The Benefits of Microfinance India

The microfinance industry in India is growing by the day. According to one recent study by Intellecap, the 60 largest microfinance institutions in India have 10 million clients. That’s 10 million of the working poor who have been given small loans that allow them to pull themselves and their family out of poverty.

Microfinance loans are aimed at empowering the impoverished, mostly women, to start their own businesses and to grow their money so they can achieve long-term financial independence. That’s why this concept carries many advantages over typical philanthropic endeavors.

Here are just a few of the benefits of microfinance India.

• It isn’t a hand out-As mentioned earlier, microfinance isn’t about just giving out money to the poor. On the contrary, these are small loans that are paid back with interest. Of course, many people are skeptical when it comes to giving the poor financial loans. However, they are surprised to learn that of the over 100 million microfinance loans that have been given out, 97% of them have been repaid. That’s why you can’t consider microfinance a hand out, but rather, it’s a hand up.

• It allows the poor to receive a loan–Traditionally, the poor have been unable to receive loans. That’s because they don’t have anything to offer as collateral. As a result, they get stuck in a vicious cycle of poverty, living and working in poor, rural areas. Should adversity strike, they simply don’t have the means to combat it. Microfinance allows the poor to get the loans they need to save, invest, and create a sustainable lifestyle of financial independence and growth. These loans are used productively by the poor to create their own businesses, grow their assets, and get out of poverty once and for all.

• It empowers women-Many efforts of the microfinance industry are aimed at empowering women to create their own businesses. From microfinance India to microfinance in other developing countries, small loans are given to those women who live on less than $1 per day. By giving these poor women loans, the microfinance industry not only helps them pull themselves out of poverty, but it also promotes gender equality throughout the world.

• It creates long-term financial independence-The most important benefit of microfinance in India is that it helps create long-term financial independence in these poverty-stricken areas. See, it’s one thing to send money, clothes, and other goods to the poor. It’s a great gesture, but the results of this traditional style of charity are short-lived. Microfinance loans help create sustained impact by educating recipients on how to create their own businesses and how to properly manage and grow their money.

Microfinance in India and several other countries received a major boost recently thanks to Lingerie Miami. Created by Renata Black, Lingerie Miami is a philanthropic brand that raises money for microfinance institutions through the use of fashion shows. The concept has been very successful, and it’s spreading to New York and other major cities throughout the world.

Source by Renata Black

Business Ethics: A Quiz with Many Right Answers

You can find various business ethics quizzes around thPick the one answer you think is wrong. This one is different. Each question has only one WRONG answer, doesn’t analyze your answers and tell you where you went wrong. Rather, it is simply intended to raise your ethical consciousness, maybe even stimulate a little discussion between you and your peers or family.

In this quiz, try to pick the answer that is wrong. I hope the “wrong” answers are obvious if you care about business ethics.


1. My reputation
a. Is only as good as my word
b. Precedes me
c. Once lost is hard to regain
d. Is the legacy I’ll leave behind
e. Doesn’t matter to me.

2. Following my employer’s Code of Ethics
a. Could be important to my success
b. Requires interpretation to get it right
c. Will make me a better leader
d. Is a waste of time
e. Requires a certain level of consciousness and some attention to detail

3. Pointing out ethical transgressions at work
a. Can be awkward
b. Helps raise awareness for us all
c. Is a career ending move
d. Can backfire
e. Could be educational all the way around

4. Keeping the workplace ethical
a. Makes it a better place to work
b. Is hopeless
c. Requires clarity around ethical standards
d. Means top management has to do it
e. Leads to a more profitable company

5. My employer’s ethical reputation
a. Is in the dumps and dropping
b. Reflects on me
c. Is partially set by how I behave
d. Makes a difference in the bottom line
e. To some extent determines whether people will buy our products

6. Accepting gifts from vendors
a. May be fine within limits
b. Should under no conditions affect my willingness to buy from them
c. Has stricter rules in the US than is some other countries
d. Is a great idea to get as much as you can!
e. Should probably be disclosed to the ethics office, particularly if it is valued at over a certain amount

7. I care about business ethics because
a. America’s reputation has suffered recently
b. Good business ethics can restore better profits
c. I don’t want to work somewhere slimy
d. Good business ethics creates a more just workplace
e. They substitute for my complete lack of business ethics.

The wrong answers would likely come from someone who is apathetic and/or cynical. Sometimes, we do feel either of those feelings. However, life is short and the well-lived life is a life of integrity. Living a life of integrity means caring about business ethics.

If you enjoyed taking this quiz, share it with your friends. If you work in an office that cares about ethics, share it at the next staff meeting. Leave it in the lunch room. Pick the one question that you like most and talk about it over beers this weekend. On your commute home, think about what you want to do differently going forward. Send the quiz anonymously to your boss. Keep the discussion going about the importance of ethics in business!

Copyright by Sally Rhys of Coaching for Perspective, July 2008

Source by Sally Rhys

Mark Twain – Financial Troubles and Recovery

Samuel Langhorne Clemens, also known as Mark Twain, was born in Florida on 30th November 1835. Out of seven children, he was the sixth one. He is not only known for his writing but also was a famous journalist and humor. He is known to produce magical writing which attracted worldwide audience and earned him as being a famous writer. Till today Twain is remember greatly and his work read by many.

Twain made a lot of money through his writings. Some of his famous workings were The Gilded Age, Life on the Mississippi, The Adventures of Tom Sawyer, A Tramp Abroad, The Prince and the Pauper, A Connecticut Yankee in King Arthur’s Court, and Huckleberry Finn. A large portion of this money was lost due to bad investments. These investments were mainly due to investments in new technologies especially the Paige typesetting machine. It was an engineered mechanical device that was known to amaze the viewers when working. The problem with this device was that it was prone to a lot of breakdowns and so Mark Twain spent a huge sum of $300,000 on the device. Before the device was perfected, the device was replaced by Linotype in the market. Due to this, Mark Twain lost a huge portion of profits made by his books as well as large portion of money inherited from his wife Livy.

Mark Twain was very much fascinated with the science. He developed strong friendship with Nikola Tesla. He along with Tesla spent a lot of time in Tesla’s laboratory. Twain is said to have invented a new steam engine type, Kaolatype and infants bed clamp.

Another source of Twain’s financial trouble was publishing house. He also lost a huge portion of money through the publishing house. The publishing house enjoyed a lot of initial success by selling Ulysses S. Grant memories. Soon after this initial success, the publishing house broke and lost a lot of money. This was because of the idea that similar to selling memories of Ulysses S. Grant. It was thought that the public would now be interested and buy the biography of Pope Leo XIII. The idea was back fired and only less than hundreds copies sold.

To recover financially, Mark Twain started delivering lectures along with his writings. Along with his new friend he recovered financially. The lost lasting friendship in 1893 with Henry Huttleston Rogers, a financier, who was the Standard Oil’s principal. The recovery process began with Henry asking Twain to file for the bankruptcy. After this he asked Twain to his written works’ copyrights to his wife. This prevented the creditors from getting possession of his works. Then, Rogers went on to take charge of Twain’s money completely till all creditors were paid.

Finally, to completely pay off all creditors, Twain went on to deliver lectures worldwide, despite the fact that Twain was not under any legal obligations. In 1900, Twain then returned back to America after he had earned enough for paying off his financial debts.

Source by Dennis Yew

Get more lucrative Finance jobs in India

Finance jobs are one of the most comfortable and most lucrative jobs in India. With the 15-20% growth rate per annum, Finance jobs in India have become even more demanding. They offer mouth watering packages with great perks and TA-DA facilities also. All those from a management background can also go for these jobs. All you need to do is to be regular in searching these jobs and also applying at various places. For a good job you can also go for the various short term courses like Insurance Management courses offered by several renowned institutes all over the country. This course helps you in getting a clear idea about the Finance sector and grab better positions in any company in the finance sector or insurance company etc.

Till where it’s about the finance sector, companies are ruling the market not only till the national level but at international level also. Many big companies, who have their roots in various retail and textile sector, are now spreading them in the finance sector also. They have made it easier to find jobs in India. There are various positions that you can go for like, Insurance Advisor, Insurance associate, back office support, Sales development Manager and many more. You can also search for various Finance jobs in India via internet also. There are countless classified ads that come in the newspapers and internet daily.

The easiest way to go for these jobs is to first send your resume to the companies and stay regular in going for the interviews. In today’s time it is best to go for these jobs through internet. There are countless online search engines that allow you to go for various finance jobs in India matching your job profile and preferences. They create a direct link between you and the various companies. In todays time all those who are from a management background, finance sector are of great benefit for them. A combination of finance job and business skills helps you in understanding the organizational goals and functioning of the Finance company, through which you can achieve big heights in your career.

Source by John Winstons

How Mba In Finance Helps Us In Career Growth

Well, MBA degree holds a lot of potential in itself. No matter whether you are from media or finance, infrastructure or IT industry, if you don’t have the MBA degree you are certainly not welcomed at any higher position. Want to know why? High position in any field means a lot of responsibility, leadership quality, managerial intellect and strategic skills. During the entire course of MBA, you are well rehearsed with each of these qualities. That’s the reason that you come in high demand once you have a MBA degree in your hand.

Benefits of MBA

Though there are a lot many business courses available all over India but, doing MBA in finance can be beneficial in many ways. Want to know how, just have a look below:

Advancing Career: It helps you to understand business and finance terms to deal with people and how to react with in organization.

Developing your business expertise: An MBA is a very versatile degree and it gives you business knowledge and adds value to your finance dealing expertise.

Starting your own Business: Once you have MBA degree you got the sense how to run business and such habit helps you to open your own business. You can get success in your business and you can provide employment too.

Salary Hikes: The growth hikes a lot in every sector per year. So, even you get a hike on your salary in every six months or an year as per the company’s norms.

Career growth in MBA in finance: Students who have MBA degree in finance can make their career in finance sector and can hold these positions –

Risk and Insurance Managers

Management Consultants

Investment Bankers

Chief Financial Officers

Treasurers and Finance Officers

Cash Managers

Financial Managers or Financial Analysts

Accounting Managers

Corporate Controllers

Investment Sales Associates and Traders

Credit Managers and Specialists

Investment Banking Associates

MBA has a lot of scope and course so, you are not left with a limited choice for this. You can choice any area of your interest whenever you are doing MBA. Let’s take MBA in finance for instance! A lucrative field to go with, well- paid career and money- spinning benefits, all these can be easily associate with this very degree. Once you get a career in financial sector after doing MBA in finance, you can easily approach the top notch companies and get a desirable career growth in the respective field. Believe it or not, you can even earn a minimum amount of 6 lac per annum, just within the initial years of your career.

Source by Kapil Verma

Finance Careers: Investment Banking Associate

As second-year MBA students chatter at cocktail parties, one of the major topics of discussion is who landed investment banking offers. Although the reputation of investment banking has taken a beating following the 2008 financial crisis, corporate finance jobs are still an incredible way to gain valuable business experience and earn a handsome paycheck.

Since the financial crisis, many perceive investment banking to have changed forever, and in many ways, it has. But there will still be IPOs, mergers and leveraged buyouts and a need to raise capital to grow businesses, and that means there will be jobs for those who have what it takes to succeed in corporate finance.

For the MBA, the typical entry job into the corporate finance department is an associate position. It’s a demanding slot, but it’s one rung above an analyst position, pays well and leads to great client exposure and business experience. So what will it take for an MBA to secure an associate position?

From B-School to I-Banking

Yes, corporate finance looks for bright individuals who can clearly articulate business insights and who will dazzle clients with social skills. But at the associate level, investment banks are also looking for MBAs that have strong finance experience and are driven and disciplined.

In terms of experience, bankers are ideally looking for candidates with previous corporate finance experience. Such experience could be a pre-MBA stint as an analyst or a summer internship with an investment bank. Firms also tend to value candidates with Big Four accounting experience, commercial banking experience or other positions that require significant exposure to finance and accounting.

Similar to the analyst hiring process, interviews for associate positions can be intense, and the ante is upped for candidates who have completed graduate programs and will be expected to work more closely with clients. Associate candidates should put in several hours of practice interviews and be prepared for all sorts of questions. For those who have already gone through the interview process as an analyst, the interview won’t be as intimidating (otherwise, get ready!).

Interviews may involve several rounds, culminating in a “super Saturday” round in which the top candidates meet with all the bankers at the firm for another round of interviews and socializing — giving the firm an opportunity to see which candidates are the best cultural fit.

As with most interviews, candidates must be prepared to impress the firm with their intellect and skills, but more importantly, they must prove that they are a likeable person that will work well with the firm’s employees. For candidates who receive offers, it’s time to get ready for life as an investment banking associate.

The Corporate Finance Quarterback

There’s a good reason why associates earn a healthy salary and a large bonus each year. In short, they are the quarterbacks of the corporate finance office. They may have analysts to whom they can assign projects, but they have to juggle multiple projects from multiple bankers with complicated schedules. Managing the analysts is no easy task either, as each of them are pushed to the max with their project workloads.

Like analysts, associates may start their day at 8 am and not finish it until 1 or 2am — and sometimes may not go home at all. They come in on the weekend to stay on top of projects and ensure that documents and presentations are completed with enough time for thorough editing. Associates usually put in as much time as analysts — often 80 to 100 hours a week at New York firms or 60 to 80 hours at firms off of Wall Street.

The Deal Cycle

Associates play a key operational role in the deal cycle of the corporate finance department. In the deal cycle, investment bankers — the vice presidents and managing directors — will either approach or be approached by companies with ideas for potential transactions. These deals may include IPOs, follow-on offerings, private placements, mergers and acquisitions.

Bankers will set up a meeting with the company called a pitch, in which they pitch the services of the firm to the company and present their analysis of the feasibility of the potential transaction.

At the pitch, the bankers will present the potential client with a pitch book — usually a hard-copy PowerPoint presentation that describes the credentials of the bank along with a detailed analysis of the market in which the company operates and often a valuation of the company itself.

If the company is impressed with the firm and interested in pursuing a deal, then it will engage the firm to execute the transaction. Depending on the type of transaction and the conditions of the market, these transactions can take anywhere from a few months to a few years to complete. At any point in time, bankers can be working on several pitches and deals all at once.

What do Associates Do?

Analysts tend to work on the front end of the deal cycle, working on pitch books for the bankers. Associates also work on the front end of the deal cycle, overseeing and editing the work of analysts in the preparation of pitchbooks.

But associates also assist in the execution of deals — preparing sales documents for various transactions, editing prospectuses and even discussing due diligence materials with potential purchasers in M&A and other transactions. As associates gain the respect of senior bankers, they may get to accompany the senior bankers on pitches and become more involved in business development.

A first-year associate may initially perform many of the same analyses as analysts — comps, DCFs, LBO, etc. — but associates eventually transition to more senior level work. Rather than cranking through the template financial models that analysts work with, some may redesign these models or build models specifically for particular deals.

Much of the legwork that associates perform involves spreading client financials to share with potential investors or drafting private information memoranda for M&A transactions or private placements. Because of the nature of this work, associates often work closely with clients, speaking with CEOs, CFOs and other members of the management team to assemble relevant information for sales documents.

Associates quickly learn to charm clients while at the same time leaning on them to provide timely, detailed information for sales documents. Corporate finance transactions can be extremely stressful on clients (and associates), and associates must be able to navigate tough situations where clients have become fatigued and emotional by the deal process.

The Perks of Being an Associate

Despite all the pressure and long hours, there are some payoffs for associates who stick around. Depending on the firm, starting salaries for associates can range from $100k to $150k, but when you add in bonuses that are often north of 50%, total compensation can range from $150k to $250k.

Many firms have a policy that when employees have to stay at work past 7pm, they get their dinner paid for. Like analysts, associates stay past 7pm nearly every night, so free dinners can quickly add up to a lot of money.

Other perks often include reimbursement for cell phone or blackberry bills, free cab rides for late trips home and the occasional opportunity to celebrate with other bankers at a lavish closing dinner.

Career Progression

If an associate chooses to leave the investment banking world, their experience can often be leveraged to move into positions that would normally require more experience. Investment banking is incredibly rigorous work with associates wracking up double the hours of the average worker and performing their work at an intensity level that is among the highest in the business world. It is no wonder that they have an easy time excelling in other careers.

For associates who hang around, two or three years of experience usually leads to a promotion to a vice president position. Hours for vice presidents may be a bit lower, but travel is a good bit more.

A high-performing vice president can make the jump to senior vice president or managing director after several years. Although the hours and seniority of these positions may be slightly more appealing than an associate position (senior bankers can still be found at the office on many weekends), they also bear much more responsibility for bringing in new business.

Like any career, anyone considering an associate position at an investment bank should look beyond just pay and prestige and think about whether or not they will enjoy the work. Some of the most valuable benefits investment banking has to offer are the incredible experiences of working with companies during pivotal times — and the character that those experiences build.

Try a practice interview simulation.

Source by laufmannua

The role of ngo's in international development


The purpose of this essay is to critically evaluate the role of NGOs in relation to international development in relation to development theories.  This would be focused on the merits and demerits of NGOs in addressing development issues with examples of projects across the world.

The role of non-governmental organisations (NGOs)

Non-governmental organisations is defined by World Bank, cited in Gibbs et al (1999) as private organisations who pursue activities to relieve suffering, promote the interest of the poor, protect the environment, provide basic social services or undertake community development. According to Charnowits (1997), NGOs emergence began through different stages namely: emergence, engagement, disengagement, formalisation, nuisance value, intensification and empowerment from the 1770’s, 1990’s and present. It was added that, the influence of this organisation can be traced across the world. Africa started through community organisations, South Asia: through the influence of the Christian missionaries, ideas of Mahatma Gandhi, local self-help traditions.  Latin America was influence of the Catholic Church, peasants’ movements, Middle East: traditionally apolitical and Eastern was based on democracy promotion.  Charnowits (2007). In recent years, NGOs have risen to prominence in the development field due to: loss of appeal of mainstream development theories such as neo-liberalism and institutionalism. Poor government performance had an effect, government were unable to reduce poverty in the 1980s and there was no effective mechanism to fulfil necessary role expected. What’s more, NGOs in the UK advocated poverty issues (increased access to policy makers). The emergence of global media system and the spread of democracy has increased participatory and transparency in participating and developing countries. Lewis (2007).

Lewis and Kanji (2009) describe NGO’s as organisations which aims to promote social, political and economic change. Non-governmental organisations are referred to as third sector organisations which exist to fulfil a number of functions in areas which tend to be neglected by the private and public sectors. Declining in public sector or governmental provision of services in some countries influenced the establishment of NGO’s to play an increasingly influential role in a variety of activities which impact upon the lives of many people.  Emerald (2004). NGO activity extends to lobbying private and public sector organisations which includes governments and other regulators. In areas where NGO’s are highly focused on lobbying and policy development activities, it can have a long-term impact on shaping the regulations faced by large numbers of people. Successful lobbying has resulted in a number of NGO’s becoming powerful in relation to many other groups within the society.  Emerald (2004). The role of NGOs in relation to development theories are the impact of this organisations in social, political and economic context. Smith (2005) said that, NGOs have a social purpose but governments rely on authority to achieve outcomes and private sector firms rely on market mechanisms to provide incentives for mutually beneficial exchange. In contrast, some use independent voluntary efforts to promote their values and aspects of social, economic and political development (civil society).  Pieterse (2001) define development as the organised collective intervention of affair according to standard improvement. The constitution of improvements varies according to culture, class, historical contexts and relations of power. A different perspective by Edward (1999) describe development as the reduction of material want and the enhancement of people’s ability to live a life they consider good across the broadest range possible in a population. Pieterse (2001) added that, development theory imported paradigms from social science: evolutionism, structural functionalism, post-structuralism, Keynesianism, neoclassical economics, marxism and neo-marxism. However, development theory has major influenced in the area of dependency theory. Like Pietersen development theory views, Lewis & Kanji (2009) NGOs development theory is based on modernisation, institutionalism, dependency, neo-liberalism, alternative development and post-development. Pietersen (2001) said that, neo-liberalism is returning to classical economics which eliminates the foundations of development economics: the notion that developing economies represent a case. Neo-liberal view is that there is no case, what is vital is to get the price right and let market forces do their work.

The role of NGOs in relation to this development theory is that, they are flexible agents of democratisation and private cost-effective delivery.  Sachs (2004). They are a way forward for aid which has the intent of allowing increasing social, political and economic participation by the broad section of the population through the processes of decision making, wealth and income distribution. Wegner (1993). Neo-liberal assumes that development can only be self-sustaining if it is from the grass root of society. Wegner (1993). Social provisioning in Chile is innovative due to the involvement of NGOs and the applications of tools and experiences perfected by these organisations in their work with the poor. Molyneux & Razavi (2002). The common denominator of NGOs operating in development field is to enable poor population groups to meet their daily needs such as clean water, housing, food, clothing and the provision of basic social services. Wegner (1993). Equally important, NGOs guard the respect for human dignity and human rights, conservation of ecological habitats, political participation, education and cultural identity. Wegner (1993). Mitlin et al (2007) said that, it is essential for the role of NGOs in development to be seen in three dimensions: concerns examining development as an underlying proves of social change and as a targeted intervention, the concerns division between arenas of state, civil society and market. The third is the localising and globalising tendencies in defining what NGOs do and who they are. Mitlin et al (2007).  

There are a large amount of projects undertaken by NGOs across the world, an example is the Emergency and Rehabilitation work by international NGOs in Afghanistan since 1979. Baraka & Strand (1995). The number of NGOs increased in this region working in field of health, emergency relief, construction and education. It was revealed that, most of these NGO’s are led by Afghans majority from Kabul and are based in Peshawar. Baraka & Strand (1995). This shows that NGOs are not imposing their policies on international communities but, working together with the people to develop their living standard. However, it was revealed that, despite more than 200 NGOs working for people in Afghanistan, there is very little to show for their efforts in terms of reconstruction and people’s return to normality. Baraka & Strand (1995).  

In Bangladesh, the fundamental aspect of rural poverty is unemployment and underemployment with limited opportunities outside agriculture sector which is increasing at a much slower pace than demand. Ullah & Routray (2007). For this reason, a large number of NGO like BRAC have been working in Bangladesh since the last three decades with the aim to alleviate poverty of the mass population of rural Bangladesh. Ullah & Routray (2007). In Uganda, the Poverty Alleviation Project (PAP) was the first of its kind to be financed by the African Development Fund (ADF). The aim of the project was to help in poverty reduction and the objective was to improve access of the poor particularly women. Their purpose was achieved through credit schemes to finance micro-projects, training and extension services local communities. ADBG (2001).  

 NGO’s and the state

Jantzen (2005) listed some disadvantages of NGOs: constant funding difficulties, possible lack of legitimacy, difficult to regulate because they can lack transparency and accountability, and NGOs can be ineffective due to lack of coordination. Despite these limitations, NGOs bring specialised knowledge, technical expertise, research capabilities and the ability to voice the concerns and needs of the poorest and vulnerable. ADB (2007). For example, Oxfam has been working with poorest people in Haiti since 2003. Oxfam (2009). They work closely with Disaster Risk Reduction (DRR) and having a plan of action for when disaster strikes. Their aim is to build the capacities of local communities and committees to coordinate emergency responses. Oxfam (2009). A variety of NGOs are active in HIV/AIDS and they are advantageous because they can work across functions more easily rather than been restricted to a single type of activity. FHI (2010) Furthermore, they provide the only sustained response to the epidemic and are likely to offer care and support. They are also able to work with vulnerable groups such as commercial sex workers (CSWs), illegal immigrants and intravenous drug users (IDUs). FHI (2010).

Davison (2007) said that, so-called NGO’s are complex in structure, in the activities they pursue and hence necessarily in accounting and accountability. Their profile runs parallel to the heightening awareness of governance across all sectors and their importance is also contemporaneous with growing use. Smith (2005) argued that, NGO’s are the equally important third stool on which development and poverty reduction rests. However, the growing body of experience provides evidence that NGOs may sometimes avoid the worst aspects of national and local politics by carefully choosing their bureaucratic sponsors. Some of popular NGOs are Oxfam, Amnesty International and International Red Cross.  Henderson (1997). Salamon (1994) used the expression “associational revolution” to describe the pervasiveness of NGOs. The author added that, NGOs deliver human services, promote grass-roots poverty economic development, protect civil rights and follow up objectives that are not attended by the state. Salamon (1994). For example, Sarvodaya Shramadana movement in Sri-Lanka focused on small-scale village improvement projects in more than 8,000 villages. Salamon (1994).

Furthermore, NGOs in the Caribbean serve as intermediaries between micro-level of the poorest household which should be served by political parties. Lewis (1994). However, Salamon (1994) argued that, NGOs in the south are not carefully structured in organisational terms but have the features of social and political movements. Therefore, it can be said that, NGOs have positive impact on the development of societies particularly “developing societies”, nonetheless they have their disadvantages. Aside from poverty alleviation, Auplat (2006) revealed that, NGOs influenced the shifts in entrepreneurship which has modified the environment operated by entrepreneurs’. Auplat (2006). Jan Pronk (in Hellinger et al 1988) warned that the corruption of NGOs will be the political game ahead. Pronk’s vision was beyond financial scandal says Edward & Hulme (2002), it was broadly the deviation of NGOs mission for social transformation. 

Reinert (1999) describe the role of the state as: a provider of institutions, a provider of income distribution and as a promoter of economic growth. It can be said that, the role of the state is not equal in every country of the world. For this reason, it can be assumed that, this has a major impact on the living standard and welfare of citizens particularly in “developing nations (Reinert, 1999) added that, the role of the state in developing countries is often seen as one of the protecting “civil liberties”. However, the role of the state in early stages of economic development was to secure freedoms from hunger, injustices and ignorance (Reinert, 1999). Smith (2005) said that governments rely on authority to achieve outcomes. It can be said that, NGOs rely on funding in order to execute projects, although, they have to abide by policies in the countries where support is offered. For example, Chinese NGOs have limited access to government programs, such as poverty relief projects (ADB, 2005)  

As explained earlier, the number of NGOs has risen through the past years due to less government involvement in human development. Edwards & Hulme (2002) said that, NGOs are meant to act as counter-weight to state powers. NGOs lobby national governments, the EU and multi-national organisations on laws and regulations that govern corporate practices (Deri, 2003).  For example, European based NGOs charged that certain agricultural practices of rival American companies were unsustainable during the “banana trade war” of the 1990s. The EU adopted this argument to bolster and rationalise its protectionist stance (Deri, 2003). Smith (2005) mentioned that NGOs limitation can be through voluntary failure which prevents the citizen sector (or civil society) from realising institutionalisation and goal deflect as comparative advantages in practice. Institutionalisation can cause loss of flexibility and participation and goal deflect can affect ends by means such as fundraising (Smith, 2005).

In the last 30 years, China has remarkably reduced poverty levels in the country according to ADB (2007) it is believed that this was achieved through sustained economic growth drive by broad based reforms and anti-poverty programs. Therefore, it can be argued that governments implements policies and work together with NGOs to alleviate poverty. As a general perspective, government (or state) are different in implementing policies. In China, the government recognises that poverty alleviation efforts are being undermined by gaps in implementation and institutional issues including poor targeting and delayed delivery of funds. ADB (2007). A recent study has compared the efficiency of the government of Bangladesh and NGO management in the provision of nutrition services. The analysis implies that NGO facilities are not more efficient in delivery of nutrition services in comparison to government (Mahmud, 2003).

There has been false believe that NGOs are independent to the government, NGOs in U.S raised about 70% of their income through public donations, 30% of this was from the government grants and contract others were from corporations, foundations and individual donations (ICDF, 1999).  Basically NGOs in the U.S and government are building partnership to protect civil citizens. On the other hand, government in Ethiopia new proclamation imposes restrict rules on association in the country. For instance, the law requires mandatory registration of all NGOs and prohibits any domestic NGO receiving more than 10% of its funding from abroad. The activities of NGOs relates to advancement of human and democratic rights (Global Policy, 2009). For this reason, it can be assumed that, the number of NGOs in the country is likely to reduce because like other developing countries in Africa most of the funding is generated from international NGOs. Therefore, this “proclamation” would relatively affect the lives of many Ethiopians. Clearly, NGOs can only fully operate in a country depending on the system of government and how closely the government is willing to support the NGOs activities. ADB (2007) argued that, NGOs work closely with poor people and arguably better than the government. Governments use legislative tools at their disposal to control and restrict NGOs (Global-policy, 2009).

NGOs are becoming vital and professional part of the global response. Due to their central role, the interactions that exist between them and governments, intergovernmental organisations are a natural development of an interdependent world.  MacKenzie (2003) said that, NGOs have traditionally worked alone on their projects with supporting agencies. However, education is highly labour intensive and most NGOs do not have the resources or capacity to maintain educational projects (MacKenzie, 2003). The author added that, only government can provide the most essential services such as “education”, and they alone can provide the political backing, resources such human, financial and material necessary for effective and sustainable education programmes. The strengths of NGOs have influenced governments to direct more funding through them. OECD (2008) noted that, Africa already had 12% of foreign official development aid (ODA) which was funnelled through NGOs (Wood, 1991).

Source by sally

The Advantage And Disadvantages Of E-Business

People from around the globe are using the internet for many things. It can be for studying, communicating, doing business or even shopping. Nowadays, surfing the internet has really become a fad for many business owners and shoppers because it’s very simple and practical to use.

Furthermore, just think about the conveniences of this exceptional invention, particularly when it comes to business. You can market your services and products to either locally or internationally. This means, you can greatly improve the potentials of your business. And because of that, e-business is on the rise.

On the other hand, as with any other customary businesses, there is also some advantage and disadvantages of e-business and you should know what they are in order to boost your business.

The following are some advantage and disadvantages of e-business which will help you understand more about doing business over the web:

1.    E- business has a lower start-up cost in comparison to any offline business which requires you to pay for the rent of office space and purchase various office materials and equipments before you can start to sell.

2.    You don’t have to hire any employees as E-business only needs regular maintenance and updating of the site.

3.    You can possibly bring your business to anywhere in the world without having to pay extra. With e-business, you can gain new clients and induce unlimited opportunities at a fairly low cost.

4.    You can boost your earnings with e-business since you have the benefit of offering your merchandise or services 24/7. In this way, shoppers on-line can buy, order or inquire anytime and wherever they may be. Your buyers can also enjoy the convenience of making payments via different internet banking tools.

And of course, there are some disadvantages with e-business too. And here they are:

1.    Although e-business is lucrative and time saving, doing business online is not always without charge. Some of the things where you have to spend some money include: for the hardware security, fees for the arrangements with online payment networks, online distribution overheads, maintenance of your e-business website and upgrading. These things are very important for making your business thrive on the net.

2.    Since your website is open to the general public, there’s a chance that your site guests or even clients will imitate your whole idea and marketing plan. Once the people realized that they can actually do what you’re doing to earn money, they will think of competing with you instead. Probably, they wouldn’t even mind copying every detail of your concept and strategies, as long as they are aware that they can earn from this soon.

3.    Credit card frauds and scams are all over the internet. That’s why many customers are reluctant to buy or do business online. With the growing cases of deceitful incidents everyday on the internet, most people become very scared to even provide the information of their bank account or credit card numbers. Due to this, they just choose to go shopping in the malls.

Finally, it’s really very important that you are aware of the advantage and disadvantages of e-business so you can work strategically in order to make things work for you. And you also need genuine determination and the sincere desire to achieve success from your preferred endeavor.

Source by christina gruble

A Definition For Business Ethics

A definition for business ethics could be given in the most basic understanding of choosing between the right and wrong actions. Business ethics prescribes the actions of individuals in an organization. It also suggests the kind of behavior that the organization as a whole gives emphasis to. It is most clearly expressed in the written or unwritten values and codes of principles that a company adopts. An organization is a community which creates its own culture and is therefore, sociologically speaking, capable of determining its standards for what constitutes acceptable decisions and behavior.

A company can approach a definition for business ethics in two perspectives—that of the shareholders and those of the stakeholders. A shareholder’s perspective of business ethics focuses on making decisions for the best interest of the owner such as a company’s investors. Their main interest is solely on maximizing the company’s profit. Those who look at business ethics in this way may be able to make the most money but it is with tragic results.

On the other side of the spectrum, the stakeholder’s perspective holds the belief that companies have certain duties to groups outside its financial operations whose needs should be taken into consideration. A phrase that is mostly associated with this type of thinking is that of corporate social responsibility. Decisions are made with an evaluation of its impact to those of people and groups within the organization and those outside of it. Stakeholders are the company’s employees, customers, suppliers, community residents, government agencies and competitors of the same industry. Shareholders are also among the stakeholders.

The importance of ethical business decisions are seen in the company’s life and development. Companies who behave in socially acceptable manners are more likely to enjoy long-term success against those who do business for profit only. A positive corporate image is achieved when people learn to trust and have faith in the company which eventually translates into monetary figures by an increase of sales. Gaining the customers’ trust is an important aspect of a company’s financial stability. Ethical decision making is also connected to the discussion on morality in business. Formulated codes of conduct are expressions of the company’s commitment to responsible business practices like corporate accountability and fair corporate governance.

As a study and evaluation of the principles governing the decision making process of a company, a definition for business ethics also include the reality of the many overlapping issues and concepts that question what is good and true. A simple ethical question is a company’s obligation to be honest to their customers while a broader philosophical and social issue would tackle a company’s responsibilities on preserving the environment and the protection of the employees’ rights. Managers have the burden of establishing a balance between the ideal and practical dimensions of the business.

Ethical behavior is necessary in doing business especially when decision making is a moral responsibility. The four-way test has been a suggestion to evaluate the morality of certain business decisions. It asks about the truthfulness of the decision as well as its fairness to everyone concerned. This sense of fairness is actually the main factor in building the goodwill of the organization.

Source by christina gruble

Online business ideas that really work

I am often asked what online business ideas really work.  It would seem that more and more people are searching the internet for online business ideas that will give them the home based laptop lifestyle that they dream of.  The internet continues to offer innovative and exciting online business opportunities to stir your entrepreneurial tendencies; you just need to run a Google search to find this out.  Just type in phrases like “work from home” “online business ideas” “home based business opportunities” and you will find so many results that I am sure you will struggle to sort the good from the bad.

Each idea will either appeal or not, but before you start looking you really need to ask what the best online business is for you?

I’ve researched many online business ideas and have put together, what I believe to be, a good list of 5 types of online business.  Take a look and see if one or more of these takes your fancy!

E-Commerce Stores

What is an e-commerce store?  Simply put it’s an online business version of a high street “bricks and mortar” business without the store premises.  What can be sold in this way?  The answer is anything that can be sold through a store.  This is a good starting point for any budding entrepreneur wanting their own online business.  However the days of picking up or replicating a template website and earning big bucks are well and truly over.  It is now such a highly competitive market you must carry out your due diligence before embarking on your venture.  This would include the following.

  • Market Research.  Is there a market for your product?
  • Keyword research.  How do you get noticed online?
  • Product sourcing.  Where you are going to get your products from.
  • Store design.  What will your image be?  Think of your target market.  Also how professional does your site look.  Will it install confidence in the consumer?
  • Payment Options.  What merchant account will you use? Which one gives you and the customer the most security?
  • Customer support.  This could be your nemesis if you do not have adequate customer support.  How will you set up and manage this side of your business?

Information Products to Sell

The internet is awash with information.  Most people these days turn to the internet when looking for answers.  They search and research almost anything and because of that I call them “Google experts”

Unfortunately these “Google experts” are rarely experts at all.  This is because there is so much information out there that is at best not consistent or at worst down right untrue.   So if you can find a niche for your online business and find a solution to somebody else’s why that is consistent, truthful and gets results, you might just have got yourself a potential goldmine!

Information products are a great way to set up an online business but there are a number of things to consider whilst doing your due diligence.

  • Market research – What do people want? What do people need? Will people be prepared to pay for this knowledge? Discover what motivates your customer to buy and you can sell until the cows come home!
  • Product creation – Are you going to produce your information as an e-Book or video series? Will you build a members site to allow people access to it? Will you allow affiliates to sell your product and if so, do you have the technical knowledge and know-how to manage a team of affiliates?
  • Product graphics – Design sells! Do you have the skills to brand your product well and make it stand out in the marketplace?
  • Sales Page Design and Copy – Can you write great copy that sells off the page or will your prospects end up snoozing while your words fall from the page like dead wood?

Finding information products to sell may only be the first step as an online business owner!

Business Blogging

There are many benefits to blogging and blogging can be a great way to start an online business. For the budding entrepreneur this option can provide a secondary source of income which can eventually grow into a full time income over time. However be prepared for the long haul, this online business is not going to make you a fortune over night.  Expect to make a few mistakes along the way until you find a niche that likes what you have to offer. Here is a list of what to consider before choosing this direction.

  • Market research.  As before you must start here. You might be told or think about starting with something that interests you but I believe this is why most people fail to make any money online. Why?  You could be interested in “X Factor” on TV.  Great whilst it is on but interest soon wanes and how many other people are trying to sell to the same audience?  Even worse, what if you are interested in the design of the common house brick?  Ok, extreme I know but I’m sure you must understand what I’m getting at.  You must find a niche that people are already interested and that you believe you could enjoy writing about.
  • Keyword research – This is the “Holy Grail” of internet profits. Use Google’s Keyword tool as a place to start.
  • Research News Items and relevant websites. You must keep up to date with what is happening in your niche.  Keep your site up to date and your visitors and newsletter subscribers will keep coming back. When they see you as the font of all knowledge they will start to value what you have to say and offer and your income will grow as you integrate affiliate offers as part of your plan.
  • Setting up a blog nowadays is a lot easier.  There are numerous free blogging platforms such as Word press, Blogger and Typepad to help you get started. Over time though, you will want to have your own self-hosted blog so research this as well.
  • Content is King! Writing good content can be quite daunting.  However it is essential to produce high quality, informative and interesting content for your blog. If you haven’t written a word since leaving School or believe that you cannot write very well this doesn’t need to stop you.  There are numerous text broker sites such where you can find great article writers at reasonable prices.
  • Social media Blogging has become an integral part of social media and if you are going to make the most of your blog you will want to integrate it with your social networking profiles and invite your network of friends, followers and subscribers to share it. There are hundreds of applications and plug-in that will allow you to do this with little technical knowledge needed at all.  Word of warning though, this can be seen by some as being a bit like “Spam” and turn them off.  So make sure your content is strong.

Blogging for money is one of the most enjoyable ways to make a living online but don’t expect it to be easy!

Affiliate Marketing for Beginners

Affiliate marketing as an online business is where most budding entrepreneurs start.  Whilst this can be a good way to earn money it will not on its own provide you with, in my belief, a full-time income.  Affiliate marketing is where you get paid a commission to promote someone else’s products or services.  The benefit is the product owner has all the supply, customer service, payment etc issues to deal with.  All you do is send targeted traffic to their websites and if the lead purchases you get paid a commission.  This perhaps is the quickest way to an online business, however do not for one moment think this is easy.  There are thousands of affiliates out there competing for the same traffic.  Not only this but Google has now placed restrictions on affiliate advertising and therefore this has become one of the toughest areas for online business to make money.  Here is what to consider:

  • Product research.  Sites such as Clickbank, eBay and Amazon offer ways for affiliates to make money. The problem is what to promote.  Get it wrong and you’ll wait for a month of Sundays before getting any commission.  The key is to find the products that convert to sales due to good value, unique offering or great sales pages and spend your time and energy sending traffic into those.
  • Landing page design – A good sales or landing page can be the difference between a 3% conversion rate and a 25% conversion rate. The answer is to split test one page against another and to keep split testing in order to continually optimize for increased sales. As a marketer it’s critical to test and test until you know exactly what visitors to your website or sales pages are doing and the best way to do that is by installing analytics and learning how to use it. Google Analytics is free and provides you with all the data you will ever need to be successful when marketing products as an affiliate.
  • Copy – words sell! If your copy isn’t good people will not trust you or your recommendations.  If you cannot do it yourself find someone that can or increase your knowledge.
  • Email autoresponders – The money is in the list! This is by far the best way to make money.  Build a list of people who trust what you have to say and build a relationship with them and over time they will listen to you and take your recommendations to buy. Don’t do what most affiliate marketers seem to do these days, though, and try to sell everything you can for a fast buck or your list will stop listening to you and will refuse to open your emails.

Source by Lance Fisher