Why Franchising the Better Solution to Financial Crisis — Franchising is a better solution to help the country get out of the global crisis quicker than the rest. Why?
Franchising, as a business model, fits the qualifications of the affected workers noting that in these times of downsizing and layoffs, many people with management experience are looking for new careers. These displaced workers are the perfect candidates for franchisees that can make a franchise grow.
Using the time, resources and network of the franchisee, the franchisor can expand his business. The franchisee, in turn, is given a livelihood.
Franchising is the better business model because it does not require someone to be an entrepreneur in the first place. Being a franchisee is not strictly being an entrepreneur. It is more of being a manager, which is what he was before getting retrenched. But this time, he is his own boss. It’s basicaly being an entrepreneur without the major headaches.
Despite the limited support from government and the financing sectors like banks, franchising has already helped create thousands of businesses and millions of jobs in the Philippines. The Philippines leads in the number of franchise concepts and outlets. Here in the country, there are about 1,000 franchise concepts creating about 100,000 outlets and generating about 1,000,000 jobs. And there is still much room to grow.
If it is given the environment like the government require banks to dedicate a portion of the 10 percent mandatory allocation from their total loan portfolio for small and medium enterprises to franchise financing, franchising business in the country can reach its full potentials.
Given the right government intervention, the Philippines can become the franchise hub in Asia because of its strategically located as the gateway to Asia and the Filipinos natural flair for the service industry.
Certainly, franchising is worth investing. This win-win situation is a kind of entrepreneurship that government should encourage in this time of crisis.