Understanding Business Registration, Alliances, and Joint Ventures in Entrepreneurship

[Music] good morning students um this ad from the Department of Business

Administration we are on lecture six and we are still on ENT 211 which is entrepreneurship and

Innovation so the topic for today is business recognition and business registration foring alliances and joint

venture that is what we want to look at in today's class in today's lecture so we

are looking at the business registration the forming of alliances and the joint venture let's take them one after the

other starting with the business registration what we mean by this business registration is because if you

have a business you have a company you are running you need to register your business under CAC the CAC I'm talking

about is not the First Apostolic church but we are talking about the corporate Affair commission that is where you can

register your business or your company and the reason why you are registering this business is just to have a legal

backing to be registered under law all activities that you'll be involved in in that business will be legally binded and

there won't be a sort of harassment by someone no agency will just come to your sh or your company to AR you then if the

company is legally binded and registered then you are free to do some certain things and to also enjoy some

benefits the registration of this business is just for the purpose of having a legal backing just like I have

said and also it also deals with a legal a separate legal entity which separate you from your business you are the owner

and you also be separated from the organizational or the company liability so what do we mean by this business

registration it's just the formal process of establishing a business as a legal entity it's just a formal process

of establishing a business as a legal entity allowing it to operate within the regulatory framework of a given

jurisdiction so you allow you to play Within the regulatory framework the regulatory board or law within the

society or within the environment within the local government or the country where the business is being registered

so this is the process of officially establishing a business entity with the relevant government authorities like you

go to local government where you can also register your businesses we have some CAC we have CAC that

you can also apply register your business under so it's just to make the business to be formally recognize to

have a formal benefit and recognition to the essence of this business

registration is just to comply with the law within that Society within the country to comply with the law to

legitimize your business as well and also it will bring and it will bring about an access to benefit by protecting

your business under the law there are taxes that you have to pay that you also have the tax advantages and also

credibility with customers and your partners in businesses as well so the business registration is very important

when it comes to business activities because with your business business you also contribute to the economic growth

all right you contribute to the economic growth you contribute to the economic development so the business registration

is a very important aspect for every organization it could be if it is a small

business small business might not necessarily need a registration but if you if you have a you to do a

registration of your businesses the task or all all other thing that will be attached to it might not necessarily be

that compulsory or but the major thing is that it separates you from your business once the business is registered

so you are being separated as an individual and that organization as well the company so you are being separated

with the business liability so let's look at the purpose of this business registration just like

I said there are lot of purposes there are lot of reasons why people register their businesses and number one here we

have a legal protection or a legal recognition and this case of leg recognition is just to give you like a

backup a unique identity unique name a unique identity and it enable you or enable your organization to operate

within the law we have leg possession you have a leg recognition because you are identified you are recognized under

the law you have the number you have the company registration number that will be given to you so it also provide the

business with a unique identity be able to identify your business that is under the law or that is operating under the

law within that Society with that country or environment we also have tax

compliance and this ensure the business is registered for tax purposes you know your sure have the certain amount that

depending on how large or how big your company or your business is so there are taxes that will be attach to it that you

have to pay and the essence of paying tax is just to contribute to the economy growth to contribute to that local

government where your business is located you contribute to um the corporate social address of that organiz

of that environment that of that environment so the tax compliant

also part is also part of the purpose why people register their businesses just to ensure that the business is

registered for tax purposes and can obtain necessary necessary tax identification number in t that is the

tax identification number so we will also be given that number as well then we also have liability

protection and this is it shows that the after the business has been registered it protect personal asset from that of

business liability are you getting it so that is the liability protection in the case of

liability limited liability entity so the Reg protect the business owner from the

asset of the business owner from that of the business liability we also have access to funding

because when the business is being register or when the business is registered you have access to fund there

are some cases whether you need a loan you want to generate a loan from bank or from a

cooperative and Society so access to this fund this registration of bus will give you

access to fund because there are some that when you get to bank want to get a loan they has for this registration of

businesses so they'll be able to know whether it's a legitimate business that you are doing or not and also to

identify that you your business is being registered is under is register and op operating under the law so they that

will give them a proof for to give them a proof in for you to have an access to that loan from the

bank of from that investment then we also have credibility The credibility we give it

gives customers and suppliers the trust right The credibility is just that

the customer and the supplier will have trust in your businesses they have trust in your business in your company your

organistation and they'll be able to work with you because the business is been registered so they to work with you

they W be feeling like they are working with a flaw um business or business partner or

something like that so it give them the Courage the proof to have um to work with you and to trust

your business activities and and the like so that is about the credibility The credibility just like

the last time that we about performs of business ownership where we have the sorship theity company the corporation

and even Cooperative society as well the partnership so all these forms of businesses can also be registered

depending on how big or personality your own personal your personal understand

about the registration of this bus it's very important that you register your bus under the law to give you some

benefit to give you some purposes that you need to achieve in registering your business as well

then let's look at the steps in business registration when you want to register your bus you have it in mind that you

want to register your business there are some steps you need to take it's not it's not something that you

just go to a local government or you look for a CAC and where they are located and just

go there to register your business where there are steps that you need to take there are things you need to understand

there are things you need to acquire you need to know in in registering your business the first thing is that you

choose a business name and don't forget we said

this registration it separates you the owner from the business all right in that case once the business has been

registered the you can sue and all right so the first thing is to choose a business thing what name did I want to

give to my company or what name my company will be bearing you know in that case you need to do research because

there are some companies that also use the name that you have in mind so you'll be able to know this name has been in

the system I need to change the name or something must be different your own organizational name must be different

from another company because if you're are using the existing one they will not register the business for you so you get

a unique name a name that is different that will make your business unique and different from

other businesses so you Ensure the name is unique and complies with naming loes in your jurisdictions we also have to

determine the legal structure you need to determine the the legal structure that is you decide the appropriate

entity typ for your business goals you have an objective you have a legal structure you have what you want to

achieve so you must have an appropriate entry entity type of your business you also have register with the

appropriate Authority you need to register with the appropriate Authority whether by want to go

National through your federal government you want to have a federal registration just like trade mon patent or taxes or

you want to go by local or State registration where you be given license be given permit or only

you know what the license is all about what it giv you it give you an agreement your license they

give you a license to act all right so we also have to another step is to obtain a task identification

number when you are registering your number you'll be given I mean your business you be given this C which is

tax identification number and this we also assist in making sure that your your

your business is valid and is very formal under the law you also register for taxes you you have to pay taxes you

register for the taxes based on your operations we also have secure license and

permits you also secure license and also Adit then you open a business bank account after all other processes other

steps you also open a business account in that case you keep personal savings or your personal savings your personal

money away from that of your business finance you won't be missing your personal money with of your business as

well so that is the steps in business registration and let's look at the benefits of registering your business

what are the benefits you derive when register your business what are the benefit is give you what are the

achievements you'll be able to get when you register your business it gives you a liability protection or a legal

protection a legal recognition as well and also give you tax advantage it give you tax advantage into

also give you brand protection when you talking about brand a brand protection you talking about the

logo the name of your business the design of your business so it prevent others from Legally using your business

name or your business logo that is the brand protection and we also have expansion opportunities it brings about

opportunities because people see your business business they will be seeing it as the a

business that involve fla or other legal activities so it brings a about expansion opportunity because it's a

registered business and people will see it and have an ability to operate in multiple jurisdiction because you have

register you can also operate in another society and this also give rooms for Grants

it gives room for Grant of loan so you can apply for Grant apply for loan in the banking institutions and other

financial institutions as well so these are the benefits you derive in registering your business as we have the

benefit we also have the challenges when you want to register your business part of the challenges that you

might face is the cost the cost of registering your businesses depending on

the the business you are doing right so the fields that will be charged might be might be something that

is very high from your own side and that's why I said it depends on the kind of business you are dealing with or the

kind of business you are involved into so the Fe for registration you know and compliance vary by location depending on

the location you have so definitely the cost of register your business will also be

influenced by that of your location if we are in a local environment in you want to register your

business the cost that you be charged will be minimal compared to your business is located in is located Ino

state inja you know the cost of registration will be very high from that location

from that aspect from that area so we also have complexity you know paperwork are involv and the requirement

signicantly between regions and the industries so you have the complexity about the paperwork and other

requirements that will be will be has off then we also have the time

time the delay in registering your business or the delay in achieving that goals we

also it's also part of the challenges that people face when they want to register their businesses and that is

why some people will just leave it and forget about it because of the process because of the time that is involved so

delay arise due to processing time and documentation issues so in documenting the the the

activities the registration so it may take longer period before you are able to achieve that purpose so that those

are the challenges in business registration and now let's go to the concept of forming

alliances and what do we mean by this Alliance System talking about alliances just like you life you be two or more

business or company or industry to form one so just like a former agreement between two or organization or between

two or more countries or nations so that is Alliance and the forming of alliances in this form or in

this topic it means that it's a relationship all right it B is bring about

relationship between two or more countries or organization that have the same similar goals or the same similar

purpose and agree to work together in achieving this similar objective this similar

purpose and we can see this formal all foring alliances as a strategic approach all right by

achieving Mutual goals in building partnership between individual organization and the nation so this

alliances also brings about Shar interest because you are forming this relationship you are forming this

organization based on the Shar interest that you have based on the same goals the same objective that you have with

one another that is the two or more countries or between two or more organizations so it brings about the

share interest that you have in expanding your business in expanding your

organization the concept of this foring alliances also have some key important aspect where we have the share goals and

objective the two countries that want to come together to work together they must have the same purpose they must have the

same goals just like you forming a business with someone with a partner that you have the

same gos you you want to achieve the same thing you have the same mind all right you have the same

interest on what you want to achieve so it is easy to share to have a share interest to share goals and objective

you also have mutal benefits you will be able to gain value from the relationship that you have all

right you gain from the relationship you have with one another which include the sharing of resources the sharing of your

Capital it reduce the cost and also increase security and also give you access to New Opportunities all right it

give you access to New Opportunities Because by the time two words are put together you achieve more you achieve

more opportunity you achieve more HS you achieve a better go and objective rather than only one

person conducting the Affairs of the business or organization we also we also have trust and

communication in this forming alliances we also build trust and there is a communication a constant Communication

in sustaining this Alliance sustaining this relationship between two or more countries or

organization there is a defined roles and responsibility right clearly Define the

roles and the responsibility between the two organization in order to avoid misunderstanding and also to ensure

accountability we have the complete resolution mechanism there is flexibility and

adaptability there is cultural sensitivity and even sustainability which brings about a longterm goals it

BRS about the longterm survival of that organization and to achieve a long time success in that organization by building

relationship over time this will will help in sustaining that organization in keeping that organiz Organization for

long period of time we have types of alliances the we have three types of these

alliances we have the Strategic alliances we have the political alliances and we have the community

alliances under the Strategic alliances it deals with the formal agreement it ENT it ENT and with formal

agreement between the businesses or organization to collaborate on specific project or go

so in this case there is a formal agreement between the two the two organization between the two companies

as well in order to collaborate and achieve specific goals and objective we also have political alliances and this

one have to do with partnership between countries or political groups of people to pursue common

interest in their society in their Arena so we have the political alliances as well which has to do with partnership

between countries or the political groups and also the community alliances and this has to do with the local area

the local environment or organizations that are working together to address Share societ

Society to address share social economic and environmental challenges we have heard about what we call corporate

social responsibility so the community alliances is two or more organization

working together to assist the society to to bring about achievement of goals in that environment that Society where

the business is located so we have the forming alliances now to joint ventures

The Joint ver is it means that a business Arrangement where two or more parties or two or more organization come

together to undertake a specific project or activities by pulling their resources expertise or Capital while

also sharing risk and reward there is reward you share it and there is risk you also share the risk to join is two

or more two or more company come together with the same mindset and form a

new business it could be that I have a business another person have a business that running on their own but we have

the same interest we have the same goals we have the same objective so we also come together to form another new

business that is joint venture and in this case you have collaborate achievement and you also

agreed upon some certain things in order to achieve formal goals and to achieve the oranization

goals and objective under this joint venture there something we call share objective just

like I've explained you have the same objective you have the same mindset you share the objective you share your

vision you share the goals that you have in order to bring about the growth or to achieve that organization

establishment by launching a new business a new market and it will make it easy to enter into a new market

because it's a new business it's a new entity as well so we also have separate legal entity that is the it consist or

this joint venture can exist as a contractual agreement whereby you separate the owner from the

business activities it's a leg is a separate legal entity on its own and it has to do with a company or a

partnership you also have limited scope and duration in this case joint ventures are fund for a Define purpose and

dissolved upon achieving their objective know when you say two company come together to achieve the same go there is

a purpose there is a goal that is attached there is a reason attached that brings about a new business that brings

about the establishment of new business or new company so this can be form for a Define purpose and also dissed when the

sh when the grows has been achieved we also have Shar risk and reward you share risk you share the

reward there is risk involed you share it between the two or more parties or between the two or more company and also

if there is reward we also have autonomy as well in this Cas the parties maintain their independent operations outside the

ventures and these are the key features of this joint venture we also have types of joint ventures

where we have we have Equity based joint ventures and we also have contractual joint ventures and what we mean by this

Equity based joint vure is that Partners contribute Capital to form a new entity the partners the parties that are

coming together the companies that are coming together to form one they contribute Capital you in order to

establish a new entity in order to establish a new business that is the

equity the equity based joint pen and also ownership is distributed based on the investment depending on the

investment you have in that organization or in that company so the ownership is also

distributed in that kind of business and we also have the Contra contract

joint ventures and in this case the partners work together under a legal agreement without forming a new entity

you know the first one which is Security based TR ver is that they come together they contribute Capital they contribute

resources ining a new entity forming a new business in the case of contractual joint V the partner only together based

on on agreement without forming a new entity just like you have you have what to want to achieve I believe that if you

put company a and Company B together you'll be able to achieve that purpose for us so that is the contractual

contractual agreement is based on contracts that you be able to achieve your goals and the

objective so in this joint vur the advantage of this joint V is that they pull resources together they put put

pull Capital together their resources their the the common interest that they have they share everything together they

pull everything together to achieve their go even the strength that they have they pull

everything together in achieving their goals we also have the market entry and this also bring about a new market entry

it Prov access to New Market entry or regions you also have risk sharing just like I've explained there is reward you

share it and if there is risk involved you also share the risk that is involved there is also room for

Innovation because this joint ventures also bring about Innovation it brings about new things it brings about new

development new materials new resources and fer collaboration and the development of a unique product or

Services all right because you are bringing different experience that people have between the

two parties you have different experience so you put the experience together to achieve the same foron goal

then the disadvantage is that there is a conflict of interest that is differences in

objective or management styles can cause this this is the sty this is the sty another

person you want to the resources I mean the sty together will be a complete of Interest except there an agreement so

this is the unless there an agreed an agreed interest or an agreed

objective or an style management style that you want to use so this also be a challenges to this joint venture that is

in terms of the conflict of interest we also have limited control because participants may need to compromise in

decision making so there's limited control in this case as well we also have profit sharing any must be

distributed according to the agreement the agreement you have when joining the organization or when coming together to

have joint vure there's an agreement on how to share your profit and how to share your

loss we also have the solution challenges the disolution challenges is just that exiting a joint venture can be

complex and may also lead to disp you know organization that two three people build up together and if anything happen

to disolve such business will be very complex and very difficult in dissing and one of the challenges as

well when it comes to joint ventures the dissolution challenges also disadvantages to this joint

ventures what are the steps to form a joint ventures when you look at the joint ventures if you want to form a

joint ventures what are the steps you need to take what are the steps you need to follow we have identify

partners you need to identify the type of Partners you want to have to select the type of organization you want

to you want to work with you want to comply with so you need to look at identify Partners you also need to

Define your objective right this is different from an individual business this is a joint

business so you need to First identify your objective the real objective the reason why you having that

durint pension so you need to identify your stated objective there must be a a draft of

agreement a draft of what an agreement you establish a c covering contribution you establish a covering contribution

the profit sharing and the diso resolution as well we also have legal structuring we decide whether to form a

new entity or to operate under a contract that is the two types of TR vure that we have we have Equity based

joint venture and contractual joint ventures so be able to identify from that point that is it to

build up a new entity a new business or we want to work on the contract and still achieve the same foral goals you

also have operational planning operational plan is just to set up the governance the management and execution

strategy that you want to use in operating that joint ventures so joint venture is a flexible and strategic

strategic approach to achieving specific business objective by leveraging the Collective Strength of the partners so

we just want together of two or more part to achieve the same common parties that have the same interest that

have the same that share the same interest the same Mission coming together to achieve that goals is what

we refers to as joint venture thank you for listening [Music]