Today many growing economies of the world are fast becoming entrepreneurial societies. More and more entrepreneurs in different countries of the world are leaving their secure and long-term employment in order to unleash their entrepreneurial spirit. Franchising businesses are growing at a rate faster than any other industry sector of the economy. And franchise businesses are creating jobs at a faster rate, too
Franchise business in USA is a vital growth engine of economic expansion in the country and 2015 is all set to be a strong year for franchise business in USA.
However, starting a business is easier said than done. There are inherent risks which are associated with independent startups, half of which, according to the research, fail within the first four years of their inception. Here comes the franchise business which is a tried and tested business model where you can be you own boss. Franchise business stands you in good stead if you are starting a business or growing an existing business. They are a good way to start a business. It eliminates the necessity of starting from scratch.
Franchise business in India
For those who want to start a business, franchise business in India offers a wide range of new opportunities. At the same time, for the existing successful business, franchise business in India can be the useful method for rapid expansion of your business.
When it comes to franchise, India is still in the stage of infancy. The franchise business in India currently accounts for just over 1.1 per cent of the country’s gross domestic product (GDP). The last few years have seen the migration of franchise business in India into different industry verticals such as computer education, healthcare.
When it come to franchise, India is currently home to over 2000 active franchisors and over 1, 00,000 franchisees. These franchisees have made an investment of is over Rs.1, 50,000 crore in establishing their individual franchised businesses in the country. The franchise business in India has all the potential of quadrupling between 2012 and 2017. By 2017, franchise business in India is expected to contribute almost 4% of India GDP. It is to be hoped that franchise business is being accepted in India as a way of doing business. The number of business owners who are exploring the franchising route to business expansion is also increasing at a fast pace.
Franchise business in China
As the world’s most populous country, with more than one billion people, China is one the largest economies and also the fastest growing economy in the world. The incredible economic growth achieved by China during the past few decades entices the entrepreneurs to set up businesses in the country.
If you are willing to be your own boss running your own business and looking for more financial stability, you can find franchise business in China the appropriate landscape where your dreams can come true. The fastest growing economy in the world, China attracts hundreds of franchises every year from across the world. When it comes to franchise, China is fast emerging as a nation where franchising is becoming one of the fastest and most popular routes for expanding business operations.
The Chinese government has gone all out to promote Franchise business in china by encouraging the locals to acquire business skills by learning from successful business systems.
When it comes to franchise, China ranks among those countries which offer great potential. This is so because it is not possible for all the global brands to have their direct-sales outlets in all the parts of this vast country. The global brands need domestic franchisees who are well acquainted with the local markets.
Franchise business in USA
The popularity of Franchise business in USA is a testimony to the endless potential they offer to the business owners. Franchise business in USA has proved to be extremely successful. According to one estimate, in the USA, more than 50% of all retail sales come through franchise business.
When it comes to franchise, The USA remains on the top. The country occupies first position in the world franchising league table. The USA is home to more than 800,000 franchisees.
According to the reports franchising business in USA is all set to grow significantly in the country. According to IHS Global Insight, employment provided by franchise business in the USA is projected to increase by 2.6 percent in 2014, which is faster than the 2.5 percent growth in 2013. This is more than estimated total employment growth in the USA by 0.8 percentage points. According to projections from the International Franchise Association (IFA), franchise business in USA is projected to add 247,000 jobs I 2015, a 2.9 percent increase over 2014’s growth. According to IFA, approximately 12,111 more franchise businesses will be opened in the USA in 2015, an increase of 1.1 percent over the last year’s figures.
Franchise business in Brazil
There is no doubt that a franchise business in Brazil is a proven system of business operation. One of the advantages of getting into a franchise business in Brazil is that you can start your business without the inherent risks which are usually associated with independent startups, half of which, according to the research, fail within the first four years of their inception.
Today, the franchise business in Brazil has reached an advanced level of maturity where foreign brands are showing interest in the market. The wonderful economic growth achieved by Brazil has been ignited by entrepreneurial spirit of the Brazilians. Franchising system of business operation has emerged as the simplest and safest way to launch your own business. This is due to the fact that launching a business from scratch is not a simple affair in Brazil.
According to the estimates of the Brazilian Association of Franchising, the franchise business in Brazil has been witnessing an average annual growth of 10% to 13% in the last one decade. In 2011, the franchise business in Brazil generated profits of $44bn and today the sector is responsible for more than 850,000 jobs.
When it comes to franchise, Brazil is a hit among the entrepreneurs. The greatest benefit of buying a franchise is that the risks of failure in the franchise business are less thanks to its business model. While the risk of failure in a franchise business in Brazil is 15%, with a non-franchising business it rises to 80%.
Advantages of Franchise opportunities
As there are pros and cons of everything in life, the advantages of Franchise opportunities outweigh the disadvantages. Though no business partnership should be inked without due evaluation and knowhow, but the typical franchise opportunities offer many benefits that suit the business owners.
A franchise opportunity is a fully operational business concept that is attracting the attention of businesses of every size. Franchise opportunities have proven to succeed worldwide. Due to globalization, franchise opportunities are increasing day by day.
Today franchise opportunities are proving a great way for business owners to widen their business markets and utilize the resources, expertise and technology that may not otherwise be available to them.
However, starting a franchise business is easier said than done. Apart from the inherent risks, there are unexpected ones while going for a franchise business. As a matter of fact, many new franchise businesses come into being every day only to disappear after sometime. Though the chance of failure is lower for franchises, no business, as they say, is free from risk. Franchises are not always a guarantee for success. One of the disadvantages of franchise opportunities is that the business owners don’t have space to be creative.
A franchise has higher upfront costs with perennial royalty payments to the franchisor. Franchises opportunities are more structured with plenty of rules to follow. This does not allow the business owners to implement the systems according to their own tastes.
Franchise opportunities play a pivotal role in fostering entrepreneurship which in turn results in the job creation all around the world. The franchise business model in the whole world is playing an important role in creating jobs on a faster scale and providing entrepreneurship opportunities for prospects in different industry verticals such as hospitality, automotives and education.
A sound business plan and a lot of hard work are prerequisite for the success of any business venture. It is essential that before going for a franchise business in any of the above-mentioned countries, you should do extensive research, surround yourself with those business owners who have been well acquainted with the process with the franchise business in that part of the world.
When choosing a Franchise business, the business owner should have complete information of the franchisor’s history in order evaluate its performance in its field of operation. It is not necessary that the franchisor should economically on a strong wicket to be credible. It is take prudence on the part of the franchisee to determine the credibility of the franchisor.