In our country, more than 24 crore people are living below poverty line. The reason may be low income, lack of investment capability, and lack of commercial approach. To change their lives Micro-credit is being provided to them to become self-employed and to start a small business. However, this is not sufficient; there must be a proper training to horn their entrepreneurial skills to run their business successfully.
Here comes the concept of Micro-Franchising, where the Franchiser provides high quality initial training to manage the business successfully and apply the proven marketing and operational concepts of traditional franchising to micro businesses and also focuses on development issues like health, sanitation, and energy. From this type training, the people who are not from the entrepreneurial background are also able to succeed. HUL, DRISHTEE, VISIONSPRING, GRAMEENA TELEPHONE, and LIJJAT are some of the examples of successful companies who relayed on this concept of Micro- Franchising.
When compared with an individual entrepreneur, the franchiser is much better in negotiating with suppliers and reaching economies of scale in other areas (such as product design, use and development of new technologies and supply chain development). Micro finance and Micro credit are the practical development strategies implemented to achieve the development goals of the Micro businesses.
Micro franchising is very much beneficial to the small businesses. Some of them are generating self-employment, reducing risk from traditional business, ensures success, and increases creativity through skill development programs. Micro Franchising encourages small enterprises for better access to markets, finance, and business linkages. It mainly focuses on youth and women, as well as the family farms that employ so many people in India.
Formation Of SME Clusters
Growth of MSEs in India
How To Find If A Firm Is Micro Enterprise In India
Development measures for MSEs in India
Significance Of Micro Businesses In India
Government Owned Business in India