Business
How to Build Social Capital to Grow Your Business
Since the COVID-19 pandemic, businesses have been navigating a rapidly changing landscape. Traditional revenue generation methods may no longer be as effective, and companies are looking for innovative approaches to drive growth. One such powerful yet often overlooked strategy is leveraging social capital. By effectively utilizing social capital, businesses can enhance revenue generation and gain a competitive edge. Let's take a look into the concept and methods of social capital building.
What is Social Capital?
Social capital refers to the value embedded within the relationships and networks a company has built with various stakeholders, including employees, customers, suppliers, and the wider community. It encompasses trust, shared norms, and mutual obligations.
Social capital can manifest in various forms, such as strong customer relationships, influential industry connections, and a supportive network of partners. It represents an intangible asset that companies can leverage to gain a competitive advantage and stimulate revenue growth.
Read more: How to Build a Successful Company?
Significance of Social Capital in Business
Social capital holds immense significance in the business realm. It enables companies to access resources, knowledge, and opportunities that might otherwise be unavailable. By fostering strong relationships with customers, companies can enhance customer loyalty, drive repeat business, and benefit from positive word-of-mouth referrals.
Additionally, social capital facilitates collaboration and knowledge-sharing among employees, leading to increased productivity and innovation. Companies with robust social capital often enjoy favorable partnerships, joint ventures, and business opportunities that arise from a strong network.
Ways to Build Social Capital for the Growth of Your Business
The following strategies can help you develop social capital and generate more revenues for your business or company.
Building A Strong Network
Building a strong network involves actively connecting with individuals and organizations within your industry and related fields. It would be helpful if you attend conferences, industry events, and trade shows to meet potential customers, partners, and influencers.
Read more: Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
You may engage in networking activities both online (LinkedIn can be a great option) and offline, such as joining professional associations or participating in industry-specific forums. Attempt to actively seek opportunities to establish relationships and build rapport with key individuals.
Cultivating Relationships
Once you have established connections, it would be better to focus on cultivating meaningful relationships. It is essential to invest time and effort in nurturing these relationships by providing value, offering assistance, and sharing relevant insights. You can develop yourself as a resource by sharing industry knowledge, providing support, and connecting individuals who can benefit from each other.
By consistently demonstrating your willingness to help and contribute, you can strengthen your social capital and increase the likelihood of receiving support and referrals.
Read more: What to Consider Before Investing in a Startup or Company?
Growing Strong Customer Relationships
Try to focus on building meaningful connections with your customers. Building and nurturing strong relationships with customers is essential for utilizing social capital. Companies can focus on providing exceptional customer experiences, personalized services, and addressing their needs effectively. By going the extra mile to foster trust and loyalty, businesses can benefit from positive customer testimonials, repeat business, and increased referrals.
In Uganda, a recent ban on charcoal making disrupts a lucrative but destructive business
The charcoal makers in the forests of northern Uganda fled into the bush, temporarily abandoning their precious handiwork: multiple heaps of timber yet to be processed.
The workers were desperate to avoid capture by local officials after a new law banned the commercial production of charcoal. They risked arrest and beatings if they were caught.
But what's really at stake for the charcoal makers is their livelihood.
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"We are not going to stop," said Deo Ssenyimba, a bare-chested charcoal maker who has been active in northern Uganda for 12 years. "We stop and then we do what? Are we going to steal?"
The burning of charcoal, an age-old practice in many African societies, is now restricted business across northern Uganda amid a wave of resentment by locals who have warned of the threat of climate change stemming from the uncontrolled felling of trees by outsiders. In reality, not much has changed as charcoal producers skirt around the rules to keep supply flowing and watchful vigilantes take matters into their own hands.
Much of northern Uganda remains lush but sparsely populated and impoverished, attracting investors who desire the land mostly for its potential to sustain the charcoal business. And demand is assured: charcoal accounts for up to 90% of Africa's primary energy consumption needs, according to a 2018 report by the U.N. Food and Agriculture Organization.
Before the charcoal ban, local activists formed vigilante groups in districts such as Gulu, where a former lawmaker recently led an attack on a truck that was dispossessed of 380 bags of charcoal. Although Odonga Otto was then charged with aggravated robbery, the country's chief justice praised him as a hero.
Also Read: Plastic Pollution: Harmful effects on human health and environment
"I have not heard anybody who is destroying our environment being charged," said Chief Justice Alfonse Owiny-Dollo, who is from northern Uganda. "If you steal from a thief, are you a thief?"
The week after Owiny-Dollo's public comments, President Yoweri Museveni issued an executive order banning the commercial production of charcoal in northern Uganda, disrupting a national trade that has long been influenced by cultural sensibilities as much as the seeming abundance of idle land. Commercial charcoal production is still permitted in other regions.
The ban follows a climate change law, enacted in 2021, that empowers local authorities across the country to regulate activities deemed harmful to the environment. Trees suck in planet-warming carbon dioxide from the air, but burning charcoal emits the heat-trapping gas instead.
Days after Museveni's order, a team of Associated Press journalists walked into a charcoal-burning enclave in a remote part of Gulu, 335 kilometers (208 miles) from the Ugandan capital of Kampala.
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One local official, Patiko Sub-County Chairman Patrick Komakech, gave chase when he heard fleeing footsteps. A small patch of bamboo opened up to an almost bare patch where trees were being cut, juicy stumps still fresh here and there.
Komakech was agitated and on the verge of tears.
Timber had been heaped like contraband ivory in different spots, and grey smoke rose from one pile being processed. Beside it stood loaded bags of charcoal. The charcoal makers slept in little tarp tents draped in dry leaves.
"I am completely perturbed (by) all this destruction," Komakech said, speaking of charcoal makers who "are actually imported and put in this community, and they do this thing without the mercy of leaving any vegetation."
He kicked at felled logs, saying they were those of the African Shea tree, a plant prized by the region's Acholi people for its fruit as well as its oil, often used in cosmetics.
The charcoal burners eventually approached Komakech, who wished to destroy the heaps of timber with kerosene, and said they were simply earning a living and responding to demand.
Uganda's population explosion has heightened the need for cheap plant-based energy sources, especially charcoal. In this east African country of 45 million people, charcoal is preferred in households across the income spectrum but especially in those of the urban poor — seen as ideal in the preparation of certain dishes that require slow cooking. Middle-class families maintain both gas cookers and charcoal stoves.
"Even those policemen who are coming to beat us, they are cooking with charcoal," said Peter Ejal. "We are not here to spoil the environment. We are here by their orders, those people who are selling these trees."
His colleague, the ragtag charcoal maker Ssenyimba, said bluntly, "When we finish this place we will go to another place."
One charcoal maker asserted that charcoal from northern Uganda was likely used even in the State House. Others charged that they were cutting the trees with the complicity of landlords who sell charcoal-making rights by the acre to interested dealers.
The industry can be lucrative for landowners and investors.
In nearby towns a bag of charcoal fetches about $14, but the price rises further as the goods approach Kampala. Ssenyimba said he's paid about $3 for every bag he makes.
An acre of property with plenty of trees goes for up to $150 in Gulu, although the sum can be much smaller in remote but vegetation-rich ranches owned by the poorest families. The investors then deploy men armed with power saws and machetes, working over specific places and leaving when they have cut down all the trees they were sold.
District councils in the region raise revenue from licensing and taxes, and corrupt members of the armed services have been protecting charcoal truckers, according to Museveni and Otto, the former lawmaker now leading vigilantes against charcoal makers.
Otto has helped cause the impounding of multiple trucks in recent weeks, including two recently seized ones parked outside a police station where a crowd gathered one recent afternoon, hoping to grab the goods.
He said he plans to serve hundreds of local officials with letters of intent to sue for any lapses in protecting the environment. Otto told the AP his goal is to make the rest of Uganda "lose appetite" for charcoal from his region.
"We go to the fields where the charcoal ovens are and we destroy the bases," he said. "We managed to make the business risky. As of now, you drive a hundred kilometers and you will not find any single truck carrying charcoal."
The ban on commercial production in northern Uganda is almost certainly bound to push up the retail price of charcoal. Otto and others were concerned that charcoal dealers would avoid authorities by ferrying charcoal bags in small numbers — on the backs of passenger motorcycles — to towns where the merchandise could be stealthily loaded into trucks.
Alfred Odoch, an environmental activist in the region, said he supports the work of vigilantes, describing charcoal making as "the biggest threat" since the end of a rebel insurgency in the region two decades ago.
Vigilantes pressurize charcoal burners as well as local officials to minimize "mass tree cutting" in northern Uganda, said Odoch. Charcoal making, he said, should be acceptable only as a small business by families selling "two or three sacks" in a week or so.
"My fellow vigilantes who are doing a lot of work to stop this, I support them," he said. "The fight for environmental justice is not only (for) one person."
How to Build a Successful Company?
In today’s fast-paced and ever-evolving business world, the term “successful company” is often used to describe organizations that have managed to achieve exceptional growth, profitability, and market dominance. However, building a successful company is not just about generating high revenues or achieving a large market share. Rather, it is about creating a sustainable business model that delivers real value to customers while ensuring long-term profitability and growth.
Building a successful company is not easy, but it is possible with the right mindset, strategies, and execution. A successful company requires a lot of hard work, dedication, and persistence to overcome obstacles and achieve goals. In this article, we will provide a comprehensive guide to help you build a successful company from scratch.
12 Ways to Build a Successful Company
Building a successful company involves several essential steps. Let’s go over the essential steps you need to build a successful company.
Analyze the Market and Competition
Analyzing the market allows entrepreneurs to identify potential opportunities and gaps in the market that their business can fill. By understanding customer needs, preferences, and trends, businesses can develop products or services that better meet these demands, providing a competitive advantage in the marketplace.
Read More: Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
Develop a Business Plan
Develop a comprehensive business plan to outline your company's goals, strategies, and financial projections. This plan serves as a roadmap for your business and should include your company's vision, mission, and values. In addition to that, identify your target market, analyze the competition, and define your unique selling proposition. Determine the resources and funding required to start and operate your business.
To monitor your expenses and revenue and ensure adequate cash flow for your business in the long term, include financial projections and budgets in your business plan. Building a successful business requires a solid business plan.
This plan will act as a blueprint for your company -- helping you make informed decisions and stay focused on your goals as you face the challenges of entrepreneurship. Developing a well-researched and structured business plan is crucial to transforming your business idea into a thriving company.
Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
Starting a business is exciting, but it requires capital to get off the ground. While there are various ways to finance a business, two common options are having a silent partner or seeking an investor. Both options can bring in the necessary funds but have different implications for the business' ownership and management. This article will explore the key differences between a silent partner and an investor, including their roles, responsibilities, and expectations. By understanding these differences, a business owner can decide which funding option is the right fit for his or her business and associated goals.
Who is a Silent Partner or Sleeping Partner in a Business?
A silent partner, also known as a sleeping partner, is an individual or entity that invests money in a business without actively participating in its management or operations. In other words, a silent partner provides capital and shares in the profits or losses of the business but does not take an active role in decision-making or day-to-day operations.
Silent partners are typically passive investors who are looking for a return on their investment, and they may not have any expertise or experience in the industry or market of the business they are investing in. While they do not participate in the management of the business, silent partners may still have some rights and responsibilities, depending on the terms of the partnership agreement.
Read More: What to Consider Before Investing in a Startup or Company?
Differences Between a Silent Partner and an Investor
Although a silent partner and an investor both provide capital to a business, there are key differences between the two.
Role and Involvement
A silent partner provides capital without actively participating in the management or operations of the business. On the other hand, an investor may take on an active role in the business and offer strategic guidance and expertise.
Risk and Liability
Silent partners generally have limited liability and are only liable for their investment amount. In contrast, investors may have unlimited liability and potentially lose more than their initial investment.
Read More: What to Consider Before Buying Land: A Step-by-Step Guide
Return on Investment
Silent partners typically receive a share of the profits based on their ownership stake, while investors may receive a return on investment in the form of equity, interest payments, or a combination of both.
What to Consider Before Investing in a Startup or Company?
Investing in a startup or company can be an exciting opportunity, but it can also be a risky one. Before deciding to invest, several key factors should be carefully considered to help minimize the risks and increase the chances of a successful investment. By taking the time to thoroughly evaluate all the necessary factors, investors can make informed decisions. This article will explore these considerations in more detail and discuss how to evaluate potential investment opportunities.
11 Factors to Consider Before Investing in a Startup or Company
There are numerous reasons why a startup can fail – ranging from unfortunate circumstances to an inadequate business plan or poor timing. According to statistics from the US Bureau of Labor, approximately 20% of newly established businesses do not survive beyond their first year of operation. The following factors need to be considered before making an investment decision.
Analyze the Domain
We all have experience working within certain industries or possess a personal interest in particular sectors. To increase the likelihood of successful investment, it is advisable to seek out startups that align with one's area of expertise or interest. This enables one to better comprehend the business and its potential, thereby allowing one to invest with confidence.
Read More: How to Buy Sanchayapatra in Bangladesh in 2023: A Beginner's Guide
Conversely, investing in startups from unfamiliar sectors may make it difficult to accurately evaluate the business and make informed investment decisions.
Business Plan
When listening to startup founders pitch their ideas, it is important that their plans appear well-thought-out and not untested ideas with uncertain profitability. For early-stage investments, it is advisable to prioritize startups with practical and scalable concepts.
Before investing, it is essential to gain a thorough understanding of the company's framework and processes. Additionally, the business idea should be innovative and fresh and offer solutions to existing problems.
Read More: What to Consider Before Buying Land: A Step-by-Step Guide
Check the Confidence in Founders
A truly innovative idea can be captivating, especially when presented by a passionate founder. While venture investors primarily assess the team, the capability to execute the plan should be given priority. It is not uncommon for startups to be founded by individuals without prior experience in launching new ventures.
However, they must demonstrate their ability to transform an idea into a reality through past experience or accomplishments.
Traders can temporarily operate at Bangabazar from this Saturday: Salman F Rahman
Traders and shop owners of Dhaka's Bangabazar Market that burned down on April 4, can operate their businesses temporarily from this Saturday (April 08, 2023) at the site and adjacent area so that they can recover some of the losses.
Bangladesh Prime Minister's Adviser on Private Industries and Investment, Salman F Rahman, gave the instruction to the shop owners’ association, after visiting the site today (April 06, 2023).
Salman F Rahman visited Bangabazar Market along with leaders of different trade bodies and shop owners' associations.
Last Tuesday, a fire broke out at the Bangabazar Complex, one of the main shopping areas in Dhaka city. During his visit to Bangabazar, Rahman also interacted with the affected traders of the market.
Read More: Fakhrul suspects influential AL leaders behind Bangabazar Market fire
After Rahman left Bangabazar, Bangladesh Shop Owners Association President Helal Uddin told reporters that he (Rahman) called him on his way back from the market.
PM’s adviser then told Helal that the burnt area will be cleaned tomorrow (Friday), and the traders can temporarily operate there from Saturday.
While visiting the market, Rahman also said that he spoke to Prime Minister Sheikh Hasina, who was deeply saddened by the incident.
“The Prime Minister would like to provide assistance from her fund. Apart from this, many people from all over the country want to help,” he was quoted as saying.
Read More: Bangabazar traders want interest-free loans to survive in business
“For this, the shop owners’ association has been asked to open a joint account with the business organization here,” he said.
He urged the Market Committee to prepare a list of affected traders and submit it to the City Corporation by next Sunday to get financial assistance.
Rahman also said that if the previous case filed by some traders of Bangabazar Market is withdrawn, initiatives will be taken to implement the government’s previous plan to build a new market there.
He said, when the market was burnt down years back, the government wanted to construct a new building there. But a fraction of traders did not want it and filed a lawsuit. If that case is withdrawn, the market will be rebuilt according to the previous government plan.
Read More: Govt to assist Bangabazar businesses to recover from fire damages: PM Hasina
Bangabazar traders want interest-free loans to survive in business
The affected traders of the Bangabazar fire incident have sought interest-free loans to survive in the business and for repayment of their bank liabilities.
In addition, they called on the government to develop infrastructures for business operations again at the same place.
The traders of Bangabazar Market made the demand while talking to reporters in front of the damaged market on Wednesday (April 05, 2023).
Read More: MCCI to stand beside businesses that suffered loss in Bangabazar fire
On Monday a devastating fire gutted around 5,000 small shops in Bangabazar and its nearby markets.
Standing in front of his burnt shop, businessman Daud Mia told UNB that he took a loan of Tk 15 lakh from the bank a few days ago giving his home as collateral.
“The goods of my three shops were burnt in the fire along with other goods, I am now destitute. There is no arrangement to pay the installments. So, I am asking the government for an interest-free loan to repay the bank loan,” he said as he sobbed.
Read More: Bangabazar Market manifests govt’s irresponsibility: Fakhrul
The businessmen urged the government to allow setting up shops in the same place again so that the traders who have clothes in their warehouse can sell them.
Authorities say an assessment is being done to determine the losses from the fire, apparently to devise a way for supporting the affected businessmen.
Building up a resilient, sustainable business model needed to overcome future challenges: BGMEA chief
BGMEA President Faruque Hassan has said they need more support from the advanced economy in terms of product and fiber diversification, innovation, technological upgradation, reskilling and up skilling their people.
"We need to put emphasize on building up a resilient and sustainable business model to overcome the future challenges," he said while speaking at the 4th edition of Sustainable Apparel Forum on Thursday.
Faruque Hassan said they have established BGMEA Centre of innovation, efficiency and OSH.
The centre will works as an exchange hub of industry wide best practices as it endeavors to disseminate knowledge to beneficiary groups continuously in the area of product development, efficiency, use of technologies, process upgradation, environmental sustainability and social innovation.
"We need assistance from all of our esteemed stakeholder to make this center more vibrant and useful," said the BGMEA chief.
"So please come forward, collaborate, and exchange knowledge and expertise to ensure more decent employments, and build a resilient and sustainable fashion industry," he said.
Commerce Minister Tipu Munshi spoke as the chief guest.
The BGMEA chief said they have ensured 100% safety in terms of fire, structural and electrical remediation within the workplace which has restored global confidence in them.
"We have taken a number of initiatives to ensure the better wellbeing of our workers," he said.
Business Confidence Survey: Businesses maintain positive outlook over near term
The overall Business Confidence Index (BCI) for 2022 stood at 74.4, indicating a positive outlook for business conditions over the next six months, according to the Bangladesh Business Confidence Survey Report 2022-23.
Business entities across Bangladesh are confident that the volume of orders for the manufacturing sector, demand for services in the service sector, selling prices, and business activity will increase in the next six months.
As a result, businesses are willing to expand their employment and investment over the same period.
However, business entities, especially in the manufacturing sector, have low confidence in costs, indicating the need for immediate action to address the cost burden of businesses, including the cost of electricity, water, gas, rent, and materials.
The Business Initiative Leading Development (BUILD) and the USAID-funded Feed the Future Bangladesh Trade Activity jointly launched the "5th Business Confidence Survey Report 2022" Sunday at a hotel in Dhaka.
The survey was conducted between September and November 2022, covering 567 business entities to analyse the existing business condition in the last six months (March 2022 – August 2022) and anticipate turning points in the economic activities for the next six months (December 2022 – June 2023) to enable businesses to prepare and plan accordingly to mitigate risks.
Industries Minister Nurul Majid Mahmud Humayun said the 5th Business Confidence Survey is significant as it has applied the methodology of harmonised business confidence survey recommended by the Organization for Economic Co-operation and Development Statistics Directorate.
Read more: Over 200 foreign delegates to join Bangladesh Business Summit 2023: Jasim
"We are pleased to have learned that the overall Business Confidence Index (BCI), conducted by BUILD, gave an optimistic perception of business conditions despite the challenges Bangladesh is currently facing due to the global economic turmoil," he said.
"The other scores in the survey show some visible recoveries of business activities and emerging business confidence. However, the cost confidence plummeted to as low as 22.4 over the next six months and the government must take this into serious consideration in fiscal and monetary measures."
BUILD CEO Ferdaus Ara Begum said the upward movement in the BCI was driven by improvement in the sentiments for six out of seven components of the BCI, namely, employment, the volume of order or demand for service, business activity, selling price and investment.
Out of the seven components, only the overall business cost index is negative giving a pessimistic perception. The diffusion index in this study ranges from 0 to 100 with a midpoint of 50 where less than 50 means contraction or less optimism and more than 50 means expansion or optimism.
The overall business cost index stood at 35.8 over the last six months (March 2022 – August 2022) and is expected to reach 22.4 over the next six months (December 2022 – June 2023). Around 72 percent of business entities in this survey reported that the overall business cost will increase over the next six months.
Martin Holtmann, country manager of the International Finance Corporation for Bangladesh, Bhutan, and Nepal, said: "The Business Confidence survey is the summary indicators of how the businesses feel. It is an individual measurement of the overall business condition of Bangladesh."
"The BCS is a couple of early morning signs. We hope that these signs will help businesses make decisions. However, need to be careful about the status quo bias. We need to look at the trends. We need to give voice to the voiceless; in this case, they are CMSMEs, especially women entrepreneurs. It is well recognised that Bangladesh is doing good in every indicator."
Sameer Sattar, president of the Dhaka Chamber of Commerce and Industry, said an optimistic view emerges from the Business Confidence Survey 2022-23. "This survey found that our business community is showing confidence and resilience. One of the major recommendations the government needs to consider is that the cost of doing business needs to be minimised."
"CMSMEs are suffering from multiple issues. Getting finance is one of the challenges for CMSMEs. We would recommend removing the medium from the CMSME category. One thought is that this survey can be more inclusive. More companies and sectors are needed to be included to make the survey more inclusive," he added.
Newly established Bangladesh-Türkiye Business Forum launched as trust
Six months after the formation of the Bangladesh-Türkiye Business Forum (BTBF), the founders have decided to set up a formal organisation to better serve the objectives of the forum.
With the support of the Turkish Embassy, the Forum was formalised as a trust to protect and promote Turkish and Bangladeshi commercial interests through a trade and investment-focused approach and activities.
In June 2022, the Turkish Embassy initiated the formation of BTBF to further develop bilateral trade, investments and cultural encounters and act as an advocacy platform promoting bilateral relations between Bangladesh and Türkiye.
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Led by Rubana Huq, managing director of Mohammadi Group and vice-chancellor of Asian University for Women and Salahuddin Kasem Khan, chairman, EC of Board, AK Khan and Co, the BTBF now includes 12 Bangladeshi conglomerates and four Turkish companies.
As of now, the founding trustees of the BTBF are Founding Chairperson Rubana Huq, Founding Co-Chairperson Salahuddin Kasem Khan, Trustee and Founding Deputy Chairperson Kazi Zahedul Hasan, founder and managing director of Kazi Farms Group, BTBF Trustee and Founding Secretary Ercüment Polat, CEO of United Aygaz LPG, Enayetullah Khan, founder and managing director of Cosmos Group, Hakan Altınışık, director of technology and innovation of Arçelik, Mehmet Yıldız, administrative and financial specialist of NKY Architects and Engineers, and Özgür Türk, country director of LCWaikiki.
The other BTBF founding trustees are Anjan Chowdhury, key stakeholder of Square Group, Moinuddin Hasan Rashid, chairman and managing director of United Group, SK Nasir Uddin, chairman of Akij Group, Alihussain Akberali, chairman of BSRM, Mirza Salman Ispahani, chairman of MM Ispahani, Abul Khair Litu, chairman of Bengal Group and founder of Bengal Foundation, Simeen Rahman, group CEO of Transcom Group, and Rupali Chowdhury, managing director of Berger Paints Bangladesh.
Read: Business Eswatini for signing MoU with FBCCI
On January 17, 2023, the BTBF office was inaugurated at Marina Mansion in Gulshan-2 in Dhaka followed by a press conference organised at the Turkish Embassy Residence to launch the BTBF Trust.
As one of the core objectives of the BTBF is to promote and highlight the shared historical and cultural values of Bangladesh and Türkiye, the official launch of the BTBF was preceded by a classical music recital by the scholars of Bengal Parampara Sangeetalaya.
After the recital, Turkish Ambassador Mustafa Osman Turan addressed the guests and the media, followed by remarks from Salauddin, Ercüment, Rubana and Prime Minister's Private Industry and Investment Adviser Salman F Rahman.
During their meeting on February 7, the BTBF trustees decided to make an in-kind contribution to the relief efforts for the victims of the February 6 earthquakes in Türkiye.
The BTBF is planning to visit Türkiye in September 2023.