select
|

Beefing up support for franchising

So says Jan Davel, MD of the RealNet national estate agency franchise group and chairman-elect of the Franchise Association (FASA), who believes franchising is one of the most important keys to solving some of the country’s biggest problems including lack of education, unemployment and poverty.

Quoted in the latest issue of Be Your Own Boss, he says that with regard to job creation, for example, almost 500 000 new businesses will have to be created if government is to meet its target of 5m new jobs by 2020.

“And franchising has already proved that it can fulfil the criteria for small business expansion and job creation. While formal sector employment fell alarmingly in the two years from 2008 to 2010, the franchise sector, which represents 17 different industries, created 2300 new business outlets and more than 28 000 new jobs.

“Indeed, franchising can go a long way in stimulating entrepreneurship and helping people to establish the successful small businesses that are the backbone of the economy and job creation. It provides inexpensive, measurable mechanisms to provide training, facilitate skills transfer and unlock opportunities in local communities.”

Consequently, says Davel, it is important for both the banks and more would-be business owners to understand that once a franchise system has been tried and tested, one can take well-informed decisions based on realistic financial projections – and subsequently mitigate risk far better than in the case of independently-owned businesses. “A franchise business is simply a much safer option for both the borrower and the lender than an untested new business, no matter how good the business plan.”

Having said that, however, he does not believe that the biggest challenge facing franchising at the moment is the current economic climate and banks’ conservative lending policies. “The biggest challenge now is to get the message across about the very important role franchising can and does play in the economy, and to expand the concept to other industries.

“Countries such as Australia, Brazil, the UK and US have far more franchised industries than we do, and just looking at some of our country’s current challenges, I think energy and water saving solutions, waste-recycling, health care options and education, for example, all offer excellent opportunities for franchise development now, and that we will possibly also see the development of public-private franchise systems for the delivery of government services in the not too distant future.”


  Comment on this Article

  

Post to my facebook wall
  
2000
Characters remaining


  • Adriaan Grove - posted 28 Nov 2011 08:49 AM                                    

    couldn't agree more

Latest Property News
  • 17 Nov 2017
    FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
  • 17 Nov 2017
    It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
  • 17 Nov 2017
    The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
  • 16 Nov 2017
    Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
  • 16 Nov 2017
    The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
  • 16 Nov 2017
    Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
  • 15 Nov 2017
    Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
  • 15 Nov 2017
    There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    
X
Subscribe to the MyProperty Newsletter

Name  
Last Name  
Email Address  
Email Frequency
select
X
Share this Page

   
For Sale Property
Rental Property
More Options
About
Connect with us
FEEDBACK