Tag Archives: Group economics

Procurement

The theme this time is the three pillars of procurement, Accountability, Capability and Transparency. This is a wide ranging perspective on black based crowdfunding campaigns and promotions. In the black sphere/network there are people who will ask you to donate to there projects but there is a lack of substance.

I have yet to see a person who is well known to black people who has shown accountability, showing they will accept the plaudits of success as well as the consequences of failing to deliver. There is an example with the numerous videos out there where some people are talking heads, saying this needs doing but that needs doing, when clearly they are not looking at a way to look forward and use their energy to make things happen.

Some talk a good game, but when delivering then they can be found wanting, one way this could be started would be to create a pilot project, prototype then when it is up and running, measure the failure or success the measure how capable you may be with the real thing. This will show how capable you are to deliver the final product you would like funding for.

Committing to the development of a project, campaign or promotion is one thing, showing them value for their money is another. Many of the black talking heads are not good at giving updates, and if there are updates not giving credible ones, which are very vague. If a project is to be transparent, having access to the plans (as far as possible – if confidentiality or data protection), a clear direction of where the project is going and open access to the project. Clearly, some black projects are closed off and so it can be disappointing if you have pledged financially to the cause.

Based on what is said if all three of these conditions are like this then a project is not worth investigating on, we all make mistakes even I did (and I apologised see the blog). Think before you put time, money and effort into someone’s campaign as they might just be trying to create a wave with no foundations behind it.

Black and Franchising

Often, along with gentrification there can be regeneration which was discussed in another blog I wrote. With this comes the ability to get finances and support to open businesses and to become economically, socially and politically visible.

Franchises are a way in which you can create a business income, which can lead to a growth in employment in the local area. In the UK there are a number of businesses which are franchises which black people go to such as Chicken cottage, Subway and Costa coffee. The latter is one which is sometimes visited by black people.

In the US I am sure there are many different types of franchises which you could open in the local area as a way to get your first business. Other groups of people are able to open these franchises with the assistance of their fellow nationals (by grouping their resources together).

This is a way in which you can take advantage of local regeneration as new buildings are being built and possibly office and residential blocks, with some shops and services needed in the local area. If you know the type of business’s franchises you would like to buy into then why not.

The way you can get finance is possible through grants, loans and different schemes and often, finance can be more easier to secure for a franchise than for a independent business but you would need to have start up capital and collateral, which is where the group comes in (group economics).

If you are interested in a franchise then there are many things to consider such as:

  • Long term contract
  • Run the business in a uniform way set by the brand not you
  • Devoting all your time to it
  • Having some capital as collateral and start up cash and more

 

Further Resources

10 Franchise Considerations (www.entrepreneur.com) 

Costs of a Franchise (www.franchising.com)

Introduction to Franchising (www.startup.co.uk)

11 Steps to Franchising (www.franchisedirect.com)

Starting a Franchise (www.fitsmallbusiness.com)

Crowd – Gifting

There has been much emphasis on crowdfunding though there should be a view point towards people crowd gifting. I will explain further, suppose people were to donate items to persons who are seeking funds to raise for a venture.

This would occur by providing them with items which you do not want and listing through Ebay or a second hand selling site, you would then be able to take the proceeds from the sale after the item has been sold.

This would mean you could donate to a campaign if you did not have the funds by selling an item and pledging the proceeds to the campaign.

My viewpoint came from my experiences of giving to charities in the UK, where I often donate books and DVD etc to charity shops as I just cannot be bothered to sell them online and besides some of the smaller charities do some good work and I am very supportive of local charities who do good community work, I also buy many books and redonate them once I have finished.

There are online services online which can allow you to donate items and they will take the proceeds and pass them on to the charity/thrift organisation you would want the items to go to.

As stated above there are other ways in which you can ensure your funds go to another party, this could be through arranging with the individual or group recieving the funds that you will pledge the value of the item if it is sold.

There are things which can be looked at to see how and if it can work, at least it is something to think about.

Considerations:

  • Whether or not an agreement can be made to accept donations in this manner.
  • The items donated for sale may not sell.
  • To get the funds will require much effort as going to a charity/thrift shop as you will need to post and package the item to the sellar.
  • Unknown value of the item until sold.
  • Difficult to get a standard price of all items as most venutres will be for business, rather than charitable.

The Benefit:

  • More donations as many people will have items to sell.
  • Very Accessible to those with little funds but many items
  • Pledges do not have to be made until the item is sold and the value from that item gained.
  • More access to others who might have a passing interest rather than a full interest.
  • Takes dedication and interest in the campaign and the projects of the person/group asking for the donation.
  • This could be a way of asking businesses and organisations if they have any old stock which they can donate to sell for the cause/project you have.

Further information:

Selling for Charity (Ebay)

Audio And Visual Plugging

Remembering back to the late 80’s and the early 90’s when
I would listen to pirate radio stations which would play
reggae and black music. These were ways in which black
people could play their music on the UK as the costs to
get a radio mast would be huge and for a Licence to play
songs this would be large too.

The radio stations still exist (on Analogue radio and as
internet radio stations) today in towns and cities across
the UK with a Afrocaibbean population. This is because we
originally created them to play our songs and music,
which would not be played on mainstream radio. Despite
them being illegal, many reggae artists do shout outs to
these radio stations, as they are channels which can be used to
bring more awareness of their music and songs.

The thing which these radio stations did which many of
the black people who talk about enlighted matters dont do
is promote local black owned businesses. As a kid when
recording these stations annoyance would set in as the
adverts would play but as a more enlightened adult I like
and understand the need for these adverts.

This links into the point of view that the enlightened
persons who provide information for black people should
have adverts on their audio and video posts for
businesses which are local or regional to them and some
of their following.

This will be useful to those with a large following and
the advertising would be for businesses which are
relevant to the demographic of the audience. On pirate
radio local black businesses advertise and you begin to
find out which businesses exist in that town or city and
also what events are going on locally and regionally.

As well as being able to provide opinions and information
you may also provide information on local businesses on
your videos and radio shows. The finer details in terms
of economic details for both parties are to be discussed
between yourselves.

Local Community Sponsorship and Business Growth

Recently, I have been working with a black local community organisation and they are sponsored by a black themed business which is not owned by black people.

Initially I thought this was a bad idea but it made me realise that there are very few businesses in the UK, which have established themselves to a point where they can provide a great amount of funding to such a prevalent cause which affects black people in the UK.

It is a case of black people in the UK looking at themselves especially those who have run or are running businesses. I myself will look to be accountable to this also. If we build a business we should be able to generate income over a number of years to be able to expand into a chain which this business is and make it applicable to different audiences.

Even in the case of black companies making a great amount, very few will likely put their tax breaks or donate some finances to causes such as this one as they are worried of being too black or too affiliated with a cause that affects their own people. Some black businesses may not be interested in funding a community cause unless it is a international or universal cause.

In the UK black people have been here anything between 70 and 40 years and we should be looking at having chains of shops and services, rather than having small businesses which cannot support community needs.

If we are to develop stronger businesses amongst our smaller communities in the UK, we can look at different creating networks of businesses and liaise with community groups and organisations on how they can work together in a partnership where both parties get something out of the agreement.

This will mean organisations like the one I am currently working with will be self-sufficient and will be able to remain exclusively black rather than relying totally on public funding and can do what they set out to do with businesses having a similar ideology supporting and providing resources to make this happen.

Social Economics

You may have heard much talk about creating your own economy. In Africa, even today, we have an economy based on the exchange of goods in rural and some town areas. Rather than the exchange of goods for money.

The most popular version of this is the exchange of a wife for a douri, i.e. where a man would give 10 or more cows or livestock in exchange for a mans daughter. This is designed to show respect and demonstrate your intentions for their daughter.

After being in South Africa, I learnt this was for the man to show the father of the bride to see how the man has nurtured and maintained the live stock as these qualities are required to take care of his daughter.

In regards to markets and trading traditionally, we (as Africans) have not always used coins in exchange for goods. It has been items in exchange for items and if we do not have a item which is the exact price of the item then we negotiate i.e barter to get a price which both parties will settle for.

There has been talk of black people, especially in America taking up this type of economy for items as some whites are beginning to do this. Looking from a UK example there has been attempts to do this but there is a downside.

This being mainly middle class and affluent people who have the security of money to do this can do it, whilst bills and utilities cannot be p0aid for with batering or through a social economy – reciprication.

There is also the possibility of developing a underground market where people can be exploited so someone will exchange labour or favours for goods and there will be no definate time or point where this will be repaid.

Despite these reservations a social economy could work but it would be more beneficial in Africa where we belong rather than in the west as, we do not have the infrastructure to fully take advantage of such a economy in the US or where ever black people are outside of Africa.

(Image Source:

https://jaunehibiscus.wordpress.com/2010/06/29/african-print-and-pagne-cheap-or-cheap/)

Direct Black Investment

This is related to the discussions which are taking place today, where there is a lack of black owned businesses today. So you ask, what is direct black investment, in the regeneration world this would be the same as direct foreign investment from multinational companies, rather from people who live in the city or country where the investment is required.

The investment is linked to the skill level in the community, for example the government in the UK ensured all the young people were trained up to meet the needs of these companies which were being attracted to the town or city. This was not a total success as investment from outside sources tend to provide some benefits to the local area but tend to employ their own nationals.

Considering gentrification there is investment in black areas but the investment is from people who are likely not to employ black people or the token person. This supports my argument for direct black investment, black people are likely to employ other black people if we live in the area rather people from outside the community and there is a likelihood of the area due to money staying the the community being improved physically, socially and politically.

How would this be developed, starting by looking at the skills which are available in the area, this is fertile ground as there will be many black people with a diversity of skills, who would be looking for a diverse number of roles. There would also be a business need such as grocery shops, cosmetics, repair shops, launderettes etc….

There is a potential to start such businesses, there may be a lack of external finance, but maybe creating financial cooperatives, black people putting their money together in a fund, creating a credit union and setting up one business then using the profits to then create another business if there is not one benefactor may be a way of starting a business.

The downsides of this may be there is a lack of support or benefactors available and a lack of appetite.

Below is an example of a simple idea I had:

There was a building in the town I grew up in and it was for sale, I was thinking there was a way in which this could be purchased as it is owned by the local authority but it was possibly going to be purchased by Asian people, who would then rent it back out to our own people. I had worked out a proposal for the building to be purchased, whereby:

  • 55% of the building would be funded by businesses

  • 45% of the building would be paid for by the local community (minimal donation of £ per year)

This would mean the building would be owned by the black people, this building is used at least 30 weeks of the year and can be used to host other community events, to generate revenue for the upkeep and costs of the building.

This was not met with much interest and the building was taken off the market so it is still owned by the towns council.

My point is why have outside investment, and rent the building, when even in the short example, there can be an opportunity to own and control the community space and provide activities and events for the benefit of the community, with our own investment.

The need for direct black investment is important, a blog I wrote (Black Local Innovation) looks at the ways in which money and skills staying inside the black community could be a way in which we can develop our communities.

Please see the sources below which expand on this.

Direct Foreign Investement Definition (Wikipedia)

High streets in trouble as big names go bust (theday.com)

Example of British High Street being deserted

Detroits development from direct black investement