Tuesday, April 24, 2007


These come from BYU's Center for Economic Self Reliance composed by Stephen Gibson:

Q. What evidence do you have that MicroFranchising is an effective tool?

A. Vol. 4 of the book series, “Where There Are No Jobs: The MicroFranchise Handbook” lists dozens of companies and NGOs that are using one or more of the many variations of the microfranchise model to move products through various sales channels. This book is available at the online shop of the BYU Center for Economic Self-Reliance.

Q. How does MicroFranchising work?

A. Microfranchising works like any commercial or social franchise. What makes it unique is that the primary objective of microfranchising is to help microenterprise owners grow either their businesses or their assets. In the franchising world there are two players that have a symbiotic relationship: the franchisor who is trying to increase market share and spread their brand and increase income, and the franchisee who is trying to earn a profit by running a proven business in his location. These same two players exist in the MicroFranchise world. However, often the franchisor could also be an NGO which is primarily interested in lifting up the owners, who are the potential franchisees, into the profit-making world. This is accomplished by replicating a good business opportunity to other small microenterprise operators.

Q. What are some of the advantages to a microentrepreneur of either being the microfranchisor or microfranchisee?

A. Here is a list of ten advantages to all parties involved in MicroFranchising:

--Replicates the performer’s winning business
--Removes the creative burden from the potential franchisee
--Provides a superior method of transferring technology
--Reinforces vital business skills and practices necessary for greater financial growth.
--Forces a mentor relationship
--Reduces the odds of failure during the start up process
--Speeds the exit out of poverty and to economic self-reliance
--Enables more small business owners to take advantage of market opportunities.
--Allows for economies of scale in purchasing and advertising.
--Eases the challenges of a fresh start-up because systems are in place.

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