E20 Model: How Youth With Little Capital Can Start up A Medium Enterprise With 20 Employees (3)

In my first and second post, I introduced and discussed the application of my E20 model. I also stated how a youth lacking capital can start up a solid business which can possibly employ 20 people from the first launch. Now I will explain how this business goes, following this model. 

The fundamental principle of this model, as I established in previous posts, is team work. Teamwork is essential for the success of the business applying this model. Teamwork is defined as the "work done by several associates with each doing a part but all subordinating personal prominence to the efficiency of the whole" In the case of, say, a fashion business, the 5 million naira will be invested in renting outlet, sourcing of material, training of the members in the making of clothes and other expenses. 

Among the 20 owner-employees, one person serves as the CEO, another as the marketing manager, another as the operations manager, another as the purchasing manager etc. Those who are very good at clothe making will take up those duties. The position does not make any member more important than others, and the earnings are equal. Only certain traveling, housing or entertainment allowances will be provided for those occupying certain positions. Basically, the general pay is equal. 

There could be a special case, whereby the capital sourcing among members may not be equal. In this case, few members might bring more funds than others, then the earning ratio will reflect this. And members doing significantly more difficult works have to be specially compensated. It only needs consensus. 

Such business applying this ratio could have a timeline, say exist for ten years, until all have accumulated enough capital, exposure and confidence to strike it alone. Or it could also be a life business, as the members join hands to grow the business and diversify their business interests. It depends on their initial arrangements. 

Foundations, charities and NGOs, honestly seeking to eradicate poverty in Africa can capitalize on this model to help the youths. The assistance could be in the form of management and job training, financial audit, funding and sponsorship as well as educations.

Already, an innovative organisation known as Africa Regenerate, which is a platform for young educated Africans under the age of forty, where they seek creative and entrepreneurial solutions to the poverty issues in Africa, is already using this model. This organisation whose Facebook page is facebook.com/AfricaRegenerate, provides management training, sources for funds and provides free auditing for young African entrepreneurs through the application of the E20 model. 

The E20 model has the capacity to create massive employment and wealth in Africa within a short time frame. It is a simple but highly effective model. I sincerely hope you will employ this model and create your dream of establishing a solid business, even without capital. The E20 model can be applied in any industry and in any business of any size - small, medium and large scale. 

It is particularly effective in collectivist societies like African and Asian countries where people are can achieve their individual goals by working towards the communal goals. In these societies, group success is usually better than individual success. To see it in action, join Africa Regenerate on Facebook at facebook.com/AfricaRegenerate. 

THE END

E20 model: How youth with little capital can start up a medium enterprise with 20 employees (2)

In my last post, I established that the major cause of youth poverty in Africa is not unemployment, rather it is under-employment. My E20 model, therefore, builds on the premise that these youths are poor but not penniless, lacked opportunities, but do not lack ideas. They are therefore willing, like other entrepreneurs around the world, to start up their own businesses. Only, they don't have enough capital, to give wings to their dreams and let it fly. Here is my model on how to solve the issue of finding seed capital.

I call this E20 model. The "E" stands for 'Ezeokeke", my surname. The "20" stands for the possible number of people a business applying this model can employ from the start. The E20 model is therefore a model which enables potential entrepreneurs lacking capital to unite their resources and talents and most importantly their goals, and work together towards achieving their combined objective. This way each individual achieves his or her goal within the corporate goal. In sum, the outcome is the sum total of the goals of the participating individuals. 

The fundamental principle of this model is that large number of people unite their little money to form the huge capital necessary in starting up a medium enterprise. These investors themselves are the owners of the business and they themselves work in this business. At the end of the month or year, they share a percentage of the profit in the form of salaries among themselves. This model solves two major problems: it removes the difficulty of obtaining seed capital and it provides job to numerous amount of people. 

An example is necessary to drive the model home. To start a medium business in Nigeria such as a fashion designing business, rice farming, IT and others, one needs at least 5 million naira (about US$ 31,152). A young Nigerian graduate hoping to go into business cannot afford this. But he or she can afford 250, 000 naira (US$1,556.86). 

In the case of Nigeria, this young graduate could obtain this 250,000 naira through savings from pocket money, savings from NYSC allowances, loans and gifts from family and friends and rewards for doing menial jobs. The main point here is that the future entrepreneur, if she is willing to put in the time and commitment with total discipline, can come up with this amount, no matter the timeline. 

The second aspect is that of team work. This aspiring entrepreneur must seek out like-minded people- willing to start up a similar business, lacking money but willing to come up with this minimal sum, and willing to work in a team towards achieving his dream. The aspiring entrepreneur has to look out for these other people with whom to share ideas and raise the total amount needed as the business's initial capital. It would be a form of the Master Mind Group advocated by Andrew Carnegie. 

This group could include up to twenty members who will be starting up similar businesses. They must brainstorm together and share ideas on how their businesses would go. And most importantly, they will be willing to start up a similar business, decide a particular location and agree on roles and responsibilities to played by each member of the group.

The important principles and fundamentals of this model and together with its limitations and how to go about them are discussed in three above. Also, how charities, foundations and private individuals looking to help African youths economically can apply this model in doing highest and more sustainable good in Africa will be discussed in 3 above. 

(To be continued)

E20 Model: How youth with little capital can start up a medium enterprise with 20 employees

All across the world, developed and developing, there are issues of unemployment, especially among youths. In developing countries, particularly in Sub-Saharan Africa, where illiteracy and structural poverty holds sway, unemployment turns itself into a hydra-headed monster fueling crimes, inter-tribal conflict, terrorism, militancy and worst of them all, brain drain. The only educated few are forced to migrate to other parts of the world, dashing any possible sense of hope for the future.

The good news is that many youths in these countries are currently jilting the usual 9-5 jobs in a bid to build their dreams through entrepreneurship. But the bad news has always been that they do not have enough capital or the connection to obtain such start-up capital. As Africa has few venture capital firms and angels, it's been near impossible for youths to obtain the seed capital necessary for starting up and monetizing their best ideas.

In a bid to solve this problem of obtaining seed capital for African youths desiring to open up businesses, I developed the E20 Model. This model is based on the premise that the youths of Africa are poor, but not penniless. It builds on the fact that the major income problem is not caused by unemployment per se, rather it's under-employment. Unemployment means simply that one has no source of income. On the other hand, under-employment means that one earns less than one is worth or one deserves. This is more of the case among African youths who work in firms where they receive meager salaries, engage in self-employment or odd jobs where they also receive meager financial rewards.

Again, fresh graduates who have no savings from their pocket money can also obtain the littlest amounts from family and friends. This means that these youths have some money, though this money alone cannot take such a person to anywhere in terms of starting up a business or even living a comfortable life. This model therefore aims to enable these youths use this little money they have and build a medium business which will employ up to twenty people in any economy.
This model solves that financial limitation through leverage and enables people achieve their goals in a united approach.

(Continues in 2 above).

Africa Loses As the War on drugs Rages

Former U.S. president, Richard Nixon introduced the Comprehensive Drug Abuse Prevention and Control Act of 1970 in a bid to fight drug trafficking and its usage.  The countries of the world borrowed a leaf and the global war on drugs ensured. 

By 2013, US$ 1 trillion spent, millions of people languishing in prisons and death rows, some having paid the ultimate price, and 230 million people still cracking the stuff, many think the war on drugs has to take another approach. Charismatic entrepreneur and Virgin Group founder, Richard Branson believes the war on drugs must change from prohibitive to rehabilitative. He spoke to Time: 

"It’s torn countries in South America apart. It’s caused complete misery from the top of society right throughout. It’s almost turned some countries into lawless countries, in the same way that prohibition of alcohol did in America with Al Capone and all the misery that went on during prohibition"

 An African proverb says that a person protects where he lives. So I'm going to discuss the negative effects the war on drugs has on Africa. In Nigeria, a governmental agency, Nigerian Drug Law Enforcement Agency  arrests and prosecutes hundreds of Nigerian youths annually on account of drug trafficking and drug usages. Most of these youths spend years behind bars. 

These, Richard Branson says, has no impact in reducing the level of drug usage and crimes. Instead, it makes youths associate drugs to coming of age and to attach a sense of "gangster" to it. This increasingly makes youths, craving rebellion, to turn towards drugs. 

With increasing poverty level in Africa, many youths are lured into drug trafficking where quick money is made. If drug was legalized and taxed like alcohol, there would be no need for it to be smuggled and trafficked. There would be less need to make quick money smuggling it. I can say that drug trafficking and drug consumption go together, because in economics there is a correlation between supply and demand. 

Africans trafficking drugs usually end in jails across the world. In countries, like Malaysia, Singapore and China where drug trafficking carries death penalty, they pay the ultimate price. Nigeria's Foreign Minister, Ambassador Olugbenga Ashiru, says that there are 1,773 Nigerians serving jail sentences across Asia, with 31 on death rows in Malaysia and Indonesia, mostly for drug-related offences. 

These are youths in the prime of their lives. The years at which they are the most productive are being wasted behind bars.  As youths with potentials are incarcerated, and some even executed, Africa loses from the force of man-power and fresh ideas they would have injected in developing African economies. 

The Nigerian Foreign Minister has a word of advice for the would-be drug traffickers on This Day Live.

“Nigerians need to be fully aware of the grave consequences of their actions. They also need to know that with the introduction of sophisticated detection technology, the chances of discovery of drugs hidden anywhere is very high. So, my message to our compatriots is simple: please, do not carry drugs, you will be apprehended.”

However, I believe that governments should treat drugs like they do alcohol and cigarettes.  In the words of Richard Branson, they should "regulate it. Tax it, Use those taxes to help with health issues, to help with education". 
This way millions of African youths will be saved from imprisonment and premature deaths. This will spare more youthful energies to be injected in building the African, and to a larger extent, the global economy. 

THE JOURNEY AHEAD (A POEM)

I remember when I was young,

Nothing did I do but played and  ate.

Gathering we always had a song,

And scuttled around under the sleet.

At the wall geckos we threw mold sand,

and were elated when one landed.

The nights then seemed long,

Since I slept uncomfortably on a seat.

I accepted it though, because I was young,

And for that mum gave me meat.

She took me by, holding my hand;

If there was an occasion to attend.

Hardly did I know it would not be long,

For I have to achieve my own feat,

As none would wish for my being forever young.

Having me by his side on a seat;

"Your destiny", dad always said,

"Lies in your hand".

I now see myself as a thong,

Being purged by the heat.

For this future that to me seemed long,

Soonest i will meet.

I therefore must have myself well armed,

For uneasy lies the journey ahead.

Drugs and Scams: Has the Nigerian Society Betrayed its Youths? (2)

What role does the Nigerian society play in creating discontentment among its people, such that they are forced into crimes to amass wealth. I have read several cases where parents cajole their children into crimes due to the treatment meted out to such children. 

There are instances where parents tell sons to build them a bigger house when they are aware the son's financial capability won't afford a new property. Failure to do that the son enters in the bad book of the parents, loses his respect, becomes a backstabber who doesn't care about the shame his parents go through living in an old house. Some even get ejected from the house (if they still lived with their parents). 

Apart from parents, the society in general has a penchant for worshiping wealth. Either a learned behavior owing to years of battling with abject poverty or illiteracy, it's also one of our major problems, people tend to praise young men who come about sudden wealth, without any obvious source. 

Such people are given special seats in the church, invited to church fund raising events and offered traditional titles in their communities. Such glorification of ill-gotten wealth, I believe, serves as a spur, urging youths to acquire more of such wealth. Erosion of traditional virtues of honesty and integrity which had been embedded in the cultures of various ethnic nationalities making up Nigeria by overly westernization has a role to play as well. 

As the churches shift away from preaching salvation and towards exhortation for wealth acquisition, most youths engage in crimes believing they have God's imprimatur. Nigerians who travel abroad to study have relatives back home asking when they are sending home that Lamborghini or Ferrari. Such Nigerians, not ready to face the shame of being called a lose upon getting home, engages in crime to find money to buy cars and build houses at home. 

Most criminals do the crime to please others. So the society has a role to play. As usual, I will end by asking the question again. Hopefully, another reader will give me a fiery response like my friend did above. Therefore I ask. Drugs and Scams: Has the Nigerian Society Betrayed its Youths? 

Drugs and Scams: Has the Nigerian Society Betrayed its Youths? (1)

In my previous blog, I explored possible reasons Nigerian youths are increasingly engaging in drug trafficking and in scams, whether internet, romance fraud, identity fraud or outright scam. I opined that abject poverty, which ravages the country, is the major reason for this scam. But my friend begged to differ with my view. 

"My own opinion is that most Nigerians are always conscious of money", she wrote me. Then she thundered on, "we would always blame poverty for every selfish act of individuals who are so greedy and lazy to labour for their own money". She was right. Because she's a twenty-one year old female. And she's working, making her own money. To show me that most Nigerians engage in crimes out of sheer greed and not due to lack of choice, she told a true story. 

"I read a story of a woman who operates a big restaurant that suddenly ran mad after confessing how she uses water from corpses to prepare her meals, just to attract customers and then seize their destinies and fortunes, all because of money". This was somehow funny. But it's a common occurrence in a country where most  strongly believe in witchcraft and  superstition. And whether she was saying the truth? In the affirmative. 

Then she gave her answer to the question I asked in my last blog - Drugs and Scams: Are Nigerians Guilty or Not Guilty?  According to my fiery friend, "It's obvious that drug peddlers are not actually poor individuals but people that are not contented with what they have".  And she was somehow right. Most drug peddlers are not first timers. These are people who have made hundreds of thousands of dollars in the business. Most scammers are not poor too. Scam needs investment and seed capital, just like other legitimate businesses. And these fraudsters and scammers are able to source for these capitals. How about investing them legitimately? 

To scam, a lot of preparations and plans have to go into it. It includes bribing security officials and financial institutions. It involves paying people of various nationals to act as either a colleague, a brother, a satisfied customer, a courier agent or even a business partner. So a mega scam requires mega capital and investments. And these Nigerians are able to foot that. 

They don't easily strike an objective observer as people suffering gruesome poverty. So are they guilty or not guilty? My friend minced no words. "Nigerians are guilty of every single act of corruption you can think of". Seriously, I can think of many: rape, terrorism, kidnapping, militancy, armed robbery, fraud, scam, assassination, prostitution, embezzlement etc. 

However, studies show that Nigerians have not always been that way. And as Nigerian Minister of Finance and the Coordinating  Minister for the Economy, Ngozi Okonjo-Iweala puts it: 99.9 percent of Nigerians are honest, hard working citizens who just want to get of with their lives. The former World Bank executive had told Christina Amanpour of CNN. 

This means that only 0.01 percent of Nigerians engage in crimes. Is she right? Definitely. She is. My friend above is a Nigerian. I'm a Nigerian too. And thousands of Nigerian youths I have met personally are angry and fed up with the negative publicity their nation gets and the biased treatments they receive at every airport and public places abroad on account of crimes committed by few compatriots. 
Nigeria's Finance Minister stated that her government is working hard to provide a better life for all Nigerians. And do Nigerian youths have a choice other than crimes? My lady friend (not the Minister, but the one above) fired in, "Yea (sic)there are many choices for (the) youths". And in her characteristic Nigerian swagger, she added. "That is if they are eager to find the way". It's true that poverty lives side by side with humans in Nigeria. It's true too that the Nigerian youth has few choices to make a legitimate earning. But should they engage in crime? No. Most Nigerians are against crime. Most Nigerians put food on their tables sans crime.

Owing that most Nigerians who go the crime way are not entirely poor, but overly greedy, as established above. What is the fundamental source of this greed? I, personally, like getting to the root of issues. I do not subscribe to cosmetic approach to issues where solution is concentrated on the effect and not on the cause. One reason I believe the war on drugs is a complete waste of human and financial resources. But I have digressed. Let's get back to business.

(To be continued)