Pros And Cons Of Owning A Franchise

  • Written by Isaac Kwasi Adusei
  • Category: News

South Africa is without a doubt a land of opportunities as far as business is concerned. Support is given to those youth who want to venture into business. Running what type of business remains a personal choice. The franchising industry regularly likes to remind us that being a franchisee is a safe and potentially very profitable career. While this may be true, there are also downsides. We look at the best and worst aspects of being a franchisee:

Pros:

1. A Well Known Name Can Lead To Big Success: Working under a well-known brand name such as Nandos or KFC has obvious benefits for franchisees. There is increased security for your enterprise, not only are you following a tried and tested format, you can also benefit from the bigger bank balances of the larger corporations when it comes to funding for improvements.

2. Ongoing Help And Support: Once you take up your franchise, your franchiser won’t simply wave you goodbye and let you run their brand into the ground without a word of advice. As well as training programs and first-hand support, most franchisers help find and retain customers and assist with setting up accounting or stock control systems.

3. Defined Territory: Franchisers carefully choose the location of their outlets to gain the largest possible amount of custom and to avoid treading on each other’s toes. Also, unlike starting a business from scratch, many franchisers can afford prime trading premises.

4. Greater Access To Finance: If your franchiser is reluctant to part with vast amounts of cash for your start-up costs, there is no need to panic, banks will be happy to help you out. As a franchisee, you are looked upon more favorably when it comes to bank loans.

Cons:

1. Initial And Continuing Fees: Franchisers will charge new franchisees a lump sum to startup a business using their brand name. Many will insist that you purchase most of the materials you need from your own pocket, and some will demand that you have a certain amount of working capital before you are even considered to be a suitable candidate.

2. You Do Things Their Way, Not Yours: As mentioned before, each franchisee will gain training and guidelines on how the business should be run. Although this is a helpful leg-up into running your own firm, after your franchise is established you may feel your entrepreneurial creativity is somewhat restricted.

3. Other People’s Decisions Could Sink Your Franchise: The lack of actual control you have over your franchise means that even if you run a profitable outlet, you could still lose everything if your franchiser makes bad business decisions and the firm fails.

4. You Cannot Escape Hard Work: If you take on a franchise under the impression that the franchiser will do all of the hard work for you while you sit back and watch the money roll in, you will be in for a nasty shock. Working weeks of 60 hours or more are not unheard of among franchisees attempting to get their business off the ground. -Youth Village, SA

 

Related: Africa could feed the world - if it overcomes these key challenges

 

 

Stanbic Business Incubator to support 1,500 SMEs

  • Written by Isaac Kwasi Adusei
  • Category: News

About 1,500 small and medium enterprises (SMEs) in Ghana are expected to benefit from a new business incubator project initiated by Stanbic Bank Ghana.

Known as Stanbic Business Incubator, the project is aimed at building strong SMEs to help accelerate the socio-economic development of the country.

 

 

The Head of Emerging Payments at the bank, Mr Patrick Quantson, told graphic business after an entrepreneurship conference on Wednesday, August 22 in Accra, that the business incubator initiative was open to SMEs in the country.Credit Youth Village 

 

He observed that a strong SMEs sector was important for the growth of every economy, advanced or developing.

Contribution of SMEs

In Ghana, more than 90 per cent of all registered businesses fall in this category with a similar proportion of the industrial sector making it into the category.

The sector is essential for several reasons including creating jobs, supporting the agricultural and primary commodities sub-sectors and also generating foreign exchange for the economy when a good chunk of the SMEs build up competitiveness and capacity to play in the global or regional marketplace.

Mr Quantson said the Stanbic Bank as an organisation had identified the need to develop and nurture SMEs for them to contribute to the socio-economic development of the country.

“The business incubator project which is to serve as a corporate social responsibility arm of the bank.Therefore, we believe that there is a huge room for SMEs to be supported in order for them to contribute towards the growth of the country,” he added.

He observed that the business incubator project was expected to operate on five strategic pillars which includes ideation, incubation, acceleration, value chain, and financial inclusion.

The conference

The entrepreneurship conference exclusively organised for women by Stanbic Bank in partnership with Lionesses of Africa, a corporate women’s group in Africa,On the theme, “Powering a new era of women’s entrepreneurship in Ghana,” encouraged women entrepreneurs to take pragmatic actions to improve their fortunes.

The Founder of Lionesses of Africa,Ms Melaine Hawken, urged women entrepreneurs in the country who were operating SMEs to embrace best practices to strengthen their operations and compete with their peers to take advantage of the recent enormous investor interest in Africa as the destination for businesses in the near future.

“Our SMEs should embrace good corporate governance, treat business as a science beyond their interest in the bottom line – profit and loss – to the employment of tested management strategies and human resource development,” she stated.

“For our SMEs and businesses to be ready for the competition, we need to define our businesses the way international bodies such as the World Bank, the European Union and the Organisation for Economic Co-operation and Development (OECD) define SMEs,” she told business entrepreneurs.

She said holding up themselves to those high standards for SMES, as pertained in the advanced world was the only way local businesses could stand neck to neck with their counterparts wherever they came from.

Source: graphic.com.gh Picture Credit: Youth Village

 

Related: 

 

Ghana’s ‘Right of Abode’ Program Attracts More Black People from Across the Globe

  • Written by Super User
  • Category: News

Photo credit: Tameshia Rudd-Ridge

 By Manny Otiko Photos credit: Tameshia Rudd-Ridge

Several centuries ago, Ghana was known as one of the starting points of the Transatlantic Slave Trade. Today, the modern state of Ghana is gaining a reputation for being a destination for Blacks in the Diaspora who want to reconnect with their roots.

Ghana currently offers the “Right of Abode” program, which allows people of African descent to gain permanent residency. According to the Ghanaian Immigration Act of 2000, “The concept of right of abode under Immigration Law is that person having the right of abode ‘shall be free to live and to come and go into and from the country without let or hindrance.

There is some confusion about the law, according to Tameshia Rudd-Ridge, who is originally from Plano, Texas, and moved to Accra, Ghana’s capital, last September.

Rudd-Ridge said there is a thriving community of Black expatriates in Ghana, people from the United States, the Caribbean and Brazil. However, Rudd-Ridge said there is a generational divide between the African Americans. Some Black Americans settled in the country back in the 1960s, when they were encouraged to move there by Kwame Nkrumah, Ghana’s first president and leader of the Pan-African movement. Now there are newer Black American emigres, like Rudd-Ridge, who have moved there to play a role in Ghana’s on-going development and pursue economic opportunities.

Rudd-Ridge, who is conducting research on youth civic engagement and new media, is also working on a master’s degree in communication from the University of Arkansas. She lived in Rwanda before moving to Ghana and is on a journey to travel to all 54 nations on the continent. She is part of the team behind a website and app called Tastemakers Africa. The company is revolutionizing what the world thinks about travel in Africa and helping travelers book unique experiences in African cities.

Rudd-Ridge said one of the biggest challenges of doing business in Ghana is dealing with the irregular power supply. This has caused her to become quite creative in finding business sites with regular power, so she can continue working during power outages.

Unlike Rudd-Ridge, Arkansas native Mona Boyd has been living in Ghana for more than two decades. She moved there 22 years ago, with her husband and son, and has taken advantage of Ghana’s business potential.

“We also recognized the business opportunities available in Ghana, so we decided to leave our jobs in private industry and move to Ghana to open our own business,” Boyd said.

 

However, Boyd said it was a struggle when she first moved there.

“When my husband and I began our businesses it was very difficult,” Boyd said. “The business infrastructure was almost non existent. We had no business track record in Ghana, so we couldn’t get a loan for over five years. Telephones didn’t work most of the time, finding properly trained manpower was extremely difficult, nothing worked the way it was supposed too.”

Boyd said she knew several Ghanaians who returned home,

Photo credit: Tameshia Rudd-Ridge

got frustrated and eventually returned to America. Boyd and her family decided to stick it out and it has paid off.

“We stayed with it because failure was not a choice so we were tenacious and kept trying,” Boyd said. “I am so glad we did because today we have two successful businesses that are doing very well.”

She currently owns an Avis car rental company and also operates Landtours Ghana, a travel company that organizes tours in several African nations. Boyd has also taken advantage of the Right of Abode program and now has dual citizenship.

“I first heard about the Right of Abode law around 1998 through the African-American Association in Ghana and I applied for dual citizenship around 2000,” Boyd said.

She was concerned Black Americans interested in the Right of Abode program might have trouble navigating through the local bureaucracy.

“Most African Americans know about the law but they do not know how to go about applying for dual citizenship,” Boyd said. “It is difficult to know where to go to apply and to find out what is required. There are no written guidelines that I know of that provide instructions on how to apply for dual citizenship.”

Although Boyd seems to be doing well in Ghana, she still visits the United States regularly.

“I return to the U.S. at least four times a year. Most of these visits are for business. Many of our clients are based in the U.S.,” Boyd said. “I was born in the U.S. and America was my home for most of my life. I do miss the ease of doing things and the conveniences of having everything readily available.”

Source: atlantablackstar.com

Related: 

African-Americans resettle in Africa

The $500 Million Baby: Meet 'Mo' Dewji, Who Vows To Be Africa's Richest Man

A 17 year Old Kenyan is Making Over $40,000 Revenue With An MIT Endorsed Technology

Meet the World's 10 Richest Black Billionaires

  • Written by Isaac Kwasi Adusei
  • Category: News

Picture credit: Go2africa.com

 

Bill Gates, Warren Buffett, and Jeff Bezos may be the richest men in the world, but they aren't the only billionaires.

There are 2,043 people across the globe with three commas in their net worths, according to the 2017 Forbes Billionaires list. The 23 wealthiest have $1 trillion collectively.

In 2017, 10 of the world's billionaires — fewer than 1% — are black, down from 12 last year, reports Forbes contributor Mfonobong Nsehe. Three of the 10 are women. All but one, Isabel Dos Santos, are billed by Forbes as self-made.

To compile the full list, Forbes uses stock prices and exchange rates to estimate the net worths of the world's richest people, and then ranks them based on their wealth. This year's list was created using data from 17 February 2017, but Forbes also maintains a current snapshot of the world's billionaires, updated daily.

Continue reading to see the richest 10 black billionaires in the world, according to the 2017 Forbes Billionaires list.

 

Aliko Dangote: $12.2 billion

The wealthiest man in Africa is Nigerian Aliko Dangote, 60, who has been CEO and president of Dangote Group for 35 years. The majority of his fortune comes from a more than 90% stake in Dangote Cement, Africa's largest producer of cement, which is traded on the Nigerian Stock Exchange. He is also an active philanthropist, serving as chairman of The Dangote Foundation, which focuses on education, agriculture and health-related initiatives.

 

 

 

 

 

Mohammed Al Amoudi: $8.4 billion

Mohammed Hussein Al Amoudi, 71, moved from Ethiopia to Saudi Arabia when he was 19, and began amassing his fortune from government-contracts in real estate and construction, according to Bloomberg. Now, the father of eight owns businesses across multiple industries, including oil, mining and agriculture, in Saudi Arabia, Ethiopia and Sweden.

Mike Adenuga: $6.1 billion

Nigerian Mike Adenuga, 64, is chairman of telecommunications company Globacom, which has 36 million subscribers, as well as the majority owner of Lagos-based oil company Conoil, according to Bloomberg. While earning an MBA from Pace University in New York, he drove a taxi to pay the bills. Today, Adenuga, who has seven children, is the second-wealthiest man in Nigeria, according to Forbes.

 

 

 

Isabel Dos Santos: $3.1 billion

The wealthiest of the three woman to make this list, and the youngest black billionaire in the world, 44 year-old Isabel Dos Santos is the daughter of Jose Eduardo dos Santos, who has been president of Angola since 1979. Her fortune comes from multiple investments, many of which are controversial and linked to her father, according to Forbes, although Dos Santos maintains her investments are private and independent.

 

 

 

 

 

 

Oprah Winfrey: $3 billion

Oprah Winfrey, 63, is the only African-American woman to make the Forbes billionaire list. Winfrey overcame a tough childhood to become the well-known and beloved media mogul she is today. While generous with her wealth, Winfrey still maintains an enviable lifestyle. Earlier this year, Winfrey delivered the commencement address at Smith College, telling graduates the secret to success is serving others.

Robert Smith: $2.5 billion

When Robert Smith, 54, left Goldman Sachs in 2000 to start his own private equity firm, Vista Equity Partners, his coworkers thought he was crazy. But since then, his success and wealth has sky-rocketed, landing him on the Forbes Billionaire list for the first time in 2016. In 2015, Smith wed Hope Dworaczyk, a former Playboy playmate and mother of his young son in an incredible villa on the Amalfi Coast in Italy. The private-equity titan, who resides in Austin, Texas, added his name to the Giving Pledge earlier this year.

 

 Patrice Motsepe: $1.81 billion

South-African Patrice Motsepe, 55, founder of the mining company African Rainbow Minerals, was Africa's first black billionaire. The father of three was also the first African to sign Bill Gates' Giving Pledge, promising to donate at least half of his wealth to charity. Motsepe and his wife Precious created the Motsepe Foundation in 1999 to help create new jobs, support education, and improve the lives of children, the unemployed, and the disabled, among others.

Folorunsho Alakija: $1.61 billion

Folorunso Alakija, vice chair of Nigerian oil company Famfa Oil, got her start in business as the founder of an elite Nigerian fashion label, according to Forbes. The 66 year-old self-made billionaire lives in Lagos, Nigeria and has four children. Her son, Folarin Alakija, recently married Iranian model Nazanin Jafarian Ghaissarifar, in a lavish, multi-million dollar wedding, which took place in England.

 

Michael Jordan: $1.31 billion

One of the most successful athletes of all time, Michael Jordan, 54, made a total of $90 million as a basketball player, according to Forbes. Since retiring from the NBA, he has amassed the majority of his wealth through his relationship with Nike and other corporate partnerships. Jordan, who also owns a stake in the Charlotte Hornets, now makes more in one year than he did during his entire professional basketball career, as Business Insider's Cork Gaines reported.

 

 

 

Mohammed Ibrahim: $1.14 billion

Self-made billionaire, 71 year-old Mohammed Ibrahim, was born in Sudan and now lives in the United Kingdom, where he is the 11th wealthiest citizen. Ibrahim became a billionaire after selling his telecommunications company, Celtel International, in 2005, according to Forbes. Now he spends much of his time focusing on improving the lives of African citizens through the Mo Ibrahim Foundation.

Originally posted on: Independent.co.uk  

 

Related:

 

 

 

 

African-Americans resettle in Africa

  • Written by Super User
  • Category: News

Ghana is the first African country to open its doors to people of African descent from all over the world..

The logo of the International Decade for People of African Descent

The logo of the International Decade for People of African Descent

In Prampram, a town just an hour’s drive east of Ghana’s capital Accra, many holiday houses line the shores of the South Atlantic Ocean. One of them belongs to Jerome Thompson. Located only 500 metres from the water, Mr. Thompson’s house is resilient to the effects of the salt and wind. The floors, windows and doors are made of hard wood. His self-designed furniture is made from quality Ghanaian timber and hand-carved by local artisans.

“The ocean helps me fall asleep and wakes me up in the morning,” says Mr. Thompson, an African-American retiree taking a stroll on the beach where palm trees shade hand-carved canoes. “Where else can I live this close to the ocean? It would cost me millions of dollars!” 

Mr. Thompson, a native of Maryland in the United States, retired to Ghana 11 years ago. He first visited the West African country on a tour in 2000. “I fell in love with Ghana and its people,” he recalled, during an interview with Africa Renewal. “It was good seeing black people, my people, in charge of the country (Ghana).”  

That trip took him to many attractions across the country, including the Cape Coast Castle from where centuries ago millions of Africans walked through the infamous “Door of No Return” into slave ships bound for plantations in the Americas and the Caribbean, never to set foot in their homelands again.

But for their descendants like Mr. Thompson’s, the sign that hangs on that infamous door today reads: “Door of Return”. 

“I was so ready to turn my back on the United States,” he says, adding: “We did so much for the US, yet they don’t want to see us as first-class citizens.” 

A feeling of belonging 

Mr. Thompson is one of the 20 or so African-Americans and other people from the diaspora of African descent who have found a home in this fishing community, attracted by the beaches and the peace and tranquility the town offers away from the hustle and bustle of Accra. 

According to 2014 estimates, more than 3,000 African-Americans and people of Caribbean descent live in Ghana, a country of about 26 million people. 

Whatever their motives, Ghana, the first sub-Saharan Africa country to shake off colonial rule 58 years ago, has become the destination of choice for diasporans looking for a spiritual home and an ancestral connection in Africa.

While some returnees have gone through the emotional journey of tracing their families through DNA testing, for the majority who just come to visit, or to settle like Mr. Thompson, the feeling of being “home” on the continent is satisfying. “It’s good to know that you came from some place and it’s not just a figment of someone’s imagination,” he says. 

Claudette Chamberlain shares Mr. Thompson’s feelings of belonging. She was born in Jamaica but lived in the US and United Kingdom. Seven years ago, she moved to Ghana and built a five-bed guesthouse at Prampram. 

“When I got off the plane, I just had this overwhelming feeling come over me,” Claudette says, adding that she realized then that Ghana was the place she wanted to be. She misses her mother and siblings who still live in London but she doesn’t miss London. “Ghana is definitely home, I’m going to spend the rest of my days here.” 

Ms. Chamberlain, a former dentist, says while her native Jamaica is more beautiful, it is not as peaceful as Ghana.

Currently, there are around 200 million people in the Americas identifying themselves as of African descent, according to the United Nations. Millions more live in other parts of the world, outside of the African continent, and in most cases they experience racism and discrimination.

To promote the respect for and protection of their human rights, the UN General Assembly proclaimed 2015–2024 as the “The International Decade for the People of African Descent”, to be marked annually on 25 March.

Right of Abode

Ghana, from whose shores the majority of 15 million Africans passed into slavery, has invited its descendants in the diaspora to return home.  The country has had a long history, from the days of its first president, Kwame Nkrumah, of encouraging the return of persons of African descent to help with the continent’s development.

In 2000, the country passed a law on the ‘Right of Abode’, which allows a person of African descent to apply and be granted the right to stay in Ghana indefinitely. And recently, the country set up a Diaspora Affairs Bureau under the foreign affairs ministry to provide a sustainable link between the Ghanaian diaspora and various government agencies to achieve development
and investment goals.   

Beyond laws

More needs to be done to make returning African brothers and sisters feel welcome back on the continent if Africa is to benefit from their return. Samuel Amankwah, the director of research at Ghana’s interior ministry, admits that the authorities need to engage more. “Those who left our shores are still our brothers and sisters,” he says, adding: “Offering Africans in the diaspora a right to abode in Ghana is a way of engaging for our common interest.”   

When the late televangelist Myles Munroe visited Ghana in 2012 and paid a courtesy call on President John Mahama, then a vice president, he encouraged people of African descent living in the diaspora to take advantage of Ghana’s Right of Abode law and reconnect with the African continent. 

Mixed feelings

Despite some initial setbacks, people of African descent continue to migrate to the continent, though not in the expected droves. And like Florindo Johnson, who just retired from Delta Airlines this January, says: it is important to encourage more blacks to come. 

Having flown in and out of Ghana for nine years, Ms. Johnson, a Caribbean who lived in Chicago, is retiring in Ghana to operate her six apartments in Prampram that she intends to rent out as holiday accommodations. “I really want black people to come and see for themselves. It is disheartening that a lot of black people don’t want to come because of what they’ve seen in the media, yet white people come.” 

 

Written by Efam Dovi  and Originally posted on: un.org/africarenewal 

Related: Africa could feed the world - if it overcomes these key challenges

Follow us on Twitter

Find Us on Facebook

ABN Gallery

ZooTemplate
ZooTemplate
ZooTemplate
ZooTemplate
ZooTemplate
ZooTemplate

Monthly Newsletter

Stay infomation on our lastest new, template and extension

Get in Touch

Location: For any request or enquiry, do send us an email on This email address is being protected from spambots. You need JavaScript enabled to view it. . Or connect with us on any of our social media platforms. Join the ABN Family.

Head Office: Graphic Road, South Industrial Area, Accra, Ghana

Head Phone: +233 (0)205-114-116

Top of Page