I have a Chartered Governance qualification NQF7, globally recognized in accountancy, economics, tax and company secretaryship, as well as subjects on Project Management at Masters.
I have over 30 years of private practice where I gathered rare experiences.
6. Issues which Stand in the Way
There are critical issues to be considered after searching for product ideas.
6.1 Patents
A patent is an exclusive legal right granted by a government to an inventor for a limited period of time — typically 20 years—preventing others from making, using, or selling a new invention. It is a form of intellectual property that covers new products or processes that offer technical solutions to problems.
Early in your journey you must understand what patents are and where to find patent databases. There are EU and American database etc. Each database takes time to navigate, depending on your areas of interest. There are laws governing patents. Briefly patents are deterrents and are serviced annually until expiry date. Patents cost money to register and maintain. Patents are not 100% protection but to ignore them can be costly because the patent holder can claim all your profits in courts after you have set up the factory.
As part of this lecture, I must paint the current picture.
1.1 The Number of Formal Businesses in a Country
The number of formal businesses in a country should be at least 5% of the population or equivalent. Formal businesses have five distinct features.
(1) Project conceptualization
(2) Skills capacity
(3) Marketing strategy
(4) Adequate funding
(5) Full administration.
Five percent (5%) allows for scarcity or that the jobs are rare enough so that people look after and respect their jobs. In 2021 Britain had 10% formal businesses, USA 9%, Spain 9%, Italy 6%, Germany 4%, Japan 4%; the latter having large motor industries making up to the equivalent of 5%.
Details are fully elaborated in the book, “What Economists Are Missing” by Luke Montgomery found at Amazon, Take a Lot etc. The book discusses the full ]The number of formal businesses determines the level of employment. The logic is the same with a class of learners. You cannot have 30 chairs for a class with 50 leaners. You must have 20 more chairs and maybe a second classroom. To provide enough formal employment a country must have enough employers, which are the formal businesses.
2.1 Bank method is inadequate to Grow an Economy
The number of active formal businesses guarantees quality formal employment with a pension, better standard of life and better revenue collection for the state through PAYE.
How do countries germinate enough formal businesses. The current methods, guided by banks, are inadequate. Unfortunately, there is where our schooling is limiting everyone. Accountants and economists only go as far as the bank model and end there. The bank method is cemented as the only method. Ask yourself how to increase the number of formal businesses. The bank mode cannot achieve that.
3.1 Countries should facilitate to germinate formal businesses.
The starting point is to prepare enough projects to reach a number consistent with 5% of the population. It has already been alluded that there were few business plans for manufacturing. There are four reasons why there were no business plans for manufacturing ;
1) that product ideas are not clear
(2) the manufacturing method
(3) cost of machines are not known
(4) funding is almost impossible.
What do you know about economics. I will highlight what economists are missing, which is keeping you poorer.
7.1 The definition of economics.
There are many academic definitions of economics which confuse issues. The correct The Pocket Oxford Dictionary of Current English defined economics as the science of production and distribution of wealth, so did the early economists such as Adam Smith, David Ricardo and John Stuart Mill. Wealth is abundance. Science means the dynamics, projections, tabulations, statistics, forecasts, and funding for wealth creation and distribution. Economics is to produce in abundance and then distribute. What countries do is to distribute what is there first before producing in abundance. This training goes a long way to target production first.
A complete, written Capital Organization Plan ready to present and implement.
