliminating the need for
distributors and middlemen.

3. Register and incorporate your business.

Once you have developed both a product offering and a solid business model then it’s now
time to formalize your business by registering it. Registering your business is a huge step but
it’s very necessary. It makes your business separate from you. It becomes a corporate citizen
with it’s own legal persona. You need to make your business idea come to life through
incorporating your company.

In Zimbabwe you can register your business as a Private Business Corporation (PBC) or a
Private Limited Company (PLC).

4. Organize and acquire funding.

It cannot be disputed that every business needs capital in order to be operational. Securing
funding for starting a business is a big problem for many start-ups especially in Zimbabwe.
Certain considerations must be taken into account before approaching any venture capitalists,
business angels or putting a hand in your pockets. You need to be clear about how much is
needed and where are you going to get that money. Ask yourself questions like:

How much do l need to start my business?

How much can l raise from personal savings?

Are there any friends or family members who are willing to invest in my idea?

Who else can l approach to help in funding my business idea?

Whether you have capital with you or not, you now need to document your financial
information. Have a budget to work around, which shows your expected revenues against
expected expenses. This tool will be helpful in seeking funds from investors or financial
institutions. You should always bear in mind that a business must not necessarily be started
with a huge capital.

5. Choose a suitable location to work from.

Great care should be placed when choosing where to locate your business because once a
mistake is made, it will be difficult to reverse it. Business location should conform to the type
of business, its operations and target market. It should be noted that, your chosen location
also affect the brand image you will possess later. A wrong choice of location would mean a
need to work harder to get people to your place. Therefore, you should choose a location that
fairly represent your perceived identity. Choose a building that fits well with your target
audience. You can’t operate from a dilapidated and dirty building and expect to attract
uptown customers. Situations do differ, there is no one size fits all here, all you need is to
assess different factors that apply to your type of business, not forgetting your ability to
afford the accommodation cost of the desired location.

6. Establish a distinct brand identity.

Your brand identity is how you want to be perceived by your customers. You need to design
a visual brand identity for your business, which can be a name, color, logo, design or a
combination of them e.g Coca Cola with its red ribbon. This will be a representation of your
business which clients and customers should easily identify. It has been found by researchers
that after a visit to a website, the color choices, size of text and the mood of the design
automatically tells a customer exactly how to feel about your brand. A visual representation
that does not match company values will be confusing and misleading to your audience.
Therefore, customers will not commit funds to something untrustworthy. Visual brand
identity is not about photos and graphics alone, but its summing up everything customers see
and perceive when they look at your business. Brand identity creation is something you can
do yourself but it may be wise to engage the services of a brand identity consultant.

7. Have a strategy in place for marketing and networking.

Having established a brand identity, you need to device tools and techniques to achieve your
sales goals. This is done by doing situational analysis, target market identification, setting
marketing goals, choosing marketing communications strategies and setting a marketing
budget. Mere documentation of a marketing strategy is not enough, for it to be successful it
should be realistic and practically implemented over time with reviews put in place. Having
this in place should help a business to grow, increasing brand awareness and creating trust
with current customers.

Company Registration in Zimbabwe

Register your business in Zimbabwe as a PBC (Private Business Corporation) or PLC

(Private Limited Company).
Zimbabwean law has two provisions for the registration of a business or company. The first
and more common form of business incorporation is the Private Limited Company (PLC).
The second and lesser known (but rising in popularity) form of company registration is the
Private Business Corporation.

A Private Business Corporation has certain advantages and disadvantages. We are calling
them advantages/disadvantages but they may not necessarily be advantages or disadvantages
depending on your particular circumstances. So in that case they are more of features.

Advantages of registering your company as a PBC (Private Business Corporation)

● Easy and cheaper to establish and to operate.

● The life of the Private Business Corporation is perpetual.
● Members have limited liability.
● Transfer of ownership is easy.
● Fewer legal requirements than a private company.
● No need for audits.
● Allows one to register as a sole trader.
● A Private Business Corporation does not pay annual returns at the Registrar of
Companies.
● Can employ an unlimited number of employees.
● A PBC is not limited in terms of how much revenue it can make.

Disadvantages of a PBC (Private Business Corporation)

● The number of members/ shareholders/ owners are limited to 20 natural persons.

● Only individuals (i.e. natural persons) can be shareholders. This means you cannot
have organisations as shareholders.
● Not as popular as the Private Limited Company.

The legal procedures for the registration and administration of a Private Business
Corporation are kept relatively simple.

Key Features of Private Business Corporations

 ● A Private Business Corporation (PBC) is a legal entity.
● Audited financial statements are not required for Private Business Corporations.
● Meetings are not compulsory and can be held on an ad hoc basis.
● Private Business Corporations (PBCs) can become shareholders in other companies.
● The shareholders or owners of a Private Business Corporation are called members.
● All members may take part in the management of the Private Business Corporation.
● The members/ shareholders/ owners of a PBC are not personally liable for the debts of
a Private Business Corporation.

A PBC can be converted to a Private Company Later On.

For example, a Private Business Corporation may have grown substantially and in order to
expand even further, an injection of additional capital by way of shareholders may be
envisaged.

Or, the PBC may find itself competing with large companies (PLCs) and believe that they too
should become a PLC to “even the playing field” in the eyes of their market / customers.
Accordingly, they decide to convert their PBC to a registered company.

Members of Private Business Corporations (PBC)

The members of Private Business Corporations (PBC) are the registered “owners” and are
listed as part of the registration process.

Any changes in respect of the members of the Private Business Corporations (PBC) must be
notified to the Department of Companies & Intellectual Property (DCIP).

Non Zimbabweans may be members of a Private Business Corporation (PBC), provided that
they have at least one Zimbabwean as a member.

A Private Business Corporation may have a minimum of one member and a maximum of 20
members. However there are no limitations in respect of the number of employees in a
Private Business Corporation.
If a member of a Private Business Corporation (PBC) is under 21, the registration document
must be signed by a parent or guardian on their behalf.

Advantages of a Private Limited Company (PLC)

● A Private Limited Company allows another company or organisation to own shares in

the business.
● The Private Limited Company is the most popular form of business incorporation in
Zimbabwe.
● A Private Limited Company makes it easy to separate between members/ owners or
shareholders and directors/ employees.
● The members/ owners or shareholders have limited liability.
● Transfer of ownership is easy.
● A Private Limited Company can employ an unlimited number of employees.
● A Private Limited Company is not limited in terms of how much revenue it can make.

Disadvantages of a Private Limited Company (PLC)

● A Private Limited Company can be de-registered by the Registrar of Companies if it

does not submit annual returns for more than 2 years.
● Has slightly more legal requirements than a PBC.
● A Private Limited Company pays annual returns at the Registrar of Companies.
● A Private Limited Company is slightly more expensive to register and run.

Key Features of Private Limited Companies

● A Private Limited Company (PLC) is a legal entity.

● Audited financial statements are required for Private Limited Companies.
● Meetings are compulsory and are held as general or extraordinary general meetings.
● Private Limited Companies (PLCs) can become shareholders in other companies.
● The shareholders or owners of a Private Limited Company are called members.
● The members/ owners or shareholders of a PLC are not personally liable for the debts
of a Private Limited Company.

Types of Private Limited Companies

● The Companies Act (Chapter 24:03) allows for the registration of 5 different types of
companies namely:
● Private companies (the most common type).
● Public companies (those listed on the Zimbabwe Stock exchange).
● Companies limited by guarantee (mostly used for Non-Profit companies, this form of
company does not have shares).
● Co-operative companies (formed with the purpose of providing service to its
members).
● Foreign companies (mostly used for a company registered outside Zimbabwe that
wants to trade in Zimbabwe)

A PLC can be converted to a Private Business Corporation.

Possible scenarios where this might be desirable could be:

● A Private Limited Company may desire the simple regulatory requirements of a

PBC
● A Private Limited Company may no longer want to pay annual returns.
● A Private Limited Company may now want to trade as a sole trader.

Members of a Private Limited Company (PLC)

The members of a Private Limited Company (PLC) are the registered owners or
shareholders of the company and are listed in the Memorandum and Articles of
Association.

Any changes in respect of the members of the Private Limited Company (PLC) must be
notified to the Department of Companies & Intellectual Property (DCIP).

Non Zimbabweans may be members of a Private Limited Company (PLC), provided that
they have at least one resident Zimbabwean as a director.

A Private Limited Company can have a minimum of one (1) member and a maximum of
fifty (50) members. However there are no limitations in respect of the number of
employees in a Private Limited Company.
 If a member of a Private Limited Company (PLC) is under 18, the registration document
must be signed by a parent or guardian on their behalf.

Directors of a Private Limited Company (PLC)

The directors of a Private Limited Company (PLC) are different from the members/
owners or shareholders of the company and are listed on the CR14.

The minimum required number of directors for a Private Limited Company is two (2).

Private Business Corporation Private Limited Company

Mainly meant for small to medium

Mainly meant for medium to large businesses
businesses

Can accommodate sole traders Only accommodates 2 or more people

Has a legal persona of its own apart

Has a legal persona of its own apart from its owners
from its owners

Has perpetual succession Has perpetual succession

Can have a maximum of 20 directors Can have a maximum of 50 directors

Members are the same as shareholders Shareholders are owners and can be different from
or owners the directors

Companies cannot be shareholders or

Both companies and individuals can be shareholders
hold a member’s interest in a PBC, only
in a PLC
individuals can be members

Comprised of members Comprised of directors and shareholders

Has an incorporation statement and Has a certificate, memorandum, articles, CR6 and
bylaws CR14

Articles of association are not required Registered articles of association gf

Does not require annual return to be

Annual returns are compulsory
lodged

Has member’s contributions Has share capital

Has an accounting officer Has an auditor

Annual general meeting not required Annual general meeting is required

Members hold member’s interest Shareholders hold shares

Can acquire its own shares under certain

Can purchase a member’s interest
circumstance

Members are responsible for the day to Directors are responsible for the day to day
day management of the PBC management of the company

No register of members is required Register of members is required

Offers limited liability to its owners Offers limited liability to its owners

No financial statements needed Audited financial statements

No prohibition on a PBC to provide

Prohibition on a company to provide financial
financial assistance for the acquisition of
assistance for the acquisition of its own shares
a member’s interest

Advantages of registering a company as a PBC or a PLC

Offers limited liability

A company has limited liability and it can sue and be sued in its own name. If the business’
assets are attached over debt this will not affect the owners’ personal assets.

Business continuity

When you do business as an individual, your business dies with you. Registering a business
ensures the continuity of your business beyond just you as a person

Compete for big business

Competing in business as an individual is not easy. The only way to level the playing field is
to be a registered company. That way you can effectively compete with the big guys.

Participate in tenders

Both government and commercial tenders require company papers as one of the conditions
for participation. That means only registered companies are able to get tenders.

Requirements for Company Registration

1. Unique proposed business names (abbreviations are not allowed)

2. Nationality, ID numbers and addresses of the shareholders
3. Zimbabwean physical and postal address of business
4. Nationality, ID numbers and addresses of the directors. At least 1 should be
Zimbabwean
5. The company core business activities
6. The registration fee for the type of company you want to register

Steps involved in registering a PBC in Zimbabwe

The steps:

1. Buy the PBC I form (this will cost you anywhere between $0.50 and $1)from any
bookshop.
 2. Fill the form. This will require you to choose proposed names for your PBC in
descending order of preference. You are advised to Google your desired names first
before writing them down to make sure that a Company (sic) with a similar name
does not exist already.

This is not the same with domain names where you can register somecompany.org
even if somecompany.com exists.

You can try appending phrases like Africa, International (if your startup intends to be
an MNC one day), Zimbabwe etc. Your names must not be offensive and confusing
e.g. Microsoft Zimbabwe. The Registrar reserves the right to refuse any names he/she
deems inappropriate and you cannot appeal.

3. Submit the form at the Companies Registry office. In Harare, it is found near the
corner of Angwa Street and Nelson Mandela Avenue.
4. You will be asked to pay a name search fee of $5.
5. Return after week to check on the progress of your application.
6. If it was successful you will be given CV4 form confirming the name that you have
reserved.
7. Go and buy PBC II form (Cost $2), fill it and submit it together with your CV4 form.
8. You will be asked to pay a fee of $25.
9. Aftere a week and go and check on the progress of your application. If it was
successful you will get your Certificate of Registration.

A Vision Statement

A vision statement presents the organization’s optimal goal and ultimate reason for existence.
For example, Google’s vision statement is to “provide access to the world’s information in
one click.”

They’re broader statements that represent a large overall goal or aspiration. They’re
sometimes considered the legacy your company hopes to leave behind.
A Mission Statement

A mission statement is the overview of how the organization will reach its vision.

Google’s mission statement is “to organize the world’s information and make it universally
accessible and useful.” The idea of organizing the world’s information (contained in the
mission statement) supports the idea of providing access to the world’s information
(contained in the vision statement).

IKEA offers “a wide range of well-designed, functional home furnishing products.” This
supports its vision of creating a better everyday life for many people.

Strategy

A plan of action designed to achieve a long-term or overall aim

Strategy development

Entrepreneurship Strategies

Growth strategies
A. Intensive Growth Strategies

According to Ansoff’s product market expansion grid, a company is exposed to growing

dimensions under intensive growth

1. Market penetration

● gaining more market share with the current company market products in their current
markets.

● The strategy can be implemented as follows.

a. Promoting more usage of the product

b. Attracting competitors’ customers

c. Convincing non users to use the existing product

2. Market development strategy

● Company efforts to find or develop new markets for its current products

a. This can be done by identifying potential uses in the current sales area where interests
for a product or services can be stimulated.

b. Selling new products to existing or current markets.

c. Seeking additional distribution channels in its present location.

3. Product development

● In addition to penetrating and developing markets management should consider new

product possibilities
● Company develops a product’s new features; different quality levels and also tries to
come up with a technological breakthrough a potential product.

B. Integrative Growth

● Business sales and profits can be increased through

a. Backward integration

b. Forward integration

c. Horizontal integration

a. Backward Integration

Is when a company acquires one or more of its suppliers to gain more control and generate
more profit.

b. Forward Integration

Is when a company acquires some wholesalers and retailers especially when they are they
are highly profitable.

c. Horizontal Integration

Is when a company acquires one or more competitors provided the government policies
allow e.g. monopoly, oligopoly.

C. Diversification growth

a. Concentric diversification

b. Horizontal

c. Conglomerate

Diversification Growth.
● Is the most favourable growth strategy if good opportunities can be found outside the
present business?

● An opportunity is one in which the industry is highly attractive and company has the
mix of business strength to be successful.

Types of diversification

a. Concentric diversification

● Holds that the company could seek new products that have technological and or
marketing synergies with the existing product lines even though the new products themselves
may appeal to different groups of customers.

b. Horizontal Diversification

● Holds that a company can produce totally unrelated products using different
manufacturing methods or processes

c. Conglomerate Diversification

● Holds that a company seeks new business that have no relationship to the company’s
current technology products or market suppose a company is producing fax machines and
now seeks to produce furniture

Other Entrepreneurship strategies

●A strategy is a method used to achieve a goal

1. Franchising

●A system of distributing products/services through associated resellers.

●The franchiser gives rights to the franchisee to perform or use something that is the property
of the franchiser

●The objective is to achieve efficiency or profitable distribution of products/services within a

specific area
●Both parties contribute a trademark reputation, known products, managerial know-how
produces or equipment.

Advantages to the franchiser

● Increased distribution

● Some operating costs are transferred

● Marketing/distribution costs shared production accepted by locals when local

franchise ownership is held

● Retains quality control of products is a franchise agreement

Advantages to the franchisee

● Less risk with market tested products

● Pre established promotion and advertising programs provided

● Financial and may be provided.

● Credit available in buying inventory and supplies

●Decision making assistance, management procedure and training.

Disadvantages to the franchiser

● Control of franchisees are far away

● Expenses of training and keeping on travelling for supervisor

● Risk in credit extensions

Disadvantages to the franchisee

Obligatory purchases from franchiser even if better prices elsewhere are available

● Have become expensive e.g To open a McDonald's franchise requires a total investment of
$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.

1. Buying an established business

Advantages

●a business with a goodwill increases the likelihood of successful operation

●has a proved location for successful operation

●has an established clientel

● its inventory is already on the shelves

●Its equipment is already available and its resources and capabilities are known.

Disadvantages

●the buyer inherits any ill will of the existing firm

●certain employees may be inherited which are not assets to the firm

●inherited clientele may not be the most desirable and changing the firms image is usually
difficult

●procedures of the former may be difficult to follow

●renovation expenses

Business Proposal Definition

A business proposal is a written document that offers a particular product or service to a

potential buyer or client.

There are generally two kinds of business proposals:

Solicited Business Proposals: Typically requested by clients, or submitted in response to an

advertisement published by the customer/client.

Unsolicited Proposals: Submitted or given out to potential customers or clients even though
they are not requesting for one.
Solicited business proposals tend to have a higher win rate because they’re more specific to
the person receiving the proposal. Because writing a proposal is such a time-consuming
process, you’ll want to stick to solicited proposals.

This means that if you have a lead list, you first want to qualify the list, and start a sales
conversation (through email, phone calls, etc.) before pitching your service or product.

Business Proposal vs. Business Plan

Quite often, the terms “business proposal” and “business plan” are used interchangeably,
giving you the impression that they are one and the same. But they are not. A business plan is
a “formal statement of a set of business goals” and how these would be achieved. These
documents sometimes can be included in a business proposal

Formally Solicited

Informally Solicited

Unsolicited

Formally Solicited Business Proposals:

In most of the organizations, formally solicited proposal is written in the response of given
requirements by the buyer. In order to meet the needs of the proposal, it is categorized under
the following categories.

RFP (Request for Proposal)

RFP’s contain brief information related to the offer of the customer to make sure the seller
completely fits the needs and demands. Sometimes, it also contains routes to prepare a to the
point proposal along with evaluation criteria. Mostly, RFP’s are issued by the customers
when available products or services do not meet with the requirements.

RFQ (Request for Quotation)

The RFQ is issued by the customer when there is need of a larger quantity of goods. In such
cases, prices are not the only thing to consider, but other services also matters, such as the
availability of commodities, time of delivery and quality of services. An effective proposal
might lead the seller to obtain a big project.

IFB (Invitation for Bid)

Whenever any customer wants to get the needed services such as construction, then IFBs are
issued. The primary goal to issue an IFB is only to check the prices. While on the other hand,
the quality of the services also has much importance, but prices have more impact than the
quality.

RFI (Request for Information)

RFI (Request for Information) issued to get the information about the available products,
services and retailers. Its main purpose is to view “marketing intelligence” and is lead to the
final settlement of business deal. So many sellers take it very seriously and fill the
information according to the requirement carefully. Surely, it is one step to final RFPs, RFQs
and IFBs.

Informally Solicited Business Proposals:

These types of business proposals is an output of oral conversation between the retailer and
the customer. It is also known as the Sole-Source Proposal, because it does not possess any
requirements to meet, just a little meeting and capture the deal. Normally, these proposals is
written in round about 25 pages, and in sometime may goes down to 5 pages or even less.

Unsolicited Business Proposals:

The Unsolicited types of Business Proposals is like a marketing brochure which contains
necessary information about the needs of the seller. In this type of proposal, there is no direct
connection among the sellers and the customers. It is also termed as “leave-behind” or “give-
away” in the last moments of any meeting. The main reason of issuing an Unsolicited
Business Proposal is to increase the chances of sales.
Following are some of the important categories of project proposals.

● Internal Project Proposal

● External Project Proposal
● Solicited Project Proposal
● Unsolicited Project Proposal

1. Internal Proposal

The proposal which is written for someone within the organization is referred to as internal
proposal. Internal proposal does not contain much information or skip certain sections like
qualification section etc.

1. External Proposal

The proposal written by a separate, independent consultant suggesting to conduct a project

for another company is referred to as an external proposal. It can be a proposal from a
company or individual to another company or individual.

1. Solicited Proposal

In case of solicited proposal, the receiver of the proposal requested the proposal in some way.
Generally a Request for Proposals (RFPs) is send out by a company through publicity in
some source of news or through mail. The solicited proposals are only confined to the local
level. For example, an employee can suggest his boss to install new technology in the office
for making performance effective; the boss may be interested in that suggestion and request
that employee to write proposal on this idea for detailed analysis.

1. Unsolicited Proposal

The proposal that is not requested by the receiver in any manner is referred to as unsolicited
proposal. In some cases, the writer of the unsolicited proposal should convince the receiver
that a need or problem is present before beginning of the main part of the proposal.

Solicited Vs Unsolicited Project Proposals

Solicited Project Proposals

An organization (public/private foundation, federal/state agency etc) has solicited proposals
when an announcement is transmitted by the organization about contract/grant/cooperative
agreement program and the organization requests other individual/organization for proposal
submission.

1. Common Solicitation

RFP – Request for Proposals (contract-mostly)

RFA – Request for Applications (Grant)

PA – Program Announcement (Grant)

RFQ – Request for Quotation (contract)

BBA – Broad Agency Announcement

1. Response to Solicitation

It generally involves the following

● Scope of Work
● Key Personnel
● Work plan, aims, methodology
● Budget
● Resources
● Budget Justification
● 1
● TWELVE PARTS OF A PROPOSAL
● 1. Cover Letter
● 2. Proposal Summary
● 3. Introduction
● 4. Problem Statement
● 5. Target Population
● 6. Goal
● 7. Objectives
● 8. Methods
● 9. Evaluation
● 10. Budget
● 11. Future Funding
● 12. Supporting Material
● 2
● Proposal Writing Checklist
● PREPARATION
● 1. You have identified the problem that you want to solve/the
● issue that you want to address, and whether you will work
● on the project on your own or with the support of a group of
● people or an organization.
● 2. You have ensured your availability to commit to the project,
● and your ability to take part in a period in-residence in
● Sydney in the first quarter of 2008
● 3. You have considered and can handle the limitations of grant
● funding.
● WRITING THE PROPOSAL
● 1. Cover Letter
● a. It identifies the applicant submitting the project proposal
● b. It identifies what you are sending them and what you
● are requesting from them.
● c. It is signed by the applicant
● 2. Proposal Summary
● a. It is less than one page.
● b. It describes the problem you propose to solve/the
● issue that you want to address, how you plan to solve
● it, and how much it will cost.
● 3. Introduction
● a. It describes you, your educational and/or professional
● background relevant to the project, your language
● abilities, and shows your involvement and
● understanding of water resources management issues
● in your region /country /locality.
● b. It describes your institutional affiliations, your
● expertise in the field and your ability to design and
● deliver the proposed project, your other programs,
● activities, and accomplishments.
● c. It states why you are interested in the subject area of
● the proposal.
● d. It identifies whether you intend to seek other funding
● sources,
● e. It mentions the support or acclaim you have received
● from others.
● 3
● 4. Problem Statement
● a. It states exactly and specifically what the problem is.67
● b. It identifies the underlying causes of the problem.
● c. It documents the problem and gives evidence for your
● explanation of it.
● d. It states how serious and widespread the problem is.
● It states how many people are affected.
● e. It identifies the likely consequences if the problem is
● allowed to continue.
● f. The problem statement shows that you have a good
● understanding of the problem or issue targeted by the
● proposed project
● 5. Target Population
● a. It identifies the target population and states how
● many of them will benefit from the proposed program.
● b. It shows that you are knowledgeable about the target
● group.
● c. It argues convincingly why the target group has been
● chosen.
● 6. Goal
● a. It identifies what you want to accomplish.
● b. The goal flows logically from the causes of the
● problem.
● c. Accomplishing the goal will reduce or eliminate the
● problem.
● d. It is realistic to try to achieve the goal.
● 7. Objectives
● a. They flow logically from the problem and the goal.
● b. They lead to the reduction of the problem and
● achievement of the goal.
● c. They are specific.
● d. They are measurable.
● e. It is realistic to accomplish them in the time specified.
● f. They identify who is responsible for them.
● g. They state by what date they will be accomplished.
● 8. Methods
● a. They describe how you will accomplish each objective.
● b. They describe who you will work with or who will help
● you, what are their qualifications, and what they will
● do.
● c. They identify other methods considered and rejected.
● 4
● e. They identify the facilities, equipment, and materials
● needed to operate the program.
● f. They provide a time-line of the project development
● and implementation
● g. They explain how the people being served and other
● stakeholders will be able to influence the program.
● 9. Evaluation
● a. It describes the method(s) you will use to evaluate
● (and monitor) the program.
● b. It describes who will carry out the evaluation. When.
● c. It tells the reader what you will be looking for in the
● evaluation.
● d. It describes what will be done with the results.
● 10. Budget
● a. The budget is an accurate reflection of the projected
 ● costs and revenue involved in running your program.
● b. The budget compares favorably with those of similar
● programs.
● c. All the cost items are justified.
● d. It is comprehensive, with all costs directly related to
● the project are taken into account (not the costs
● related to the residency period in Sydney)
● e. It is easily readable. Preferably presented in a
● separate Excel document, with a line for each budget
● item.
● f. It adds up correctly.
● g. It does not exceed the US$10,000 limit for the project
● grant (if additional or on-going funding is required, its
● source should be identified)
● 11. Future Funding (if applicable)
● a. It describes how much financial support will be
● necessary to keep the program going once current
● funding expires.
● b. It identifies the likelihood of additional support,
● including other funders to which the proposal is being
● sent.
● c. It makes a case for the likelihood of those funders
● continuing financial support for the program.
● 12. Supporting Material
● a. Letters of support , prior work in the area
● b. Other supporting material is included (press articles,
● etc.).

Start-Up Business Plans

Detail the steps to start a new business with a start-up business plan. Include sections
describing the company, the product or service your business will supply, market evaluations
and your projected management team. Provide a financial analysis with spreadsheets
describing financial areas including, but not limited to, income, profit and cash flow
projections.
Internal Business Plans

Internal business plans target an audience within the business. Write an internal business plan
to evaluate a proposed project. Describe the company’s current state, including operational
costs and profitability. Calculate if and how the business will repay any capital needed for the
project. Provide information about project marketing, hiring and tech costs. Include a market
analysis illustrating target demographics, market size and the market’s positive effect on the
company income

Strategic Business Plans

A strategic business plan provides a detailed map of a company’s goals and how it will
achieve them, laying out a foundational plan for the entire company. According to the
website, Clean Washington Center, a strategic business plan includes five elements: business
vision, mission statement, definition of critical success factors, strategies for achieving
objectives and an implementation schedule. A strategic business plan brings all levels of the
business into the big picture, inspiring employees to work together to create a successful
culmination to the company’s goals.

Feasibility Business Plans

A feasibility business plan answers two primary questions about a proposed business venture.
According to the University of Colorado Leeds School of Business, feasibility plans attempt
to determine who, if anyone, will purchase the service or product a company wants to sell,
and if the venture can turn a profit. Feasibility business plans include, but are not limited to,
sections describing the need for the product or service, target demographics and required
capital. A feasibility plan ends with recommendations for going forward.

Operations Business Plans

Operations plans are internal plans that consist of elements related to company operations. An
operations plan, according to BPlans.com, specifies implementation markers and deadlines
for the coming year. The operations plan outlines employees’ responsibilities.

Growth Business Plans

Growth plans or expansion plans are in-depth descriptions of proposed growth and are
written for internal or external purposes. According to BPlans.com, if company growth
requires investment, a growth plan may include complete descriptions of the company, its
management and officers. The plan must provide all company details to satisfy potential
investors. If a growth plan needs no capital, the authors may forego obvious company
descriptions, but will include financial sales and expense projections.

Budgeting is the process of creating a plan to spend your money. This spending plan is called
a budget. Creating this spending plan allows you to determine in advance whether you will
have enough money to do the things you need to do or would like to do.

Types of Budgets for Businesses

Budgets help businesses track and manage their resources. Businesses use a variety of
budgets to measure their spending and develop effective strategies for maximizing their
assets and revenues. The following types of budgets are commonly used by businesses:

Master Budget
A master budget is an aggregate of a company's individual budgets designed to present a
complete picture of its financial activity and health. The master budget combines factors like
sales, operating expenses, assets, and income streams to allow companies to establish goals
and evaluate their overall performance, as well as that of individual cost centers within the
organization. Master budgets are often used in larger companies to keep all individual
managers aligned.

Operating Budget
An operating budget is a forecast and analysis of projected income and expenses over the
course of a specified time period. To create an accurate picture, operating budgets must
account for factors such as sales, production, labor costs, materials costs, overhead,
manufacturing costs, and administrative expenses. Operating budgets are generally created on
a weekly, monthly, or yearly basis. A manager might compare these reports month after
month to see if a company is overspending on supplies.
Cash Flow Budget
A cash flow budget is a means of projecting how and when cash comes in and flows out of a
business within a specified time period. It can be useful in helping a company determine
whether it's managing its cash wisely. Cash flow budgets consider factors such as accounts
payable and accounts receivable to assess whether a company has ample cash on hand to
continue operating, the extent to which it is using its cash productively, and its likelihood of
generating cash in the near future. A construction company, for example, might use its cash
flow budget to determine whether it can start a new building project before getting paid for
the work it has in progress.

Financial Budget
A financial budget presents a company's strategy for managing its assets, cash flow, income,
and expenses. A financial budget is used to establish a picture of a company's financial health
and present a comprehensive overview of its spending relative to revenues from core
operations. A software company, for instance, might use its financial budget to determine its
value in the context of a public stock offering or merger.

Static Budget
A static budget is a fixed budget that remains unaltered regardless of changes in factors such
as sales volume or revenue. A plumbing supply company, for example, might have a static
budget in place each year for warehousing and storage, regardless of how much inventory it
moves in and out due to increased or decreased sales.

Example of Proposal Budget

Our Consortium proposes a total price of € 2,223,471,26 (19% VAT excluded) for this
project, distributed as follows:

● Staff Costs: € 897.231,26

● Subcontracts: € 260,00
● Travel Costs: € 980,00
● Other costs: € 000,00

The tables below provide a further breakdown of the budget. (WP stands for ‘work package’
in the tables below.)
Overview

Partner Staff Costs Subcontracts Travel Other Total

Total 1,897,231.26 209,260 91,980 25,000 2,223,471.26

Almira 740,829 3,560 8,100 - 752,489

KatCo 353,181 189,200 3,600 - 545,981

2quarter 89,100 1,500 72,000 - 162,600

Miree 516,121.26 15,000 7,200 - 538,321.26

Lerei 198,000 - 1,080 25,000 224,080

Staff Costs

Almira KatCo 2quarter Miree Lerei Total

Total 740,829 353,181 89,100 516,121.26 198,000 1,897,23

WP1 260,415.50 12,817 6,600 39,204.70 195,400 514,437

WP2 71,562.50 117,254 38,650 206,721.89 - 434,188

WP3 65,991.50 63,635 14,450 102,768.75 - 246,845

WP4 342,859.50 159,475 29,400 167,425.92 2,600 701,760

Subcontracting

Partner WP Total Description

 Almira WP1 1,560 External consultant

Almira WP2 2,000 Survey agency payment

Miree WP3 15,000 Special materials' contractor fee

KatCo WP4 189,200 Commercial subcontractor for assembling

2quarter WP3 1,500 Creative team

Travel Budget

All partners except Lerei will be sending 2 people to each meeting. 9 meetings have been
planned, totalling 18 travellers per partner (9 for Lerei).

Total
Partner WP Travellers Cost per traveller Description
Cost

Almira WP1 18 € 450 8,100 9 Meetings in WP1

KatCo WP1 18 € 200 3,600 9 Meetings in WP1

2quarter WP1 18 € 4,000 72,000 9 Meetings in WP1

Miree WP1 18 € 400 7,200 9 Meetings in WP1

Lerei WP1 9 € 120 1,080 9 Meetings in WP1

Other Costs
The listed cost of €25,000 is for the purchase of a specific accounting software package for
WP1.

Timing

The picture below outlines the timing of the project throughout the 41 planned weeks as well
as the deliverables throughout the project.

Worked Example: Hourly Rate Calculation

Your hourly rate must be related to the actual working hours you have in a year (this is based
on The European Commission’s Horizon 2020 Methodology). Follow these steps to get
started:

Annual Worked Hours

(A) Working days per year 261

(B) Annual holidays (days) 30

(C) Bank holidays (days) 10

 (D) Sick leave and others (days) 10

(E) Working days per years: (A)-(B)-(C)-(D) 211

(F) Working hours per day 8.00

(G) Annual working hours: (A) x (F) 2,088

(H) Hours worked per year: (E) x (F) 1,688

Once that is taken care of, it is time to estimate the hourly rate. To do this you need to have
the following information for each person:

● Employee’s salary
● Employer’s social security charges per year per employee
● Other Direct costs per employee (Lunch tickets, car, telephone…)
● Overhead (if any)

Sum the above costs and divide the total by the hours worked per year to obtain the hourly
rate.

Business Proposal Outline: What Goes in a Proposal?

You’ll want to include the following sections in your proposal:

1. Goals and Objectives

2. Recommended Solution

3. Fee Summary

4. Fee Schedule

5. Estimated Project Schedule

6. Next Steps

7. Terms and Conditions

This outline ensures you start with the reader of the proposal in mind. First, you talk about
the business problem, then the solution, and last is pricing. This leads us to the 3Ps of a
winning proposal.

3 Ps of a Winning Business Proposal

The secret behind writing a winning business proposal and one that will just be set aside is
the presence of what I call the 3 Ps: problem statement, proposed solution, and pricing
information.

Every project is different. But every winning proposal follows the same basic structure. Once
you understand this structure, you’ll save time and land more clients. Instead of starting from
scratch, you can create a proposal you can customize for every project.

Problem Statement

That first step to getting more clients is to convince them that you understand their needs
better than anyone else. That’s where the problem statement comes in.

A su
BUSINESS PLAN

Cover Sheet

On the cover sheet you should include identifying information so that readers will
immediately know the business name, address, phone numbers, names and titles of the
principals (owners), and the date the Plan was prepared.

Table of Contents

Because the table of contents provides the reader an overview of what is contained in the plan
itself, it should be written and presented concisely in outline form, using numerical and
alphabetical designators for headings and subheadings.

Executive Summary

It is the most important part of the business plan. It should be designed to motivate the reader
to go on to the other section of the plan. It should convey a sense of commitment, challenge,
plausibility, credibility and integrity.

It can include

● Major aims and objectives

● Marketing strategy

● Financial projections

● Financial requirements

● Current business position: Legal form, when formed, principal owners and key personnel.

● Major achievements.
NB Executive summary is written last, after the rest of the plan has been developed and
should just be that a summary,so keep it short. 4.

Description of the Business Include the following:

a. Introduction

●Relevant brief history and background of the proposed business

●How the idea for the business original and what has been done to develop the idea up to this
point.

●Owners and manager and their experiences

●Products

– capitalization/sources of funds

●Brief outline of success and achievement

●Date or proposed date for commencement

●Name of business and trading name

●Legal identity/legal form

Industry that it fall under

●location - business addresses

●SWOT Analysis 5.

Ownership and Management Structure

● Describe the owners including those you identified by name and title above

●Give more detail about their experience, qualifications and expertise.

● Describe your management team, along with their abilities, training and experience.

● Draw an organisation Chart

● Draw a table showing name, position, qualifications and experiences, duties and
responsibilities of managers and employees.

● Include organizational structure, including employee policies and procedures. 6.

Marketing Plan

Include information about:

a. Marketing objectives

b. The target market

c. Sales and marketing mix strategy

d. Competitors analysis

e. Research

– That leading to product design

– Confirmation of demand and future research planned.

Product/Operational Plan

● This motives the details of converting inputs to outputs valued by customers

● Specify products/services to be produced

●Raw materials and suppliers

●Optional location for production activities

● Costing of the products offered.

Financial/Plan/Analysis

●Indicate the expected financial results of your operations

●Show prospective investors or lenders

●Include projected financial statements at least up to three trading periods i.e. Trading, Profit
and Loss

● Account; Income and Expenditure Statements; Cash

●Flow statements; Balance Sheets etc.

●There should be an analysis of costs/volume/Profits (CVP) where appropriate.

● Also include budget forecasting for: Production; Sales and Expenses.

●Show the Financing of the business.

Milestone Schedule

●This involves the determination of objectives and the timing of accomplishments.

●It is like a map of how you will go from one place/stage in your business to the next.

●Deadlines should be established and monitored.

Appendix

This section includes supporting documentation for your Business Plan e.g.

● Names of References and Advisors and their addresses and phone numbers

●Bargains, Tables, Charts

●Resumes of officers

●Supportive market research

●Brochures of other published information describing the products you provide.

●Letters of recommendations or endorsements

BUSINESS COMPLIANCE

Compliance is either a state of being in accordance with established guidelines,

specifications, or legislation or the process of becoming so.

This can be with respect to:

Tax

Labour

Regulations

SHEQ
TAX COMPLIANCE

• Is the degree to which taxpayer comply with the tax law and administration

• It can also be defined as seeking to pay the right amount of tax (not more) in the right
place and time as compared to tax avoidance.

• The aim being to have a 100% compliance with Revenue laws

• Tax compliance include;

• Voluntary compliance

• Compliance by enforcement

• Voluntary compliance is adherence to the tax legislation without the use of forced
measure within the laws

• Forced compliance is whereby tax payers comply after some enforcement measure
of the law has been implied

TAX NONCOMPLIANCE

‘Tax noncompliance is a range of activities that are unfavourable to a state’s tax system.
This may include tax avoidance or tax evasion.

None compliance normally occurs in two broad generic categories

a. Commission (what you do)

b. Omission (what you fail to do)

• Both attract penalties per statutes of Zimbabwe & most other countries

TAX AVOIDANCE & TAX EVASION

• ‘Tax avoidance is the legal usage of the tax regime to one’s own advantage, to reduce the
amount of tax that is payable by means that are within the law.’

‘Tax evasion, on the other hand, is the general term for efforts by individuals, corporations,
trusts and other entities to evade taxes by illegal means.

Arm’s length principle

The arm’s length principle (APL) is the condition or the fact that the parties to a transaction
are independent and on an equal footing. Such a transaction is known as an arm’s length
transaction.’

‘The arm’s length principle of transfer pricing states that the amount charged by one
related party to another for a given product must be the same as if the parties were not
related.

Arm’s length price for a transaction is therefore what the price of the transaction would be on
the open market.’

TYPES OF TAXES

INCOME TAX

Income tax is levied on all income and profit received by a taxpayer, which includes
individuals, companies and trusts. Various other types of tax fall under the Income Tax Act,
including capital gains tax, donations tax, SITE, PAYE and provisional tax.

Local businesses are taxed at 28%, individuals are taxed at a rate between 18% and 40%,
while Trusts (excluding special trusts) are taxed at 40% on profit.

VALUE ADDED TAX (VAT)

VAT (Value Added Tax) applies to all goods and serviced at a standard VAT tax rate of 14%.
However, certain items are zero-rated, e.g. exports, petrol, diesel and basic food items (such
as brown bread, milk and fruit). Certain services are exempted from VAT, for example
educational services, public transport and residential rental accommodation.
CAPITAL GAINS TAX

Capital gains tax applies when an asset is disposed of, in other words it changes ownership.
Examples are when a property is sold or company shares are acquired.

PROVISIONAL TAX

Companies automatically fall into the provisional tax system , but anyone who receives
income other than remuneration (for example, rental income from a property or interest
income from investments) is a provisional taxpayer. Three provisional tax payments based on
an estimate of annual income are made during each financial year, the first after six months,
the second at the end of the financial year. The third payment is made 6 months after the
financial year.

PAYE (Pay-As-You-Earn)

When a firm employs personnel, tax is deducted from the employee’s salaries . The
advantage of this is that tax liability for a year is paid off over 12 months, instead of a lump
sum being charged at one time.

TRANSFER DUTY

Transfer duty is payable by individuals when they acquire property at progressive marginal
rates .

CUSTOMS AND EXCISE TAXES

This tax is levied as a specific duty on tobacco and liquor and also on cosmetics, televisions,
audio equipment and motor cars, according to their cost and market value.

STRATEGIES TO ENFORCE COMPLIANCE (ZIMRA)

• Technological advances – SAP Upgrade & web based ASYCUDA WORLD.Automated

Sytsem for Customs Data
• Increased compliance checks, audits, investigations & project based audit/investigations

• Whistle blower program

• Client education and awareness programs

• Exchange of information.

• Use of scanner & sniffer dogs

Compliance Common Shortfalls

● Engaging in old prototype tax planning which does not respect the arm’s length
principle
● Failing to comply with various withholding tax requirements as legislated
– Section 80(A) – tax clearance certificates
– Sourcing fake tax clearance certificates
● Deliberate under payment of Quarterly Payment Dates
● Crediting vat input tax on none vat invoices
● Not subjecting all employment benefits to PAYE or under declaring them
● Treating Group Companies as one single tax entity. Business arrangements should not
be in contradiction with prevailing tax laws – it will cost you money
● Bribery
● Smuggling
● Poor record keeping
– Prescription period
– Not acquitting deferred VAT after the respective 90 days
• Abuse of ATIP (application for temporary importation privileges)

Tax Clearance as compliance in Zimbabwe

A tax clearance certificate is a document that is issued by the Commissioner General of the
Zimbabwe Revenue Authority (ZIMRA) to a person liable to pay tax under any of the Acts
administered by ZIMRA. The certificate is issued upon request to a person whose tax affairs
are up-to-date or has made satisfactory tax compliance arrangements with ZIMRA.

Benefits of a tax clearance

 ● Tax clearance does not necessarily offer a direct benefit. It is usually needed as a
requirement for doing business with other companies. There are certain situations in
which your business may need tax clearance and some benefits a tax clearance
certificate may give your business:
● To participate in government tenders (almost all government tenders require a valid
tax clearance as a condition).
● To participate in public tenders (this is mostly because tax registered companies
prefer to do business with other tax registered companies).
● To prove that you are tax compliant (a tax clearance certificate is proof that you are
paying taxes or are putting your tax issues in order).
● To avoid the 10% withholding fee (tax registered companies are required by law to
withhold 10% from any company that does not have a valid tax clearance. This is
levied only on order amounts above $250 during any tax year).

Tax clearance is available for anyone who is liable pay any form of tax to ZIMRA. This
includes both individuals and companies.

● Individuals or companies that have paid or submitted tax returns.

● Newly registered companies that want to trade with tax clearance requiring businesses
but have not yet paid tax to ZIMRA.
Requirements for tax clearance in Zimbabwe
The requirements for obtaining a tax clearance in Zimbabwe are as follows:
● Certified copies of company papers.
● Certified copies of directors’ IDs.
● Proof of residence for every director (attach affidavit if proof is not in director’s
name).
● Directors’ email addresses and phone numbers.
● Current bank statement of the company.
● Current personal bank statement of one of the directors.
● A budget of $50 – 150 if done through this website.

LABOUR
Labour law refers to the collection of legal rules which govern the employment relationship.
In a broad sense, labour law covers not only the rules which govern the employment
relationship but also embraces the rules regulating the existence and operation of all the
institutions of the labour market, such as trade unions, employers’ organizations

Labour law is concerned with ‘labour or work’ which is done in a position of subordination,
that is, when an employee works under the command, the authority and the control of an
employer, when the work is not carried out in a position of subordination, as in the case of
self-employment, labour law does not apply. If work is done in such a position, the employee
enjoys the full protection of labour law and of social security... Labour law can thus be
described as the body of rules which governs the relationship between employers and
employees who carry out their labour or work in a subordinate position.
Labour Act [Chapter28:01]
Labour law is derived from the labour act [chapter: 20,08] an ACT to declare and define the
fundamental rights of employees.

Labour law has two main purposes:

To perform the social function of protecting employees from the full operation of market
forces through creating a minimum floor of rights for employees, such as maximum hours of
work, protection from unfair dismissals and minimum wages. This is a social justice purpose.

To balance the inequality of bargaining power inherent in the employment relationship by

facilitating the operation of organized labour as a countervailing force to capital. In this
regard, labour law facilitates the operation of workers organizations, sets out the framework
for collective bargaining and creates a platform for the withdrawal of labour as a
countervailing tool in the hands of organized labour

Objectives of the act

● To define unfair labour practices

● To regulate conditions of employment and other related matters
● To provide for the control of wages and salaries
 ● To provide for the appointment and functions of workers committees; to
provide for the
● formation, registration, and functions of trade unions employers organizations,
and employment
● councils
● To regulate the negotiation, scope, and enforcement of collective bargaining
agreements
● To provide for the establishment and functions of the Labour Court
● To provide for the prevention of trade disputes, and unfair labour practices
● To regulate and control collective job action
● To regulate and control employment agencies, and to provide for matters
connected with or
● Incidental to the foregoing.

Labour law vs Collective labour

There is a difference between individual labour law and collective labour law .Labour law
deals with the law regulating the individual relationship between the employer and employee,
while collective labour covers the law regulating the collective relations in the labour market,
such as that between an employer and a trade union or a group of workers or that between a
group of employers (or employers’ organization) and a trade union.
Sources of Labour Law
Labour law is found in four main sources, namely
● Legislation (statutes),
● Common law,
● Custom
Authoritative texts Risk

The Contract of Employment

The contract of employment is the basis of labour law.
It can be traced to the Roman concept of the locatio conductio, i.e. the letting and hiring of
services.
There were three types of locatio conductio:
locatio conductio rei – letting and hiring of a specified item in return for money payment;
locatio conductio operis – letting and hiring of services by an independent contractor;
locatio conductio operarum – letting and hiring of personal services in return for money. It is
the last category that forms the basis of the modern contract of employment.
It is therefore important to determine whether or not an employment relationship (locatio
conductio
operarum) exists, as distinct from a relationship of an independent contractor (locatio
conductio operis ).
The duties and rights of employers and employees only arise if an employment relationship
exists.
Defining an employment relationship It is not always easy to say whether or not an
employment relationship exists. The Labour Act defines ‘employee’ as ‘any person who
performs work or services for another person for remuneration or reward and conditions as
agreed upon by the parties or as provided for in this Act, and includes
Unlikely risks can divert resources that could be used more profitably. Unlikely events do
occur but if the risk is unlikely enough to occur it may be better to simply retain the risk and
deal with the result if the loss does in fact occur. Qualitative risk assessment is subjective and
lacks consistency. The primary justification for a formal risk assessment process is legal and
bureaucratic.

Regulatory Compliance

Regulatory compliance is an organization's adherence to laws, regulations, guidelines and

specifications relevant to its business processes. Violations of regulatory compliance
regulations often result in legal punishment including federal fines

Some regulatory compliance rules are also designed specifically to ensure data protection.
Poor data breach compliance processes can hurt customer retention and negatively impact the
company's bottom line. With the frequency of data breaches continuing to increase,
consumers are placing more trust in companies that closely follow regulatory compliance
mandates designed to protect personal data.

Challenges with compliance

Companies that do not follow mandatory regulatory compliance practices face numerous
possible repercussions, such as being forced to participate in remediation programs that
include on-site compliance audits and inspections by the appropriate regulatory agency.
Noncompliant organizations usually face monetary fines and penalties. Brand reputation can
also be damaged by companies that experience repeated -- or particularly glaring --
compliance breaches.

Following compliance rules can be costly from an infrastructure and personnel standpoint. As
companies are required to spend capital in order to comply with compliance laws and
regulations, they must also try to appease stakeholders and maintain business processes by
turning a profit. These financial challenges surrounding compliance are particularly acute in
highly regulated industries such as finance and healthcare. Other business strategy-associated
challenges that come with maintaining regulatory compliance include:

Determining how emerging regulations will influence business direction and the existing
business model

Incorporating and developing a compliance culture and promoting this culture throughout the
organization

Deciding on and hiring compliance roles and accountabilities, as well as the compliance
functions required by the legal, compliance, audit and business departments

Anticipating compliance trends and integrating regulatory processes that increase efficiency

Constantly evolving consumer technology also poses compliance complications for

companies. The use of personal mobile devices by employees in the workplace, for example,
creates compliance concerns because these devices store sensitive, compliance-relevant
company data. The proliferation of the internet of things has led to huge growth in the
number of endpoints and interconnected devices -- and lacking security for mobile and IoT
devices creates compliance vulnerabilities in organization's networks. For digitized
companies to remain compliant, they must stay on top of required updates and immediately
patch existing software when vulnerabilities are detected.

How compliance is different across industries, countries

Some industries are more heavily regulated than others. The financial services industry is
subject to regulatory compliance mandates designed to protect the public and investors from
nefarious business practices. Energy suppliers are subject to regulations for safety and
environmental protection purposes. Government agencies are required to follow compliance
regulations that mandate equality and ethical staff behavior.

SHEQ COMPLIANCE

The S&H Management Program is the employer’s method for preventing injuries and
illnesses to employees

● Identify the hazards

● Control or prevent the hazards
● Identify potential hazards
● Teach employees to do all of the above

Safety & Health Program Elements

 Management
Safety & Health Commitment &
Training Employee
Safety & Involvement
Health
Management
Program
Guidelines

Hazard Prevention Worksite Analysis

and Control

Management Commitment and Employee Involvement

o Develop and communicate a safety and health policy to all employees.

o Demonstrate management commitment by:
▪ instilling accountability for safety and health,
▪ obeying safety rules and reviewing accident reports.
▪ Other
o Conduct regular safety and health meetings involving employees, managers
and supervisors.
o Assign responsible person(s) to coordinate safety and health activities and
provide resources to accomplish the program goals..
o Integrate safety and health into business practices (e.g., purchases, contracts,
design and development).
 o Involve employees in safety and health related activities (e.g., self-inspections,
accident investigations and developing safe practices).
o Recognize employees for safe and healthful work practices.

Worksite Analysis

o Evaluate all workplace activities and processes for Safety & Health hazards.
o Reevaluate workplace activities when there are changes in:
● Processes or worksite
● Materials
● Machinery
o Conduct on-site inspections, identify hazards and take corrective actions.
o Provide a hazard reporting system for employees to report unsafe and
unhealthful conditions.
o Investigate all accidents and near misses to determine their root causes.

Hazard Prevention and Control

o Eliminate and control workplace hazards (e.g., engineering controls, workstation

design and work practices).

o Establish a preventive maintenance program.

o Keep employees informed of safety and health activities and conditions.

o Plan for emergencies (e.g., create an evacuation plan, train employees and conduct
fire drills).

o Record and analyze occupational injuries and illnesses near misses/hits.

Idea Generation
Central to creativity is the ability to generate ideas. Some psychologists and philosophers
(going back to Aristotle and Plato) have argued that idea formation can be explained by way
of association.
Mednick and Mednick (1964) suggested three ways association may be applied in the
formation of ideas:
i) Serendipity - association of ideas can be done accidentally e.g. discovery of penicillin,
ii) Similarity - ideas are associated by similarity in one dimension,
iii) Mediation - ideas are evoked through the mediation of associates that they have in
common.
Brainstorming
One of the most popular free association techniques is brainstorming, which adheres to the
fundamental rules of creative thinking, as introduced above. Brainstorming sessions can be
conducted electronically, or verbally. Brainstorming was originally proposed by Alex Osborn
(1957) as a means of generating as many ideas as possible from group work. He claimed that
a group can generate twice as many ideas as individuals working alone, provided that the
group follows a systematic approach and adopts four rules. Osborn's purpose in suggesting
these rules was to overcome social and motivational difficulties that might inhibit the
generation of ideas in groups.
The four rules are:
1. No criticism is allowed,
2. Freewheeling is welcome,
3. Quantity wanted,
4. Combination and improvement are sought.

Nominal Group Technique

Nominal Group Technique (NGT) is a variation of the `brainstorming' process developed in
late 1960s. NGT is described as a means of generating alternative solutions to problem in-
group sessions (Aurum, 1997). NGT was originally developed for face-to-face group
meetings. The technique has two main parts: generating ideas first, and discussing ideas later.
In the meeting, group members sit around a table in full view of each other. A leader then
introduces the problem to members.
In the first part, each member writes their own ideas on a card or a pad. The members do not
communicate with each other while writing their ideas. Later, each group member presents
their idea (one idea at a time, in rotation). The leader writes the ideas on a board that can be
seen easily by everybody.
In the second part, the discussion starts and the leader asks members' comments, opinions on
each idea. More ideas can be added at this stage. When the commenting stage is finished,
each group member writes their own favourite ideas on a card in ranking order.
In this technique, the writing process is time consuming. Members may become bored after
they finish presenting their ideas and lose interest in the topic. The advantage of this
technique is that it incorporates a ranking procedure in the selection of ideas. However, the
ranking process has been found to be time consuming in large groups or where there is a
large number of ideas (Huber, 1982). NGT is a useful technique when there is a need to
overcome the adverse effects of social pressure in the group.
Delphi Technique
The Delphi Technique (DT) was introduced in the 1950s by the RAND Corporation. DT uses
a survey of experts' opinion in which experts review one another's ideas. In this technique, a
group of experts is first chosen to participate, and a small team is set up to prepare a set of
questionnaires on the topic. This team then sends the questionnaires, together with some
supporting information on the topic, to the experts (geographically dispersed groups), or
gives the material to the experts during face-to-face meetings. Each member responds to the
questionnaires anonymously. Later, the team collects the responses and statistically
summarises them. The team prepares another set of questionnaires based on the experts'
responses (or the same questionnaires that are used previously), and again distributes these
questionnaires alongside the summarised data to experts. This process continues until the
group reaches a consensus.
DT emphasises agreement (consensus) between experts. It has been found to be useful where
statistical information is important such as forecasting. It is also used as a method where
controlled anonymous group interaction is necessary.

KJ Method
The KJ Method (also known as affinity diagrams) is another brainstorming tool, and was
originally developed in the 1960s by Jiro Kawakita of Japan. This method was used
originally for anthropological fieldwork to generate ideas from gathered and stored data.
However, it has also been widely used within Japanese business (Ohiwa et al., 1990).
The original method involved having group members write their ideas onto cards. However,
in later years, Ohiwa et al. (1990) developed the system for computer-supported
environments by using HyperCard. The application of the method has two major
components: First, a diagram (named `Atype diagram') is produced to assist in the generation
of ideas and to also illustrate the relationships between ideas (participants write down their
ideas on cards and then the cards are grouped, based on similarity). Second, generated ideas
are recorded on a document – which is called `B-type writing'.
Relationships between the card groups (such as opposition, equality, causality) are then
outlined by drawing arrows.

Mind Mapping
Another free association technique is mind mapping. This method involves starting with
writing down a main idea in the centre of the page, and then working outward in all directions
(which visually appears to be like wheel spokes), producing a growing and organised
structure composed of key words and key images. Mind mapping therefore relies on
association (and clustering) of concepts/ issues. The association process underlying
construction of the mind map, actually facilitates making connections between concepts, and
hence tending to generate new ideas and associations that have not been thought of before.

Solo Brainstorming
An individual creativity technique is Solo Brainstorming (SBS), originally proposed by
Aurum (1997). This technique is especially suited to environments where sentential analysis
is appropriate, or information sources are document-based (e.g., reports, abstracts,
testimonies, interview transcripts, web publications). The SBS technique (as shown in Figure
3.2) requires the individual to adhere to a formal protocol (procedure), where a series of
documents are examined (‘reading’ stage), and then edited. The ‘editing’ stage consists of the
following activities: typing a summary of each document; making lateral comments/links
(e.g. making connections between documents; noting ideas as they occur); and nominating
issues to be followed up. The ultimate aim in a SBS session is to determine a sufficient set of
issues

PROTECTING BUSINESS (IP, NDAS, CONTRACTS, PATENTS)

Risk management processes

Too highly could keep an organization from ever completing a project or even getting
started. This is especially true if other work is suspended until the risk management process is
considered complete. It is also important to keep in ind the distinction between risk and
uncertainty. Risk can be measured by impacts x probability.

AREAS OF RISK MANAGEMENT

Enterprise risk management

In enterprise risk management, a risk is defined as a possible event or circumstance that can
have negative influences on the enterprise in question. Its impact can be on the very
existence, the resources (human and capital), the products and services, or the customers of
the enterprise, as well as external impacts on society, markets, or the environment. In a
financial institution, enterprise risk management is normally thought of as the combination of
credit risk, interest rate risk or asset liability management, market risk, and operational risk.
In the more general case, every probable risk can have a pre-formulated plan to deal with its
possible consequences (to ensure contingency if the risk becomes a liability). From the
information above and the average cost per employee over time, or cost accrual ratio, a
project manager can estimate:

● The cost associated with the risk if it arises, estimated by multiplying employee costs per
unit time by the estimated time losT

This is slightly misleading as schedule variance with a large P and small S and vice versa are
not equivalent. (The risk of the RMS Titanic sinking vs. the passengers' meals being served at
slightly the wrong time).

as this is a function of it, as illustrated in the equation above. Risk in a project or process can
be due either to Special Cause Variation or Common Cause Variation and requires
appropriate treatment. That is to re-iterate the concern about external cases not being
equivalent in the list immediately above.

Risk management activities as applied to project management

In project management, risk management includes the following activities:

Planning how risk will be managed in the particular project. Plans should include risk
management tasks, responsibilities, activities and budget.

Assigning a risk officer - a team member other than a project manager who is responsible
for foreseeing potential project problems. Typical characteristic of risk officer is a healthy
scepticism

Maintaining live project risk database. Each risk should have the following attributes:
opening date, title, short description, probability and importance. Optionally a risk may have
an assigned person responsible for its resolution and a date by which the risk must be
resolved.

Creating anonymous risk reporting channel. Each team member should have possibility to
report risk that he/she foresees in the project.

● Preparing mitigation plans for risks that are chosen to be mitigated. The purpose of the
mitigation plan is to describe how this particular risk will be handled

What, when, by who and how will it be done to avoid it or minimize consequences if it
becomes a liability.

● Summarizing planned and faced risks, effectiveness of mitigation activities, and effort
spent for the risk management..

Risk management of Information Technology

Information technology is increasing pervasive in modern life in every sector. IT risk is a risk
related to information technology. This relatively new term due to an increasing awareness
that information security is simply one facet of a multitude of risks that are relevant to IT and
the real world processes it supports. A number of methodologies have been developed to deal
with this kind of risk.

Risk management and business continuity

Risk management is simply a practice of systematically selecting cost effective approaches

for minimizing the effect of threat realization to the organization. All risks can never be fully
avoided or mitigated simply because of financial and practical limitations. Therefore all
organizations have to accept some level of residual risks. Whereas risk management tends to
be pre-emptive, business continuity planning (BCP) was invented to deal with the
consequences of realized residual risks. The necessity to have BCP in place arises because
even very unlikely events will occur if given enough time. Risk management and BCP are
often mistakenly seen as rivals or overlapping practices. In fact these processes are so tightly
tied together that such separation seems artificial. For example, the risk management process
creates important inputs for the BCP (assets, impact assessments, cost estimates etc.). Risk
management also proposes applicable controls for the observed risks. Therefore, risk
management covers several areas that are vital for the BCP process. However, the BCP
process goes beyond risk management's pre-emptive approach and assumes that the disaster
will happen at some point.

Risk communication

Risk communication is a complex cross-disciplinary academic field. Problems for risk

communicators involve how to reach the intended audience, to make the risk comprehensible
and relatable to other risks, how to pay appropriate respect to the audience's values related to
the risk, how to predict the audience's response to the communication, etc. A main goal of
risk communication is to improve collective and individual decision making. Risk
communication is somewhat related to crisis communication.

Bow tie diagrams

A popular solution to the quest to communicate risks and their treatments effectively is to use
bow tie diagrams. These have been effective, for example, in a public forum to model
perceived risks and communicate precautions, during the planning stage of offshore oil and
gas facilities in Scotland. Equally, the technique is used for HAZID (Hazard Identification)
workshops of all types, and results in a high level of engagement. For this reason (amongst
others) an increasing number of government regulators for major hazard facilities (MHFs),
offshore oil & gas, aviation, etc. welcome safety case submissions which use diagrammatic
representation of risks at their core. Communication advantages of bow tie diagrams:

● Visual illustration of the hazard, its causes, consequences, controls, and how controls fail.

● The bow tie diagram can be readily understood at all personnel levels.
● Accept and involve the public/other consumers as legitimate partners.

● Plan carefully and evaluate your efforts with a focus on your strengths, weaknesses,
opportunities, and threats.

● Listen to the public's specific concerns.

● Be honest, frank, and open.

● Coordinate and collaborate with other credible sources.