At the end, the formal sector and everyone else might pay the price if methods aren’t standardized
According to Kwame Sowu, the CE.O of Villandro Bar and Restaurant at East Legon.
The informal sector could easily account for 8-12 billion dollars or roughly 20% of G.D.P. This is his projection of the market and economic impact of this sector.
On an episode of the #effectiveliving series hosted on Citi-FM by Bernard Avle, Kwame Sowu asserted that the informal sector could be more recognised and bigger if only we tackle the two major problems that face the sector.
Critical challenges to explore
He listed them to be production gap and marketing and Sales Gap. According to Kwame Sowu the challenges he mentioned earlier present themselves as opportunities. The informal sector is largely dominated by least educated individuals who are passionate and hardworking. If the sector was organised the typical carpenter should be able to design and produce.
However the reality is that the carpenter may not have the skills to design, take the client through modelling whether colour modelling or specific materials to be used. That’s when the draughts-man’s skill can be put to use. Draught-persons provide 3D modelling of what the carpenter can do, after which the sales and marketing personnel markets and sell the furniture or whatever product is realized. For these to happen, partnership and cooperation is the way forward.
Further discussion on how to overcome production gap
To overcome production gap the trades-persons can collaborate with the draught-person and to overcome the marketing and sales gap the trades-person and draft-persons can collaborate with the marketers and sales persons. Without excluding this fact; the bigger you become the faster and easier it is to mobilize funds to scale up. Hence 20-30 trades-persons can be brought under one umbrella.
Enablers highlighted to get aggregation process right
He over-emphasized the importance of aggregation; how some enablers such as partnerships, creating designs and standards can create an unbeatable value and volume economy within the informal sector.
He didn’t go without mentioning that design and standards is the differentiating factor of the heavy industrialized nations or nations that are seen to be doing well.
On the path to aggregation comes the next big thing; standardization.
He also said, curiosity plays a big role in business development. It’s only though curiosity we can find out what product a UPS Campus of about 15000 students would need. Which products would every single student need so as to run a volume business.
Here, the main goal is to analyse what you could gain based on the margins you can bring on board~Benard Avle of Citi Fm.
When the potential is huge…
One must note that aggregation business opportunities are fairly distributed in every field of the inform economy especially agriculture and shelter o or craftsmanship and clothing. The potential is huge in the agriculture sector since as a marketer you can create a pool of 30-50 rabbit farmers or plantain roasters , add value and sell on their behalf. This could easily be done by spending our time on social media or on the internet wisely.
Summary; many young people can come together with different kind of skills and form a cooperative. A powerful way is to use technology to aggregate.