3.3 Business Types and Mission Statements

Muzukuke! Great to see you all. Last time we dug deep into understanding who your app is for with market research.

Now, we’re taking the next big step in shaping your project for the competition: defining what kind of business your brilliant idea will be and crafting its Mission Statement.

Think of this as building the skeleton and the heart of your project’s plan. This is crucial for your business plan submission in the competition – it shows the judges you’ve thought seriously about how your app will work in the real world and make a lasting impact here in Uganda.

Lesson Topic: Business Types and Mission Statements

Part 1: What Do We Mean by “Business” Here?

When you hear “business,” you might think of big names like MTN or Stanbic Bank, or maybe the local duka (shop), a boda-boda driver providing a service, or even a large farm like Kakira Sugar.

Simply put, a Business is anyone or any organization doing something (making/selling goods or providing services) usually in exchange for something else (often money, but sometimes other benefits).

• Goods Example: A company in Namanve Industrial Park making plastic chairs.
• Service Example: An ICT company in Kampala providing website design services, or SafeBoda providing transport services.

And yes, young people like you start businesses! The lesson mentioned Megan from Malaysia; think about young Ugandans starting online boutiques on Instagram, offering graphic design skills, or even developing small tech solutions.

Part 2: Goals – Is it ALL About the Shillings?

Naturally, businesses need money (Profit) to survive and grow. You need money to pay for servers, data, maybe transport to meet users, or even eventually hire people.

However, especially for projects like yours aimed at solving community problems, businesses often have goals beyond just profit:

• Social Goals: Like your Technovation projects! Maybe your goal is improving maternal health information access, reducing post-harvest losses for farmers in your district, or increasing digital literacy among youth.
• Business Goals: Maybe you aim to create the most user-friendly agricultural app in East Africa, or provide the most reliable market information service, using eco-friendly servers.

The Key Idea: No matter the main goal, every project needs a way to bring in some money or resources to keep running sustainably. You can’t help people tomorrow if your app shuts down today due to lack of funds.

Part 3: The Three Main Flavours of Business

There are different ways to structure your project based on its primary goals and how it handles money. Let’s look at the three main types:

1. For-Profit Business:
   • Main Goal: To make money (profit) for its owners or shareholders.
   • How it Works: Sells goods or services for more than they cost to produce/deliver. Profits can be reinvested to grow the business or distributed to owners.
   • Ugandan Examples: MTN Uganda, Cafe Javas, Mukwano Group, most private shops, clinics, tech startups aiming for large scale and investment.
   • Pros: Clear focus on growth and efficiency, potentially easier to attract investment.
   • Cons: Social mission might take a backseat if profit targets aren’t met; perception might be less community-focused.

1. Non-Profit Business (or NGO – Non-Governmental Organisation):
   • Main Goal: To address a specific social problem or cause (e.g., education, health, environment). Making a profit is NOT the goal.
   • How it Works: Relies on donations, grants (from government or international donors), or fundraising activities. Any surplus money generated (“profit”) MUST be reinvested back into achieving the mission, not distributed to owners.
   • Ugandan Examples: KAWA Uganda, BRAC Uganda (focuses on poverty alleviation, health, education), Watoto Child Care Ministries, local Community Based Organisations (CBOs), focused on specific village needs, maybe even your school’s wildlife club if it fundraises for conservation. Technovation itself is a non-profit!
   • Pros: Strong mission focus, eligible for grants/donations, often high community trust.
   • Cons: Can be heavily reliant on external funding (which can be unstable), decision-making might be slower (board approvals).

1. Social Enterprise (The Hybrid Model):
   • Main Goal: To achieve a specific social or environmental mission while also generating revenue through business activities. It blends purpose and profit.
   • How it Works: Sells goods or services like a for-profit business, but explicitly uses a significant portion of its profits to fund its social mission or reinvest in the community impact.
   • Ugandan Examples: Winnie’s Morogoro Cocopeat (selling farming products to help farmers), perhaps a craft collective that sells high-quality baskets and uses profits to train more women weavers, a company selling solar lamps affordably in rural areas and reinvesting in local technicians, or an app providing exam revision notes at a small fee but using profits to offer free access to students in refugee settlements. Many Technovation projects fit well here!
   • Pros: Sustainable way to fund social impact (less reliant on donations), can attract impact investors, combines business efficiency with social purpose.
   • Cons: Can be challenging to balance the social mission and financial goals (“mission drift” is a risk), might be more complex to manage.

Part 4: Activity 1 – Choose Your Business Type (Team Discussion – 20 mins)

Okay Seniors, get together with your team. Grab a notebook or open a document. Discuss and write down your thoughts on these questions:

1. What’s your BIG dream for this project? Beyond just building an app, what impact do you want to make in your community or Uganda? (e.g., “We want to see fewer mothers lack basic health info,” “We want farmers in our village to earn 20% more.”)
2. What are the specific goals? List 2-3 key goals (e.g., “Reach 1000 users in Jinja,” “Reduce exam stress for S4 students,” “Provide accurate daily prices for 5 key crops.”)
3. How will this keep running long-term (Sustainability)? Think realistically. Will you charge users a small fee? Show ads? Seek grants? Partner with a local company? Sell data insights (anonymously and ethically)?
4. Based on this, which type feels right? For-Profit, Non-Profit, or Social Enterprise? Why?

Important: You don’t need final, perfect answers today. This is about starting the conversation. You can revisit and even change this decision as your project develops. The key is to think about it intentionally.

Part 5: Your Business Heartbeat – The Mission Statement

Once you have an idea of your business type and goals, you need to capture the essence of your project in a Mission Statement.

What is it? A short, clear, memorable sentence (or two) that summarizes:

• Who your organization serves.
• What it does.
• How it does it (or what makes it unique).
• Why it matters (its core purpose/value).

Why is it crucial?

• It keeps your team focused on the main goal.
• It helps you make decisions (Does this new feature fit our mission?).
• It communicates your value clearly to users, partners, and judges!
• It’s the “heart” of your business identity.

Keep it: Short, Simple, Powerful.

Examples (with a Ugandan spin):

• Nike (For-Profit): “To bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)” – Focuses on broad reach, inspiration, innovation.
• Feeding America (Non-Profit): “To advance change in America by ensuring equitable access to nutritious food for all in partnership with food banks, policymakers, supporters, and the communities we ¹ serve.” – Focuses on the problem (hunger), the method (partnership, access), and the target (all).  

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• Patagonia (Social Enterprise): “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” – Blends product quality with clear environmental mission.

Let’s create some plausible Ugandan examples:

• (Made-up For-Profit – E.g., Fintech App): “To provide Ugandan small businesses with simple, affordable digital tools to manage their finances and access growth opportunities.” (Focus: Target market, service, value proposition)
• (Made-up Non-Profit – E.g., Health Info App): “To empower Ugandan youth with accurate and confidential sexual reproductive health information and resources through a free mobile platform.” (Focus: Target market, problem, method, value)
• (Made-up Social Enterprise – E.g., AgriTech App): “To connect smallholder farmers in Eastern Uganda to reliable market information and buyers via SMS and an app, reinvesting profits into local digital literacy training.” (Focus: Target market, dual service, impact reinvestment)

Part 6: Activity 2 – Craft Your Mission Statement (Team Task – 20 mins)

Now, your turn! As a team, draft your first mission statement.

• Aim for 1-2 sentences.
• Describe your core purpose.
• Use these questions to guide you:
  • What problem are we solving / need are we meeting? (e.g., access to information, connection, efficiency)
  • How are we doing it? (e.g., through a mobile app, a USSD service, an online platform)
  • Whom are we doing it for? (Be specific – e.g., S4 students in Wakiso, maize farmers in Gulu, pregnant mothers in Jinja)
  • What unique value or impact are we bringing? (e.g., affordability, reliability, community focus, innovation)

Write down your draft. Read it aloud. Does it sound inspiring? Is it clear? Does it truly represent your project’s heart? Refine it!

Part 7: Thinking Deeper (Reflection)

Take a few minutes to think about these points (you can discuss them briefly or note down individual thoughts):

• Why do you think these different business types (For-Profit, Non-Profit, Social Enterprise) even exist? What’s the benefit of having choices?
• What do you see as the main advantages of each type, especially in the Ugandan context?
• Which type do you currently believe is the best fit for tackling the specific community problem your team identified? Why?

Part 8: Quick Review (Key Terms)

• Business: An organization/person doing something (goods/services) often for money.
• Profit: Money earned after costs are deducted.
• Non-profit: An organization focused on a social mission, not profit for owners. Relies on donations/grants.
• Social Enterprise: A business with a social mission, using profits to fuel that mission.
• For-Profit: A business whose primary goal is making money.
• Mission Statement: A short, formal summary of an organization’s core purpose, values, and impact.

Part 9: Additional Resources

Watch this video explaining social enterprises more – definitely watch that if the concept is still a bit fuzzy. It’s often a great model for Technovation projects.

Conclusion

Well done, Seniors! You’ve now thought about the fundamental structure and purpose of your venture. Choosing a business type and crafting a mission statement are essential building blocks for your business plan and overall strategy. It shows maturity and a clear vision.

• Your Task: Finalize your team’s answers for Activity 1 and write a strong draft of your Mission Statement (Activity 2). Keep these safe – you’ll need them!
• Remember: This guides your journey. Refer back to your mission statement often!

Keep up the fantastic work. You’re not just coding; you’re building potential businesses and solutions for Uganda! Mwe Mwebaaze! (Thank you all!) Let me know if you have questions as you work through this.