The Brilliance of Micro-Franchising

Social Ventures Foundation are firm believers in the micro-franchising business model but today we are going to break down the specifics of what exactly micro-franchising means.

What is Micro-Franchising?

Franchising is a way to expand businesses through licensing relationships. Typically, a business can grant a license to a third party individual or company to offer products or services under their brand, and offer them training and support throughout the process. Franchising is a means for young people to create economic activity without a great deal of experience or capital, especially in the developing world. These entrepreneurs do not need to face the difficulties of starting a business from scratch but still have an opportunity to run a successful enterprise.

Why Micro-Franchising is Important?

Micro-franchising can expand to rural and hard-to-reach consumers that have largely been ignored by companies due to high delivery costs and their low purchasing power and thus are a great tool to tackle poverty reduction through the private sector. Young passionate entrepreneurs are able to create economic growth in their communities without the extra strain of creating the business from the ground up.

How does Micro-Franchising look in Action?

Micro-Franchising utilizes creative solutions to fix social issues as well as developing markets at the bottom of the pyramid. For example, in Haiti, 80% of people are vitamin deficient, as well as 70% are unemployed. Our own Micro-Franchise V’ICE is developed to battle not only the massive unemployment, as well as high rates of malnutrition. V’ICE’s smart solution that energizes the market and addresses public health challenges in a strong and simple Micro-Franchise.

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