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IRC Microfranchising

IRC Microfranchising. Paolo Cernuschi, Zimbabwe Programs Coordinator SMEAZ Workshop, 29 January 2013. New Market Entrant Employment Mismatch. High unemployment minimal job opportunities Past initiatives provide opportunities not matched to market needs

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IRC Microfranchising

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  1. IRC Microfranchising Paolo Cernuschi, Zimbabwe Programs Coordinator SMEAZ Workshop, 29 January 2013

  2. New Market Entrant Employment Mismatch • High unemployment minimal job opportunities • Past initiatives provide opportunities not matched to market needs • We would need to create over 100 million jobs within the next 20 years to have enough jobs for the growing number of young people (UNESA, 2010).

  3. What is a Microfranchise Modeled after traditional franchises in the US and Europe Small businesses replicated from bigger existing business: proven business concepts established brand defined operations defined cost structure Microfranchises have minimal startup costs and are easy to maintain

  4. Definition of a Microfranchise Systematize Replicate

  5. What is the difference between Microfranchise & Microfinance ? VS.

  6. Why Microfranchise? • The franchisor has done the work • The franchisee needs to simply follow existing guidelines • Pairs a successful entrepreneur with those who lack the skills and capital to develop and start their own business • Benefiting the individual with the new business • Benefiting the existing business by expanding their customer reach and market share

  7. Example of Microfranchise

  8. Potential Role of NGO in Microfranchise General Create a microfranchise from scratch Invest in existing micro-enterprise and support its replication as a franchise IRC Facilitators of franchise development

  9. IRCs’ Preparations for Microfranchise Development • New Market Entrant Assessment • Specific needs • Interests • Potential local partners • Franchise Assessment • Scalability • Profitability • Management Team

  10. Sierra Leone- Microfranchising Year 1 • Pilot project took place 2009- 2010 • 100 youth matched with 7 franchise businesses • Youth receive training, mentoring and startup • Results (After 7 months): 100% still engaged, 83% making profit Year 2 • More detailed market assessment conducted, 1 franchise business chosen • 154 youth receive package of support and startup Splash microfranchises

  11. Kenya – Girls Empowered by Microfranchise • Year 1 • Market & Girls assessment conducted • 4 Business identified • Local consulting firm and youth organizations identified • Curricula developed • 250 girls trained and microfranchise started • Year 2 • Continue to scale up • Monitor progress • By end of Year 2 reach 2400 Lead Girls & Buddies

  12. Thank You!!!!

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