Post on 18-Jan-2016
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From Harm to Home | Rescue.org
IRC Microfranchising
Paolo Cernuschi, Zimbabwe Programs Coordinator
SMEAZ Workshop, 29 January 2013
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From Harm to Home | Rescue.org
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).
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From Harm to Home | Rescue.org
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
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Definition of a Microfranchise Systematize Replicate
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What is the difference between Microfranchise & Microfinance ?
VS.
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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
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Example of Microfranchise
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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
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IRCs’ Preparations for Microfranchise Development
• New Market Entrant Assessment • Specific needs• Interests • Potential local partners
• Franchise Assessment• Scalability• Profitability • Management Team
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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
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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
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Thank You!!!!