Franchising, according to Jim (2007)
refers to an arrangement whereby a party (franchisor), who has developed a way
of running a business system successfully, licenses to another the rights to
operate that system using either his/her trademark or name or/and other rights.
The rationale behind franchising lies in acquiring support in the area of
training, which includes building personnel, management and overall opening up
of new horizons in the market place.
In Kenyan perspective, the business environment (though not all that conducive due to heavy cost of investment and production, partly because of heavy taxation and energy issues) has enabled a number of macro and micro enterprises to rise. More and more micro-enterprises are seeking support from the macro ones more than ever before. This has partly facilitated to their rapid growth.
Micro and small enterprises have potentiality of boosting a country’s economy. Although they are faced by many challenges, they still have opportunities to grow. These include linkage with multinational companies, networks with other businesses, diversification of market and products, enabling environment and franchising opportunities. Such opportunities, if well utilized by the micro and small enterprises can turn round their future in many developing countries.
In Kenyan perspective, the business environment (though not all that conducive due to heavy cost of investment and production, partly because of heavy taxation and energy issues) has enabled a number of macro and micro enterprises to rise. More and more micro-enterprises are seeking support from the macro ones more than ever before. This has partly facilitated to their rapid growth.
Micro and small enterprises have potentiality of boosting a country’s economy. Although they are faced by many challenges, they still have opportunities to grow. These include linkage with multinational companies, networks with other businesses, diversification of market and products, enabling environment and franchising opportunities. Such opportunities, if well utilized by the micro and small enterprises can turn round their future in many developing countries.
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