FREE TO READ | Franchising a model that has proven its worth

Estimates by the International Finance Corporation (IFC) indicate that small and medium enterprises (SMEs) in SA contribute just over a third of the nation’s GDP and provide employment for 50%-60% of all workers. Considering our country’s nigh-on stagnant economic growth and burgeoning unemployment problem, these figures are clear indicators of the essential role of SMEs in sustaining and improving the lives of millions.

Despite this, the IFC reports that, in light of the number of SMEs and the GDP per capita, the country’s early-stage entrepreneurship rate is a third of what it should be. To put it simply: SA needs more entrepreneurs and small business owners. And these entrepreneurs need support.

The franchising model serves two key purposes: providing a means for franchisors to expand their business empires and a structured operating environment and recognisable brand within which franchisees can ideally thrive.

It’s a model that has thrived in SA, employing almost half a million people and contributing 15% of GDP, according to the Franchising Association of SA (FASA). FASA kicks off this issue of Franchising, digging a little further into that economic contribution, exploring how new franchise concepts are introduced to market and looking at how franchisors see the future.

We also look at the sector’s crucial employment contribution, where SMEs fit into a broader snapshot of the economy, dispute resolution in franchising, successful liquor franchises and courier services filling the void left by the SA Post Office’s decline. We hope this magazine contributes in some way towards the growth of SA’s crucial SME sector.  

Anthony Sharpe, Editor

Browse through the full magazine below (zoom in or go full screen for ease of reading):