GUIDELINES FOR DESIGNING A CONSTITUTION FOR ENTREPRENEURSHIP GROUP

               Constitution for small entrepreneurship groups it is the set of rules and agreement that facilitate and guides the operations of a certain group of people organized together to perform the common objectives.These small groupings work together with the common goal. Without set of agreed rules the entrepreneurship group may follow into conflict. For the people who form a company they are obliged to prepare articles of association and memorandum of understanding. Before going to company registration we have to start with small entrepreneurship group that needs registration at the local levels. This reveals the dos and don'ts in the operation of collective activity toward agreed objectives.
          I write these tips necessary for designing a constitution of entrepreneurship group due to my experience I have in assessing the constitutions of the group during formalization of community based groups. This article shall provide the insight in showing the proper and basics for effective and agreeable constitution. 

             The following  tips  are engine for effective and agreeable group constitution:- 
                                                                   PART ONE

         This is an introductory part that shows the name of the organization or group. It tells the name of the group, area of operation, the status of the organization (profit making organization or non-profit making organization, faith based or not, affiliated with ideology of political party or not and if the organization is governmental or non governmental organization.

          Clear clarification of the status and nature of the activity (operations) makes easier for register  or any officers with the mandate for registration.
                                                               PART TWO

           This part covers the vision, mission and specific objectives  of the entrepreneurship group being established. The vision for the organization implies the general goal for establishment of the organization. It is expected desire vested to the thinking for established group. Generally the vision or goal statement it is the dream that the members want to attain. It is a long term objective as vision can not be attained in a single day, it needs time accompanied with strong commitment.

             Mission statement is all about what is intended to be done for achieving the dream. It includes  action that needs to be undertaken in reaching the group goal. In the constitution of the group this needs to be considered. Having a vision without strategies and mechanism toward it is like planning the destiny without knowing the route. Specific objectives these are objectives that needs to be undertaken toward the goal of the organization. Clarity of organization objectives gives the credit for attracting many partners during implementation. This part may make easier for the established entrepreneurship group to get grant or to be easily access of the loan.

     PART THREE

          This in a constitution of entrepreneurship group indicates issues of membership. The category of membership, procedures, responsibilities and rights of members needs to be clarified in the constitution. To make it clear ownership for group organization must belong to all members therefore the power should be held by all members. If there is entry fees and monthly or annual subscription fees needs to be known to all and the amount must be equal unless general meeting decides otherwise. Also cessation and criteria are stipulated here.

       PART FOUR

    MANAGEMENT OF THE ORGANIZATION

              This is very sensitive part that needs wisdom and clear description because it is the part where conflicts arise in many groups that follow down. Here organization structure is shown. The duration of leaders, selection process and voting style must be explained properly. Also positions and duties for every position are shown on this part.

                 PART FIVE

FINANCIAL MANAGEMENT

          This is another sensitive part which may lead into conflict when not designed well. This part includes sources of fund for organization and distribution of profits obtained through group investment. It shows place and mechanisms of storing the organization or group revenue. In most cases money for the group needs to be saved  at the bank and there should be acceptable signatories selected by members and these signatories must be introduced to bank managers where they are to produce their identity cards and curriculum vitae.

         This part also must show on how the fund of the group shall be used by introducing their own financial policy.

           PART SIX

MEETINGS

           The constitution of the group must show meetings on how are to be undertaken. The meetings includes Annual General Meeting (AGM)  that is done annually and ordinary meeting. Any decision to be valid must pass through  general meeting that includes all members of the group.

        PART SEVEN

            This part shows grounds for winding up the organization. It states clearly on procedures for winding up the organization and distribution procedures for group assets.  

              PART EIGHT

          This is the last part of the group constitution that shows the passing of the constitution. At this part statement that indicates resolution of the constitution is shown and members who have passed the constitution with their names, tittle (positions) and signature.

           The steps above are summaries for group constitution and every entrepreneurship group that want to be sustainable must abide to those procedures. The experience shows that all organizations that does not abide to above procedure does not live longer , they always follow before reaching their dreams. Also of more important considering of the guidelines above reduce the conflicts in the group and make the group to grow bigger and bigger.

         Do not hesitate to contact us for more effective consultancy services on management of  entrepreneurship group  that aims to grow from small entrepreneurship group to bigger company.

By Godfrey Vedasto
Entrepreneurship and Psychology Consultant

+255712135799/+255789915677

gkanjara@gmail.com, gdfreyveda@yahoo.com

www.godfreykanjara.blogspot.com