Is the franchise industry ready for 4.0?

industrial-4.0-franchising

Change is inevitable… Change is constant… and resistance is futile

Those famous words from Benjamin Disraeli, British Statesman from the 1800’s ring true and go back to the early days of man’s quest to conquer the world.  According to interesting info from franchise site www.franchisocreator.com whose history of franchising tracks the origins of this successful business format, the first franchises can be traced back to the Middle Ages, when exploration and the discovery of distant lands meant the discovery of new goods and a whole new way of life.

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Don’t let lack of funding stop you achieving your dreams

funding solutions

You can be like Zamile, owner of a well-known restaurant in Kuruman, in the Northern Cape. He was paying close to R5,000 a week to rent a sound and lighting system. Fundrr assisted him in purchasing his own brand-new system, he paid this off after just 6 months and now he owns his equipment, and as a result, no longer has cash flow issues and he is saving +-R220,000 per annum.

Small businesses are the heart and soul of the South African economy. It is estimated that of the 2.8 million SMEs,  small businesses employ over 60% of the local workforce, contribute 35% towards the GDP and collectively have an annual turnover of R727 billion. Unfortunately, according to the NCRs, most small businesses do not last more than 2 years due to inability to access finance. Capital adequacy regulations force banks to lend against fixed assets rather than to lend to businesses. Initially this seems prudent, but eventually this leads to lower economic growth and higher credit risk.

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The Swinging 60’s – The decade when South African’s developed a taste for franchising

franchising-intime

South Africa’s franchise industry started roughly a decade after it exploded onto the American scene and this is where the South African franchise story starts. Those early entrepreneurs who studied the American model and brought the concept to our shores recognised that the unique quality of this new business model lay in the fact that for the first time the franchise contained a complete business management package. This proved to be the catalyst for franchising’s growth as expansion could be achieved quickly, without control of the brand being lost.

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Small businesses need a break… to break into the big time!

The recent uproar over Ubuntu Baba baby carriers and Woolworths put the spotlight once again on the small guy versus the big guys and the challenges of small businesses being given the chance to break into the broader market.  As Eustace Mashimbye, CEO of Proudly SA puts it…’every small business dreams of being on the shelves or rails of our so-called big five stores’. FASA is proud to partner with Proudly SA in an initiative that sees up-and-coming suppliers getting exposure to some of franchising’s top brands in a series of supplier workshops that bring both parties to the table.

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FASA’s IFE Franchise Expo comes to Durban for the first time

In a first for KwaZulu-Natal, Ithala is hosting the Franchise Association of South Africa’s (FASA) flagship event – the 21st International Franchise and Entrepreneur EXPO.

pearl-bengu“Ithala approached FASA as part of its efforts to grow its Franchise Fund portfolio and provide SMME’s and co-operatives in KZN with opportunities to enter the franchising industry, not only as franchisees but also a means to convert their businesses into franchises,” said Ms. Pearl Bengu, Group Chief Executive Ithala Development Finance Corporation.

“The exhibition focuses on entrepreneurship. In line with Ithala’s economic growth and job creation mandate we aim to bring investment into KZN and match this with people keen to run their own businesses and have an opportunity for a better life,” she said.

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