YouthSports New Zealand: A Non-profit Organisation for Promoting Organised Sporting Activities Among Youths
Table of Contents
Research Objectives and Research Questions 5
Summary
YouthSports NZ is a non-profit organisation that seeks to develop and conduct organised sporting activities among children and youths within the country. The primary goal of the organisation will be to increase the chances of involving children in physical activity for the various health and development benefits. However, the organisation will also create jobs across the country owing to its proposed expansiveness. This research proposal provides a roadmap for conducting a study to assess the plausibility of the business proposal in achieving the set objectives. The proposal suggests a secondary research methodology with the analysis of various sources of information. The theoretical framework is based on the governance and management of such an organisation.
Statement of the Problem
This proposal focuses on organised sports among children and youths in New Zealand. According to Smith (2018), organised sports is a branch of physical activities that is goal-oriented, structured, competitive, and based on content. The non-profit organisation will provide a framework that supports physical activity among children and youths aged between 5 and 18. The proposal provides a general overview of how to implement the philanthropic business idea through a sustainable model.
Background
New Zealand has a population of over 900,000 children and young adults aged between 5 and 18. However, only 7% of that population meets the country’s guidelines on physical activities including sports, physical education, active reactions, and exercise (Smith, 2018). The guidelines recommend that children engage in at least 60 minutes of moderate to vigorous physical activity daily. Sport New Zealand (n.d) has developed a strategic plan for 2020-2024 with a focus on tamariki (aged 5-11) and rangathi (aged 12-18) with varying activities. In the plan, physical education will be the focus for tamariki while rangathi are to be engaged in recreation and sporting activities. The plan details the extent of the problem of fewer physical activities among children, especially girls. Turnnidge, Côté, and Hancock (2014) states that sporting activities are essential for physical development but also provides opportunities for learning skills such as teamwork, coaching, as well as moving youths away from negative recreation activities such as drug abuse, sexual activities, and violence. Organised sports, in particular, remains stable but below the expected levels. For instance, 51% of children engaged in some form of sporting activities for their schools with those aged between 13 and 15 only recording 54% (Smith, 2018). Such statistics indicate the need to enhance physical activities, especially sporting events, among children in the country.
Research has indicated more benefits of physical activity among children and youths. Febbraio (2017) states that physical exercise has health benefits including improved cardiorespiratory health, development of stronger bones and muscles, reduce mental health symptoms such as anxiety and depression. Exercise also helps in controlling weight thus reduction in chances of obesity which is a serious health problem in developed countries. According to the Ministry of Health (2020), New Zealand has the third-highest obesity rate in the OECD with a statement that obese children are highly likely to retain the condition in adulthood. Therefore, it is important to prevent public health from childhood. Physical activities provide the opportunity to providing such solutions.
YouthSports NZ is a proposed not-for-profit organisation with the aim of implementing widespread and organised sporting activities across the country. The primary objective of the organisation is to provide a complementary and supportive framework that helps to achieve the goals of getting children in the country more physically active. YouthSports NZ seeks to engage with schools and communities in planning and undertaking organised sporting activities across New Zealand.
The organisation will be built on the position that children can engage in organised sports regardless of their age, gender, race, family income, or family composition. The objective is to create equal opportunities for all children to engage in sporting activities for the aforementioned benefits. The programs will be inclusive and organised through schools and within communities to increase the reach of the target population. YouthSports NZ will be involved in the planning of sporting activities that will act as complementary programs to existing organised sporting events of the education sector. YouthSports NZ will provide more opportunities by covering a wider range of communities and schools to ensure that all children have the opportunity to engage in physical exercise.
Research Objectives and Research Questions
The objective of this research is to investigate the feasibility of implementing the proposed business idea for a non-profitable organisation. The non-profit organisation is supposed to create employment opportunities but remain sustainable as a business model. Therefore, conducting the research will allow for the assessment of the plausibility of the model. Funding is a primary element of not-for-profit companies as they usually do not have shareholders and thus rely on grants and donations. Investigating the potential sources of funding to sustain the business is thus a key objective and forms the first research question.
Research Question 1: How will the organisation attract investors and funders?
Another objective of the research process is to assess the potential management and governance structure of the organisation. Non-profit organisations do not have the governance and management structure of a traditional company. Therefore, it is imperative to address the issue of governance to develop an effective organisation that is well-managed.
Research Question: What are the potential management and governance structure for a not-for-profit organisation?
The final objective of this research is to conduct a market analysis into the plausibility of developing such a company. Essentially, that will involve the analysis of market information to determine the size and potential contribution of the organisation both job creation and its core model of promoting physical activity among children and youths.
Research Question: What is the expected market contribution of YouthSports NZ as a non-profit organisation in the country?
Theoretical Framework
Non-profit organisations are those that are involved in philanthropic activities as opposed to generation of profits from operations. In such a case, the organisation uses its surplus income to pursue a social course and not distribution to shareholders. Such companies are usually exempted from tax because of their social value to society as opposed to the economic benefits of a few individuals (Netzer, 2020). The objective of such organisations is to make positive contributions as their primary business model.
Management of Non-profit Organisations
Non-profit organisations generally generate finances in various ways. Grants and donations are the two most common sources of income (Fischer, Wilsker, & Young, 2011). Organisations, government agencies, and even the general public can donate funds to charitable organisations to further their operations. Corporations can also sponsor the activities of an NGO to contribute to the finances of the organisations. YouthSports NZ can attract several sponsors that will then obtain brand exposure from such events. Therefore, the organisation has the potential to attract several corporations thus increase the channels of obtaining funds for normal operations. The government, through the Ministries of sports, health, and education, can also donate funds to the organisation because of its social contributions. YouthSports NZ can also raise funds from the sale of merchandise as a sports-oriented organisation. Due to limited income, financial management becomes an essential part of non-profit organisations. Remaining fiscally viable and sustaining the not-for-profit model requires an effective financial management framework to achieve its mission motives.
The remuneration structure of the organisation will also provide a key part of the success of the organisation. As a non-profit company, YouthSports NZ will have an unstable financial status that will require an effective compensation policy. The organisation seeks to the employee between 90 and 110 new jobs. Therefore, human resource management must develop a policy that aligns with the financial situation of the organisation.
Another key area of management is growth and sustainability processes. Bianchi (2012) argues that non-profit organisations now face the pressure of companies to not only remain successful but also into the market. For YouthSports NZ, sustaining the business model is one of the primary objectives to ensure that it continues to create job opportunities. However, it is the objective of the organisation to grow and create more jobs as well as engage more children in physical activities. Like in corporations, non-profit companies must set clear missions and visions to guide the growth and normal operations. YouthSports NZ will have to develop stronger relationships with donors and other investors to raise the finances necessary to remain sustainable.
Governance of Non-profit Organisations
Governance and management of the organisation are of great interest in this research, owing to the notable differences from for-profit companies. According to the agency theory, managers of any organisation must act in the best interest of the organisation (Van Puyvelde et al., 2012). That provides a theoretical framework for governing non-profit organisations as the companies suffer from limited funds. Therefore, every manager must ensure that the governance and management processes and decisions put the interest of the organisations before their personal interests. Van Puyvelde et al. (2012) argue that the agency theory can still apply in the governance of charitable organisations despite several ambiguities that exist. For example, trustees of charitable organisations are synonymous with a board of governors in a for-profit organisation. Their role is to oversee the operations of the organisation to ensure that funds and resources are not misused. The theory primarily seeks to promote compliance managers and prevent behaviours of self-interest that can prevent the success of the organisation.
SWOT Analysis
A SWOT analysis will help to conduct a preliminary strategic analysis of the organisation to determine its chances of being successful. The model provides a framework for appraising the internal factors of a company to understand its strengths and weaknesses (Helms & Nixon, 2010). Strengths are the factors that enable a company to achieve its normal operations and create a competitive advantage. Weaknesses refer to the internal shortcomings of the company in the business environment. They are factors that hinder the normal operations as well as the growth of the company. Analysing the external business environment is also vital as it helps to assess the factors that allow for the growth of a firm or threaten its existence and competitiveness Opportunities element of the model investigate the factors that help to profile potential sources of competitive advantage to exploit. These factors allow a company to make strategic decisions that will take advantage of the identified gaps in the market (Helms & Nixon, 2010). Finally, threats element investigates the factors that can expose a firm to competition and other harm. Therefore, successful profiling of threats allows an company to make effective risk aversion strategies.
Conducting a SWOT analysis for YouthSports NZ will help in assessing the potential internal and external factors to help in the growth and longevity of organisation. The model will help in making effective strategies that aid the success of the organisation. From understanding its strengths, YouthSports NZ will be able to use them to take advantage of market opportunities and mitigate threats. Also, the company will understand its weaknesses to prevent threats and not them prevent the exploitation of market opportunities. In essence, the success of the organisation will depend on the effectiveness of its strategies. A SWOT analysis model provides the theoretical framework for analysing the market to inform strategic decisions for such an organisation.
Methodology
The study will use secondary methodology and methods to achieve the set objectives and answer the research questions. Secondary research is the use of existing information as the sources for conducting a study (Gratton & Jones, 2014). The primary advantage of applying secondary research is that it allows for the collection and analysis of a wide range of sources that provide a wider scope of analysing a business problem or opportunity. The use of a wide range of sources increases the validity of the findings reached, especially from reputable sources. Secondly, the research questions cover a diverse range of business concepts that require the use of existing sources. Secondary research provides information on all topics that will help to answer the research questions. The primary advantage of secondary research is its cost and time efficiency (Hewson & Stewart, 2014). An organisation does not have to conduct lengthy and costly primary research as the information is readily available from primary research. The internet has provided a repository to collect all types of information to make it easier to obtain data for secondary research. In turn, that has increased the efficiency and effectiveness of the method in terms of costs and time of conducting a study.
Sampling Method
Purposive sampling will more applicable for this study because of the specificity of the information necessary. The method relies on the researcher’s judgment on the appropriateness of a source for the study (Etikan, Musa, & Alkassim, 2016). It is a non-probability sampling method that indicates that the study will not focus on the quantitative accuracy of the findings and the conclusion reached. In essence, purposive sampling allows for the selection of sources based on their relevance in answering the research questions. The following sources will provide the necessary information to conduct the research;
Governmental and non-governmental publications – government agencies and institutions usually research various topics including economic and business processes to inform government policies. Therefore, the data from such sources will provide a wide range of information to answer the three research questions. Moreover, the information is readily available on government websites.
Trade publications – several agencies conduct extensive market research on various industries. Therefore, they provide business information that can be valuable in conducting market analysis as one of the objectives of this research. Additionally, publications on non-profit organisations can also provide the necessary information to understand their management and governance structure as well as their chrematistics.
Academic sources – these are highly reliable sources primarily with theoretical positions on various specific concepts. Information from the sources will be more useful in the understanding non-profit organisation. The sources also provide theoretical frameworks for conducting secondary research and justifications for potential findings.
News articles – these sources are least reliable and will be used with caution. Some of the news sources might contain less valid information due to the personal reporting of journalists. Nevertheless, some news organisations are highly reputable and provide valid information for use in secondary research.
Contributions of Research
The research will help the organisation to understand every aspect of its market and the proposed business model. As a new organisation, coupled with the inexperience of the founders, the research will provide them with an understanding of every aspect of starting and running such an organisation. The information will provide substantial data to support the business proposal. Such an investment will require a thorough market analysis to ensure that the organisation achieves the objectives it is set to accomplish.
Project Timeline
| Activity | Jan | Feb | Mar | Apr | May | Jun | Jul |
| Drafting a plan for the study | |||||||
| Conducting an in-depth review of the literature | |||||||
| Sampling and collecting appropriate sources | |||||||
| Counter-analysis of the sources and sorting | |||||||
| Conducting the research | |||||||
| Analysis and drafting of finding | |||||||
| Drafting the write-up |
Budget
References
Bianchi, C. (2012). Enhancing performance management and sustainable organizational growth through system-dynamics modelling. In Systemic management for intelligent organizations (pp. 143-161). Springer, Berlin, Heidelberg.
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.
Febbraio, M. A. (2017). Health benefits of exercise—more than meets the eye!. Nature Reviews Endocrinology, 13(2), 72-74.
Fischer, R. L., Wilsker, A., & Young, D. R. (2011). Exploring the revenue mix of nonprofit organizations: Does it relate to publicness?. Nonprofit and Voluntary Sector Quarterly, 40(4), 662-681.
Gratton, C., & Jones, I. (2014). Research methods for sports studies. Routledge.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now?. Journal of strategy and management.
Ministry of Health. (2020, September 2). Obesity. Ministry of Health NZ. https://www.health.govt.nz/our-work/diseases-and-conditions/obesity#:~:text=Obesity%20in%20New%20Zealand,and%20one%20in%20ten%20children
Netzer, D. (2020). Non-profit organizations. In Handbook of Cultural Economics, Third Edition. Edward Elgar Publishing.
Smith M. (2018). New Zealand’s 2018 Report Card on Physical Activity for Children and Youth. The University of Auckland doi: 10.17608/k6.auckland.7295882
Sport New Zealand. (n.d.). Children | Sport for kids | Sport New Zealand – Ihi Aotearoa. Sport New Zealand | Ihi Aoteroa. https://sportnz.org.nz/get-active/children-and-young-people/
Turnnidge, J., Côté, J., & Hancock, D. J. (2014). Positive youth development from sport to life: Explicit or implicit transfer?. Quest, 66(2), 203-217.
Van Puyvelde, S., Caers, R., Du Bois, C., & Jegers, M. (2012). The governance of nonprofit organizations: Integrating agency theory with stakeholder and stewardship theories. Nonprofit and voluntary sector quarterly, 41(3), 431-451.
Hewson, C., & Stewart, D. W. (2014). Internet research methods. Wiley StatsRef: Statistics reference online, 1-6.