Project on Modern Business Management in some selected towns of

Bale Zone

A project proposal
Submitted by: Gezahagn Sime (Assistant professor)
Fasil Ejigu (Assistant professor)
Dr. Tefei Deyu
Tefera Balcha (MSc in Accounting)

Submitted to

Research Community Engagement and

Technology Transfer President Office
Madda Walabu University

October 2019

BALE ROBE, ETHIOPIA

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 Project on Modern Business Management

Declaration
We, researchers, declare that this project proposal is our own original work. As far as we
know, it has not been presented nor submitted for any University/ institutions/ or any
college for any fellowship or publication. We also declare that the resources and the
sources used in this proposal are duly acknowledged in the text and in the references.

________________ _________________
__________________

Principal Investigator Director, College of Business and Economics Research Coordinator Theme

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 Project on Modern Business Management

Mada Walabu University

Research and Publication Directorate

Project Approval Format

PROJECT TITLE: MODERN BUSINESS MANAGEMENT IN SOME SELECTED
TOWN OF BALE ZONE
Project implementation area: Goba, Ginnir, and Delo Mena Towns of Bale Zone
Research code (by RCSD):________________________
Starting date: Completion date:
Principal investigator: Gezahegn Sime( Assistant professor)

Reporting period: ______________________________________

Progress report Progress report Progress report Progress report Final report
1 2 3 4

Confirmation statement of the proposal investigators:

We certify that the project is original and we will implement the proposal as it is
proposed.
Co-investigators: Fasil Ejigu (Assistant professor)
Dr Teferi Deyu
Tefera Balcha
Budget covering Mada Walabu University: Br.651,646.80
Name: ________________ Name: ______________
Signature: _____________ Signature: ___________
Date: ............................. Date: .............................
Principal Investigator RCSD Director

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 Project on Modern Business Management

EXECUTIVE SUMMARY
In competitive business environment, Entrepreneurs to establish and lead their own organization

they need to have required knowledge and skills that help them to make a good decision as well

as to sustain their business in the long run. so that our projects plan to address the knowledge

and skill gap on (1) Organizing and Financing Modern Business, (2) Business growth strategy,

(3) Accounting and Its Roles in Modern Business, taking the time constraint into consideration.

4. Tax and legislation related issues. Thus, the project will strive to bring a transformational

change in the development and growth of traders through modern business management

training,. The project will be carried out in sponsorship of Madda Walabu University with the

expected output of equipping the trainees with different principles and Concepts of Modern

business. The expected outcome of this project is that implementation of Modern Business

concepts and activities such as development of Good Business plan to expand, good customer

handling, Using Book of accounts, selection of appropriate financing sources. To achieve the

above stated results, the project will expect a total of Br.651,646.80 Ethiopian birr to be covered

by the hosting institution

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 Project on Modern Business Management

TABLE OF CONTENTS

Declaration..........................................................................................................................2

Research Approval Format..................................................................................................3

EXECUTIVE SUMMARY.................................................................................................4

Project rationales.................................................................................................................7

2.1 Statement of the problem...........................................................................................7

Stakeholders and Target Beneficiaries........................................................................7

2.3. Project Justification......................................................................................................8

3. Project Goal and objectives.............................................................................................9

3.1 Project Goal:..............................................................................................................9

3.2. Immediate Objectives of the Project:...........................................................................9

4.1 Project Activities......................................................................................................9

4.2 Work plan...............................................................................................................10

4.3 Project Implementation Management Strategy.................................................11

4.3.2 Project sustainability........................................................................................11

5. Risks and Assumptions..................................................................................................11

6. Expected project results.................................................................................................12

6.1 Outputs of the project...........................................................................................12

6.2 Outcomes of the Project........................................................................................13

6.3 Impacts of the project..............................................................................................13

7. Project Monitoring and Evaluations..............................................................................13

8. Budget Break down of the project.................................................................................13

8.2 Budget Break Down For Phase – II Training (Goba)..............................................14

8.3 Budget Break Down For Phase – III Training (Ginir)............................................16

8.3 Budget Break Down For Phase – IV Training (Dello Mena)..................................17

8.5 Budget summary for the whole training......................................................................19

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 Project on Modern Business Management

Background of the project

In making decisions, entrepreneurs need to be as fully aware as possible of the

underlying economic situation, both in terms of general economic conditions, and in
terms of the specifics of the particular venture. In order to remain profitable, businesses
must be aware of the conditions in the particular market(s) in which they trade. They
should be fully aware of the costs they are currently incurring, as well as the current and
future prices they expect to be able to charge. Much of this information should be
available if records are kept of the historical transactions in which the business engages.
Indeed, it is difficult to see how decisions can be made effectively unless records of this
sort are kept.

Business decision making usually involves choices between alternative courses of action.
These alternative courses of action are often subject to constraints of various types.
Alternatives are then evaluated, and the decision made. It is usual to then monitor or
check the actual decision to see whether in fact the results were in line with what was
expected. If not, questions need to be asked. Monitoring can provide useful insights into
what went wrong and how to rectify it.

Our answers to the above questions will strongly influence and be influenced by the legal
business form we are going to select. However, that form may change with growth and
needs of the enterprise. One example of a form changing would be a sole proprietorship
might be evolved into a partnership (which could add shared expertise and resources) and
then to a corporate structure, which could enhance management continuity and financing
capabilities (if shares are sold).

Many factors must be considered when choosing the best form of business ownership or
structure. The choice businessmen make can have an impact on multiple aspects of their
business, including taxes, liability and ownership succession.

When organizing a new business, it is important to take time to review the pros and cons
of each structure. Basically, the form of organization depends on the type of business,
how many owners or investors are involved and how tax and liability issues will best be
handled. Some businesses, especially for tax and liability reasons, will want to
incorporate from the beginning. Others may operate for their lifetime as sole
proprietorships. Any time two or more unrelated people are involved in a business, they

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 Project on Modern Business Management

will probably want to create some type of partnership agreement or a corporation. If we

are considering this option, get help from a tax and legal expert.

Accounting is concerned with the provision of economic information that will be useful
to those directly (and to some extent indirectly) connected with an organisation. The
information provided should be useful in assessing both the performance of those who
manage the organisation and the performance and position of the organisation itself.
Once the interested parties have made these assessments, they will be in a position to
make more informed economic decisions concerning the organisation.

Project rationales
2.1 Statement of the problem
A training program is the answer to jump-starting the business. The right kind of training
program can help a small-business owner to elevate the performance of his/her company
and its employees from good to great and even excellent as it usually stated by scholars
in management. Taking this fact into consideration, we are attempting to provide short-
term trainings to local businessmen or traders who are actively engaging in the business

In order to promote the overall business in Bale Zone, particularly in Goba, Ginir and
Dello towns in particular to make decisions, giving training is most pressing need and
unquestionable issue.

The training will be initiated by Zone revenue office by identifying skill gaps of traders.
Based on this to equip the traders knowledge and skills in Goba, Ginir and Dello towns
and woredas with this and other, we have planned to offer short-term training on four
topics: (1) Organizing and Financing Modern Business, (2) Business growth strategy, (3)
Accounting and Its Roles in Modern Business, taking the time constraint into
consideration. 4. Tax and legislation related issues

Stakeholders and Target Beneficiaries

The project directly and indirectly benefited different bodies such as government, private
and public organization, city and zonal trade and industry offices, Small-Medium
enterprise, and societies in general. The project will consider small- medium enterprises
in Goba, Ginir and Dello. The project only reflects on 1103 small-medium enterprise that
will select from each stratum. Moreover, the project’, will invite trade and industry

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administrations. The project is arises to strengthen small and medium enterprises

concerning Organizing and Financing Modern Business, Business Expansion,
Accounting and Its Roles and enhance awareness on tax related issues in Modern
Business in the selected areas.

2.3. Project Justification

Entrepreneurial activity has been increasing constantly over the past two decades in Bale
Zone specifically, Goba, Ginir and Dello. In this areas the absolute volume of ‘business
start-ups’ has been vast, and the number of new entrepreneurs participate in every facet
of the commercial market as to compare with the previous periods. Recently, the
government takes structural changes at the nationally level these providing new
opportunities for Small-Medium enterprise owners in this Zone. In the past the
perceptions of Small-Medium enterprises and their role in economic development has
transformed considerably. There has been a considerable increase in the number of these
enterprises in Ethiopia, particularly, Bale Zone. The importance and problems of these
enterprises in modern economy mainly, Bale Zone cannot be overlooked as result project
on entrepreneurship is demanding task in Goba, Ginir and Dello. Similar training was
given before five years ago granted by our Universities and impact analysis also done.
The study of training on impact analysis on modern business Management by
Dagnu(2007) reveal that the sustainability of such training is very improntant for
business owners as well as for the community at large. More over business owners and
trade and industry development office of each woredas requests to sustain the training.
Therefore, there is the need to improve the activities of Small-Medium enterprise and
decrease the problems of these enterprises in selected environment.

It is vital to develop small and medium owners in the initial stages as they are the
decision makers
Enhance businessmen with self confidence and higher self esteem which aid them
in implementing basic management functions.
It will be facilitating small and medium enterprises to experience a wholesome
image of them.
Increase visibility of successful business men.

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3. Project Goal and objectives

3.1 Project Goal:
The goal of the project is to enhance traders concerning modern business principles and
concepts in Dinsho, Agarfa, Gasera, Goro, Berbere, Guradamole, meda Walabu, Harena
Buluq, Gololecha, Legehidha, Seweina, Rayetu, Dawe qachen, Dawe serer,Goba, Ginir
and Dello Woredas .

3.2. Immediate Objectives of the Project:

To strength participants how to organize the new business
To familiarize them with the factors to be considered while starting business.
Enable the participants to identify the source of finance to start and expand their
business
To improve their accounting practice, and management functions
To upgrade the decision-making capacity of the businessperson.
To enhance the knowledge of tax
To enhance the knowledge of using Cash register Machine

4. Project Implementation and Management Plan

4.1 Project Activities

The project activity is classified into three major activities: “arrangements about trainers,
participants, materials and venue.” The detailed are depicted under the following table:
Objectives of the activities Activities Responsibly
Bodies
To prepare proposal and submitted to 1. Arrangements about trainers
directorate The project
To indentify the trainers team and
To prepare necessary logistics Research Direc
To review  trainer’s guide, edit Manual torate of MWU
To finalize preparation power points and
overhead projectors
To follow-up with Participants at the end of
the project
To write report on the outcome for the
research and community service director

To indentify the target participants Project
To prepare, send out and follow up invitation 2. Arrangements about Manager and
letter participants Team, trade
To prepare certificate for the trainees and industry
offices

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 Project on Modern Business Management

To arrange venue for the project (room, 1. Arrangements about materia the team and re

coffee, lunch etc) ls and venue search and com
To prepare necessary equipments and munity
stationary directorate of
To make copies of manual, power points MWU

4.2 Work plan

Table 2: Activity, months and responsibly bodies

Activity Months Responsible

bodies
1.Arrangement about facilitators/team Nov Dec Jan Feb Mar
1.1. prepare and submit proposal Team
1.2. Prepare necessary logistics Team
1.3 Edit manuals Team
1.4 Finalize preparation of manual Team
1.5 Finalize preparation power points Team
1.6 Provide training Team
1.7 Follow-up with Participants Team
1.8 Report writing on the outcome to the research Team
and community service directorate
2. Arrangement about participants
2.1. Indentify the target participants Team,
coordinators
Trade and
industry
offices
2.2. Prepare invitation letter Team
&coordinators
2.3. Send out invitation on letters Director
2.5. Follow up invitation on letters Team and
Director
2.8. Prepare certificate Director
2.9. provide certificate Director &
MWU
3. Arrangement about material, venue,
etc
3.1. Arrangements venue for the training(room, Team and
coffee) coordinators
3.2.Prepare necessary equipments and stationary Team

4.3 Project Implementation Management Strategy

4.3.1 Project Implementation strategy

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To implement this project as indicated above first the training manual will be edited and
by contacting concerned parties (The municipality and trade and industry offices)
selection of traders for training will undertake. Having these, training will be offered to
different 1103 small traders from Dinsho, Agarfa, Gasera, Goro, Berbere, Guradamole,
meda Walabu, Harena Buluq, Gololecha, Legehidha, Seweina, Rayetu, Dawe qachen,
Dawe serer,Goba, Ginir and Dello Woredas Towns and Woreda of Bale Zone. So, from
each of the Woreda and towns the number of trainees will be selected.

S/ Woreda/Town Participant Woredas/Towns Total Training

n Traderes Office Leaders Trainee Cluster
Rank A & B
&Coordinators
1 Zone Leaders & Coordinators 6 2 8 Goba Town
2 Sinana Woreda Revenue Authority 50 2 52 Goba Town
3 Dinsho Woreda Revenue Authority 16 2 18 Goba Town
4 Agarfa Woreda Revenue Authority 85 2 87 Goba Town
5 Gasara Woreda Revenue Authority 39 2 41 Goba Town
6 Goro Woreda Revenue Authority 26 2 28 Goba Town
7 Barbare Woreda Revenue Authority 47 2 49 Goba Town
8 GuradamoleWoreda Revenue 9 2 11 Goba Town
Authority
9 Goba Woreda Revenue Authority 3 2 5 Goba Town
10 Goba Town Revenue Authority 280 2 282 Goba Town
11 Madda Walabu Woreda Revenue 18 2 20 Dalomena Town
Authority
12 Harana Buluk Woreda Revenue Authority26 2 28 Dalomena Town
13 Dalomena Woreda Revenue Authority 112 2 114 Dalomena Town
14 Gololcha Woreda Revenue Authority 67 2 69 Ginir Town
15 Lega Hida Woreda Revenue Authority 8 2 10 Ginir Town
16 Sawena Woreda Revenue Authority 12 2 14 Ginir Town
17 Rayitu Woreda Revenue Authority 6 2 8 Ginir Town
18 Dawe Kachen Woreda Revenue Authority 5 2 7 Ginir Town
19 Dawe Sarer Woreda Revenue 3 2 5 Ginir Town
Authority
20 Ginir Woreda Revenue Authority 75 2 77 Ginir Town
21 Ginir Town Revenue Authority 168 2 170 Ginir Town
Total 1061 42 1103
The above table shows selected traders from By zone Revenue from the respective
woreda. From this the total number of trainee in Goba cluster is 581. So to be
manageable we divide in to two phases. In phase 1, 282 trainee will be trainee and on
phase 2, 299 trainee expected to participate in the training. After completing the training
in Goba woreda third phase and fourth phase of the project is Going on Dello and Dinsho
wereda.

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The following table shows the total number of trainee based on Cluster

Goba Cluster Dello Cluster Giner Cluster Total

581 162 360 1103

To address the project objective the team will be employed: power point presentation,
discussion (peer-discussion, group discussion), experience sharing, visual aids and
reflection by trainees.

4.3.2 Project sustainability

The project is sustained in nature because modern business is a key for current economic
development and business expansion in Ethiopia particularly, Bale Zone. As it mentioned
previously this project is the continuation of last year work and it is still expected to
continue in the future and extended to different parts of the countries.

5. Risks and Assumptions

In the achievement of the project objectives, the journey to be started is not without
uncertainty. Some of these risks and assumptions may be

Assumptions

All concerned government bodies will not be committed to fully engaged in the
overall program initiatives and provide technical support required to ensure the
smooth implementation and hence realization of the project objectives
The existence of highly committed and harmony among group members.
Timely release of budget from research and community service directorate

Risks

Delay of budget release from research and community service directorate

Burden of tasks in project participants.
Lack of interest by the participants to participate in the training
Conflict among the team members
Venue
Inflation may present changes to the budget

Risk Matrix

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Risks Impacts Probabilit Mitigations

y
Delay of budget It use time which may result Low Doing cooperative with
release delay in editing manuals, MWU research and Community
preparation of power points services directorate
Lack of interest by the pa The project not   completed Low Publicizing the benefit of the project
rticipants to participate according to schedule,
in the training
Conflict among It outcome is delay and wastage Med Tolerance and Respect the project
the team members of resources manager decisions

Venue It result delay and termination med Arrange before starting the seminar
of the project and doing with coordinator and trade
and industry offices

Inflation may present It result challenge in low Use the contingencies

changes to the budget accomplishing the project
objectives

6. Expected project results

The results of this project can be seen in three ways based on the extent and time of the
benefits from the results. These are

6.1 Outputs of the project

The immediate result of this project is highly equipping the trainees with different
principles and Concepts of Modern business.

6.2 Outcomes of the Project

The participants of the training engage in implementation of Modern Business concepts
and activities such as development of Good Business plan to expand, good customer
handling, Using Book of accounts, selection of appropriate financing sources.

6.3 Impacts of the project

Making available successful business man who get good profit and contribute to the
development of the Country.

7. Project Monitoring and Evaluations

This project will be monitored throughout its life by research and community service
Directorate of Madawalabu University and project coordinators. The progress report will
made at the sub section activities to the funding party and also the party follows up the
implementation of the project as per plan. Besides, the project implementers or
coordinators monitor their activities and activities of the other members in project. Based

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on such continuous follow up and monitoring and reports of each activity, project will be
evaluated by the coordinators and the research offices periodically.

8. Budget Break down of the project

Table 8.1: Budget schedule for Goba Cluster Phase 1

No. Description Measurement/day Quantity Unit price Total cost in Br.

1. Collaborators 1 3 day 5 171 2,565
2. Professional fee2 3 days 5 600 9,000
3. Facilitators 3 days 5 171 2,565
4. Coordinators 28 days 4 179 20,048
5. Banner 1 4 1,500 6,000
6. Lunch perdiam for 3 days 282 50 42,300
Goba
Trainees perdiam for 5 days 18 124 11,160
Dinsho
Trainee transport from 2 days 18 21 756
Dinso
7. Stationary: Dozen 27 200 5,400
Sinar line notebook
Pack 5 350 2,450
lexi pen
8. Refreshement Dozen 50 150 7,500
Elsa kolo kg 10 130 1,300
Total 111,044
Contingency (5%) 5,552.20
Grand total 116,596.20

1
Refers to individuals who will assist in loading and unloading materials as well as distributing training
facilities
2
The ratio of trainer to trainees is assumed to be 1:65 of which 3 days is assigned for 1 group

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Table 8.2: Budget schedule for Goba Cluster Phase 2

No. Description Measurement/d Quantity Unit price Total cost in

ay Br.
1. Collaborators 3 3 day 5 171 2,565
2. Professional fee4 3 days 5 600 9,000
3. Facilitators 3 days 5 171 2,565
5. Trainees perdiam for Sinana 3 days 52 50 7,800
Trainees perdiam for Agarfa 5 days 87 124 53,940
Trainees perdiam for Gasera 5 days 41 124 25,420
Trainees perdiam for Goro 5 days 28 124 17,360
Trainees perdiam for Guradhamole 5 days 11 124 6,820
Trainees Lunch perdiam for Goba 3 days 5 50 750
Trainees Lunch perdiam for Zone Co 3 days 8 50 1,200
Trainees perdiam for Berber 5 days 49 124 30,380
Trainee transport from Sinana 2 days 52 60 6,240
Trainee transport from Agarfa 2 days 87 55 9,570
Trainee transport from Gasera 2 days 41 75 6,150
Trainee transport from Goro 2 days 28 65 3,640
Trainee transport from Guradhamole 2 days 11 112 2,464
Trainee transport from Berber 2 days 49 152 14,896
7. Stationary: Dozen 27 200 5,400
Sinar line notebook
Pack 5 350 1,750
lexi pen
8. Refreshement Dozen 50 150 7,500
Elsa kolo kg 10 130 1,300
Total 216,710
Contingency (5%) 10,835.5
Grand total 227,545.5

3
Refers to individuals who will assist in loading and unloading materials as well as distributing training
facilities
4
The ratio of trainer to trainees is assumed to be 1:65 of which 3 days is assigned for 1 group

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Table 8.3: Budget schedule for Dello Cluster

No Description Measurement/d Quantity Unit price Total cost in

. ay Br.
1. Collaborators 5 3 day 5 171 2,565
2. Professional fee6 3 days 5 600 9,000
3. Facilitators 3 days 5 179 2,565
5. Trainees perdiam for madawaelabu 5 days 20 124 12,400
Trainees perdiam for haranabuluq 5 days 28 124 17,360
Trainees Lunch perdiam for Dello 3 days 114 50 17,100
Trainee transport from madawalabu 2 days 20 100 4,000
Trainee transport from haranabuluq 2 days 28 60 3,360
7. Stationary: Dozen 15 200 3,000
Sinar line notebook
Pack 3 350 1,050
lexi pen
8. Refreshement Dozen 25 150 3,750
Elsa kolo kg 8 130 1,040
Total 77,190
Contingency (5%) 3,859.5
Grand total 81,049.50

5
Refers to individuals who will assist in loading and unloading materials as well as distributing training
facilities
6
The ratio of trainer to trainees is assumed to be 1:65 of which 3 days is assigned for 1 group

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Table 8.4: Budget schedule for Giner Cluster

No Description Measurement/d Quantity Unit price Total cost in

. ay Br.
7
1. Collaborators 3 day 5 171 2,565
2. Professional fee8 3 days 5 600 9,000
3. Facilitators 3 days 5 171 2,565
5. Trainees perdiam for Gololecha woreda 5 days 69 124 42,780
Trainees perdiam for legehida 5 days 10 124 6,200
Trainees perdiam for sewaiena 5 days 14 124 8,680
Trainees perdiam for Rayetu 5 days 8 124 4960
Trainees perdiam for Daweqachen 5 days 7 124 4340
Trainees perdiam for Daweserere 5 days 5 124 3100
Trainees perdiam for Giner woreda 5 days 77 124 47,740
Trainees lunchperdiam for Giner 3 days 170 50 25,500
woreda
Trainees Transport for Golelecha 2 days 69 100 13,800
Trainees Transport for Legehidha 2 days 10 200 4,000
Trainees Transport for Seweina 2 days 14 179 5012
Trainees Transport for Rayetu 2 days 8 200 3200
Trainees Transport for Daweserere 2 days 5 200 2000
Trainees Transport for Dawe qachen 2 days 7 200 2800
Trainees Transport for Ginir 2 days 77 70 10,780
7. Stationary: Dozen 27 200 5,400
Sinar line notebook
Pack 5 350 2450
lexi pen
8. Refreshement Dozen 50 150 7,500
Elsa kolo kg 10 130 1300
Total 215,672
Contingency (5%) 10,783.6
Grand total 226,455.6

7
Refers to individuals who will assist in loading and unloading materials as well as distributing training
facilities
8
The ratio of trainer to trainees is assumed to be 1:65 of which 3 days is assigned for 1 group

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Table 8: 5 Budget summary for the whole training

Training phase Place Total Cost Remark

of
Trainin
g
Goba Cluster Phase 1 Goba Br.116,596.20

Goba Cluster Phase 1 Goba Br. 227,545.50

Dello Cluster Dello Br. 81,049. 50

Giner Cluster Ginner Br. 226,455.60

Total Br.651,646.80

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Coates, G. (2009). Notes on Communication: A Few Thoughts Aout the Way We Interact
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GVEP International. (2010). Training Manual for Micro, Small, and Medium
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The Economist. (2007, November 1). The Economist. Retrieved October 4, 2014, from
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UNESCO. (2006). Starting My Own Small Business. A training guide on

entrepreneurship . Paris: UNESCO.

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United Nations Development Program. (2012). Entrepreneurship Development

Programme in Ethiopia. Addis Ababa: UNDP.

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