Micro franchising is a
sub-conceptualized type of the traditional franchising mechanism with
emphasis to small scale operations. This was designed to cater the needs
of young entrepreneurs and business neophytes. Not just that, this is
also a tool built for most overseas Filipino workers who want to venture
into commerce and trade after piling up their savings.
These business neophytes paved their way
with nothing to worry about personal operation system starting from
thinking of the kind of product to introduce in the market, the name,
suppliers, the target market, good location, inventory, tedious papers
and legal processes, and the desirability and longevity of their
business plan. It’s like handing these new businessmen the tool kit to
start with an already started project, and give them the opportunity to
expand and become their own boss.
To start with the biggest question of
all, micro franchising gives way for low-capital investors in the
market. For as low as 10,000 pesos, micro franchisors can engage in
business in the bag franchising, conversion micro franchising,
infrastructure based ones, and even in agent network micro franchises.
- Stay at home moms and even professionals and students are very much familiarized with business in the bag franchising. One common example is the catalogue brought by your neighbors for you to choose different cosmetics, health care products, apparels and accessories. This gives emphasis on dealership and retailing sector.
- Some establishments or existing small-scale business may also open their business transaction with an already expanded business. This is one way to bring life and chance to their unduly recognized product.
- Food franchises like food stalls and kiosks as well as the water purification and refilling stations are just the common infrastructure based micro franchises where the franchisors support and aid their franchisee in acquiring equipment and tools.
- Agent network micro franchising is common in more technically inclined entrepreneurs who desired to act as social agents for big companies. Mobile money banking is one example.
The macro level of addressing the
socio-economic problem is not that ideal. Well, based on the correlation
between a country’s GDP and the number of franchise operations, there
is a direct proportion on such; especially that US leads the rank with
$47,500 per capita with 15,000 franchise systems in operation; while the
Philippines ranked 4th with 150 franchise system resulting to $3,300
per capita in 2008. Indeed, micro business franchising brought hope to
low income individuals and to the economy as a whole.
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