franchising as an instrument for the adb for sme development
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Franchising as an instrument for the ADB for SME development. M. Bourenane Enterprises Support Service Division Manager [email protected]. SMEs and economic development Franchising as an SME development tool Franchising in Africa Franchising and the ADB Some Concluding Remarks. - PowerPoint PPT PresentationTRANSCRIPT
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Franchising as an instrument for the ADB for SME development
M. BourenaneEnterprises Support Service
Division [email protected]
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I. SMEs and economic development
II. Franchising as an SME development tool
III. Franchising in AfricaIV. Franchising and the ADB
V. Some Concluding Remarks
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I. SMEs and economic development
• over 90% of private businesses are SMEs
• main generators of employment
• contribute to a more equitable distribution of income
• contribute to local and regional development
• promote a culture of entrepreneurship and other business-related skills due to their low entry barriers
In Africa, SMEs generally lack technological and managerial capacities, leading to high failure rates
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• Job creation: direct and indirect jobs
• Wealth creation: contribution to poverty reduction
• Skills transfer and business linkages
• Improvement in standards and quality
• Generate entrepreneurship
Franchising has a significantly higher rate of success than independently run SMEs
II. Franchising as an SME development tool
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Evidence of the Existence of Franchising
Adequate Environment to Support Franchising
Varying degrees of franchise activity were found to exist in 22 African countries
III.Franchising in Africa
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Factors that affect the development of franchising in African countries:
General enabling business environment
Population and market size
Proximity to larger franchising nations
Level of urbanisation
Literacy rates
Corruption
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Constraints to the development of franchising:
Poor awareness by the different stakeholders
Lack of financing available
No specific franchising regulation
Disinformation as to existing business opportunities
Little private sector involvement and support
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ADBLEGAL AND
REGULATORY INITIATIVES
INTERNATIONAL MARKETING AND
AWARENESS INITIATIVES
CAPACITY BUILDING
INITIATIVES
FINANCING PROGRAMMES
Franchising and ADB: Main axes of intervention
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Sponsor and participate in Franchising Seminars
and Conferences
Awareness Creation: Research and Publications
INTERNATIONAL MARKETING AND
AWARENESS INITIATIVES
MOROCCO
EGYPT
SOUTH AFRICA
NIGERIA
JAI Seminar (TUNIS, CAIRO)
Franchising Toolkit
Franchising Report
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CAPACITY BUILDING
INITIATIVES Technical Assistance
Programme:FRANCHISE
ASSOCIATIONS
MOROCCO
EGYPT
Non-regional Franchise
Associations
Other Local and International
Experts
Franchise Association of
Southern Africa
Network of African FRANCHISE
ASSOCIATIONS
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FINANCING PROGRAMMES
FIRST PROGRAMME to finance franchisees in
South Africa
ROLL OUT OF THE PROGRAMME
SADC ? Morocco Egypt ???
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Last year’s seminar an overview:Franchising as business format
Status of franchising
Challenges
Role of private sector and its support institutions
Access to finance
Policy and regulatory issues
International versus indigenous franchising
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This year more in-depth and new topics:Franchising associations
Self-regulation
Laws and regulations
Business development services for franchisees
Regional franchising development through indigenous and international franchising
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IV. Concluding Remarks1. Franchising can have positive development impact
in Africa
2. Potential should be assessed with a medium to long term perspective
3. Important to bring all stakeholders together to address existing constraints with a Public-Private Partnership approach
4. ADB can play facilitative role along with other stakeholders