Recovery and Growth

Friday, 29 January 2010 06:45

AFTER RECESSION COMES RECOVERY AND GROWTH – THE INTERNATIONAL FRANCHISE EXPO (IFE 2010) TAKES THE LEAD IN STIMULATING ENTREPRENEURSHIP

January/February 2010

All eyes will be on South Africa in 2010! This watershed year not only marks the hosting of the FIFA World Cup Soccer, the premier world event, but it will also mark the significant upswing in business and consumer confidence. Whilst all sectors of business have felt the effects of the economic recession, franchising has managed to weather the storm better than independent businesses. Franchising, known as one of the most securest business formats, will be leading the way in economic recovery by stimulating the small business sector with its entrepreneurial opportunities, skills development and job creation. IFE 2010, under the auspices of the Franchise Association of Southern Africa, which takes place from the 6 – 8th May at the Sandton Convention Centre in Johannesburg will be the ideal springboard for that recovery.

Franchising in South Africa, since the very first fast food franchise opened its doors in the 1960’s, has always been in the forefront of change and has always stayed one step ahead in terms of business innovation. Says Vera Valasis, Executive Director of FASA, “When the country had to endure years of sanctions and isolation, the franchise sector did not fade into oblivion but instead took great entrepreneurial strides and developed home grown franchise concepts, many of which are household names and today 88% of its franchise concepts are home-grown. Likewise, through all the economic recessions, franchising has stood its ground and continues to be the first entrepreneurial stone thrown that causes the ripple effect in business innovation.”

With just over 12% of business activity going through the franchise route at present compared to over 50% in the US, the potential for increased franchise growth remains high and shows like IFE are the ideal platform for prospective franchisees to find out more about this business format. When there is insecurity in the job market, or when retrenchments or retirements happen, people are spurred into being entrepreneurial, fully aware that they have to consider alternative careers. The opportunity of going into business suddenly becomes feasible and it is here that franchising comes into its own.

With the business format of franchising so successful throughout the world, many existing business entrepreneurs should be asking themselves - is my business franchiseable? The business format of franchising offers exciting opportunities as a distribution mechanism. It can be a means of vertical integration that combines a high degree of control with a low degree of risk. The franchisor controls standards and procedures, while the franchisee carries the operational and financial risk. It is also closer to the consumer level through its franchisees and this aids the anticipation of trends in the consumer market. The opportunity also exists to franchise current operations, or to expand the concept further through franchising instead of establishing branches.

Says Thulani Cele, Chairman of FASA, “South Africa has many entrepreneurs who have the drive and finance to start their own businesses but who do not give enough consideration to franchising as a route to diversify and achieve their ambitions. We appeal to business entrepreneurs who believe they have a good concept or who have an existing business they wish to expand, to consider franchising and to become part of this growing business sector.”

IFE 2010 - on at the Sandton Convention Centre from the 6 -8 May 2010, will profile a significant selection of franchise and business opportunities as well as have all the free advice and information on offer from professional advisers such as lawyers, bankers, consultants etc. The exhibition will bring together close to 100 exhibitors from a wide range of well-known business concepts and brands, covering everything from fast food to car repairs, from retail to education. For prospective franchisees, the IFE 2010 Expo is an excellent opportunity to see franchisors face to face, take a measure of the substance and style of the operations and find the one that best suits them. In addition, a Speakers’ Corner sponsored by Standard Bank will host key speakers on a wide range of subjects pertinent to business success, franchising and funding. A two-day Franchise Convention, which runs alongside IFE 2010 will look at the state of the economy, the state of the nation and unpack the elements needed to propel franchisings’ growth through the next decade.

IFE’s 16-year history of delivering thousands of qualified buyers to leading edge franchisors is unmatched in Africa. As the largest, most dedicated franchise show on the continent, it is the definitive, one-stop resource for business owners and entrepreneurs who want to invest and operate a premier franchise.

The management and board of FASA will be offering companies wishing to consider the franchise option a special preview of IFE 2010 on Thursday 6th May - with the opportunity to meet some of the key players in the industry and be advised on whether their business concept could be franchised. To receive an invitation to the preview contact Giuli Osso on Tel No: (011) 802-1611, Fax No: (011) 802 3712 or email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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