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NGO- Opportunities with Developing Countries

Scenario/synopsis

A nongovernmental organization (NGO) can take on many different roles and purposes. It is typically a not-for-profit organization that commonly starts in a place where there is a great need the NGOs services. At its earliest stages, it is a relief organization, such as OXFAM International, which is a confederation of independent community-based organizations serving the poor in more than 100 countries.

In later development stages, an NGO may become a political lobbyist or a model for business development. AMMANET is a research group that looks at coordinating efforts to improve crop production in Africa. Their research could become the door opener for a startup company.

An NGO could become self-reliant and in effect become a business without the need for grants. Many micro credit-financing efforts have started on a single loan and turned into a bank. Witness the recent Nobel peace prizewinner, Muhammad Yunus, who initiated a project in 1976 by granting a collateral-free loan of nine dollars to help a woman build a business in Bangladesh. Today that effort has evolved into the Grameen Foundation and Bank, which has almost seven million borrowers and over 2,000 branches and claims a 98 percent repayment rate.

Your challenge in this debate is to consider the relationship between for-profit and the not-for-profit worlds. Is an NGO a good way to open a business in a country that is not your own?

Do not forget the cultural issues. Would Muhammad have been as successful if his first loan was to woman in the U.S.? You may want to read more about his partnerships with technology. Consider consulting the internet for further resources.

Solution Preview

Opening any business is a challenge. When trying to open an NGO it becomes increasingly difficult as compared to opening a for- profit organization that is typically funded by multiple investors who are driven by the desire to make money. The success of non-profit organizations is dependent on many factors that are more challenging in many cases then a for-profit business. For example, to establish an NGO, it has to be based on a concept that benefits some factor in society, some definable cause, or is perceived to be beneficial to a specific meaning that is not motivated by money. In addition, to get the NGO off the ground, the concept or stated purpose of the NGO will have to gain support by others to become established (Hospice Management Advisor, 2011).

Typically an NGO will be supported by grants or loans, or in many cases the primary support and functions will be funded through donations by for- profit businesses or private donors who agree with ...

Solution Summary

The success of non-profit organizations is dependent on many factors that are more challenging in many cases then a for-profit business. For example, to establish an NGO, it has to be based on a concept that benefits some factor in society, some definable cause, or is perceived to be beneficial to a specific meaning that is not motivated by money. In addition, to get the NGO off the ground, the concept or stated purpose of the NGO will have to gain support by others to become established (Hospice Management Advisor, 2011).

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