Using franchises to promote small enterprise development

Henriques, Michael; Nelson, Robert E.

doi:10.3362/0957-1329.1997.004

Cited by 3 publications

(5 citation statements)

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“…Microfranchising has been advanced as a potential solution for the rapid scaling of poverty alleviation efforts in BOP markets (Christensen et al, 2010;Fairbourne et al, 2007;Henriques & Nelson, 1997;Magleby, 2007). Our study seeks to extend theory by examining to what degree the traditional drivers of franchise performance are relevant in BOP markets and to what degree microfranchises are able to capture the intended benefits.…”

Section: Discussionmentioning

confidence: 99%

“…: (614) 688-4107; e-mail: kistruck_1@ fisher.osu.edu, to Justin W. Webb at justin.w.webb@okstate.edu, to Christopher J. Sutter at sutter_70@ fisher.osu.edu, and to R. Duane Ireland at direland@mays.tamu.edu. franchising across such a wide range of industrial and geographic settings has generated research interest in the potential of franchising as a viable model within base-of-thepyramid (BOP) markets (Henriques & Nelson, 1997;Kistruck & Beamish, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…franchising across such a wide range of industrial and geographic settings has generated research interest in the potential of franchising as a viable model within base-of-thepyramid (BOP) markets (Henriques & Nelson, 1997;Kistruck & Beamish, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Microfranchising in Base–of–the–Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model

Kistruck

Webb

Sutter

et al. 2011

Entrepreneurship Theory and Practice

123

150

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Microfranchising has attracted interest as a potential strategy for rapid scaling within baseof-the-pyramid (BOP) markets. However, our findings suggest that while microfranchising might provide a number of social benefits to microfranchisees and underserved communities, the institutional contexts that characterize BOP markets create a number of significant challenges to the economic sustainability of the microfranchisor and the overall microfranchising model. Simultaneously, our data also suggest several unique adaptations to the microfranchising model that might help mitigate the institutional challenges associated with agency concerns, resource scarcity, and branding/standardization within BOP markets.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Microfranchising in Base–of–the–Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model

Kistruck

Webb

Sutter

et al. 2011

Entrepreneurship Theory and Practice

123

150

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“…First, these businesses continue to be largely ignored in the literature despite mobile franchises growing in popularity (e.g., in Australia, Chow and Frazer, 2003) and, second, they are typically owned and operated by a single individual or a couple so the transition process is a very personal experience. In choosing to study the translation of microbusinesses to a franchising model we need to differentiate the businesses we studied from microfranchises in impoverished base-of-the pyramid (BOP) markets such as those found in under-developed countries (See Henriques and Nelson, 1997;Kistruck, Webb, Sutter and Ireland, 2011).…”

Section: Establishing the First Franchise Opportunitymentioning

confidence: 99%

“…in Australia, Chow and Frazer, 2003), and second, they are typically owned and operated by a single individual or a couple so the transition process is a very personal experience. In choosing to study the translation of microbusinesses to a franchising model, we need to differentiate the businesses we studied from microfranchises in impoverished base-of-the-pyramid (BOP) markets such as those found in under-developed countries (see Henriques and Nelson, 1997; Kistruck et al ., 2011). “Micro” in our study referred to the number of people required to run the business rather than the size of their financial investment or any associated intention to generate social benefits for those in underserved communities (Fairbourne et al ., 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

Franchising microbusinesses: coupling identity undoing and boundary objects

Mills

Jeremiah

2020

IJEBR

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PurposeThis study presents an original empirically based conceptual framework representing mobile microbusiness founders' experiences when converting to a franchise business model that links individual-level variables to a sociomaterial process.Design/methodology/approachAn exploratory interpretive research design produced this framework using data from the enterprise development narratives of mobile franchisors who had recently converted their mobile microbusinesses to a franchise business model.FindingsThe emergent framework proposes that franchisor’s conversion experience involves substantial identity work prompted by an identity dilemma originating in a conflict between role expectations and franchising operational demands. This dilemma materializes during franchise document creation and requires some degree of “identity undoing” to ensure business continuity. By acting as boundary-objects-in-use in the conversion process, the franchise documents provide a sociomaterial foundation for the business transition and the development of a viable franchisor identity.Research limitations/implicationsThere is scant literature addressing the startup experiences of mobile microbusiness franchisors. The study was therefore exploratory, producing a substantive conceptual framework that will require further confirmatory studies.Practical implicationsBy proposing that conversion to a franchise business model is experienced as an identity transformation coupled to a sociomaterial process centred on system documentation, this original empirically based conceptual framework not only addresses a gap in the individual-level literature on franchise development but also provides a framework to direct new research and discussions between intending franchisors and their professional advisors about person–enterprise fit.Originality/valueThe conceptual framework is the first to address franchisors' experience of transitioning any type of microbusiness to a franchise business model.

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Agricultural growth multipliers for two communal areas of KwaZulu-Natal

Hendriks¹,

Lyne²

2003

Development Southern Africa

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Expenditure data were collected from 99 households in two rural areas of KwaZulu-Natal. District and wealth group expenditure analyses suggest a less-than-proportional increase in the demand for tradable farm commodities, and a more-than-proportional increase in the demand for non-tradable farm commodities following a 1 per cent increase in household expenditure. Expenditure on non-farm tradables (imported consumer durables) showed the greatest potential for demand growth, with expenditure elasticities ranging from 1,75 to 2,59. An increase of R1,00 in household income is predicted to add an additional 28 cents (multiplier of 1,28) to the local economy. The study estimates relatively weak growth linkages. However, even relatively weak growth linkages could lead to much needed new income and employment opportunities in the local farm and non-farm sectors if the constraints limiting agriculture, and hence broad-based growth in rural incomes, are alleviated. Agriculture-led growth in South Africa requires public investment in both physical and institutional infrastructure to reduce transaction costs and risks in all markets, thus encouraging greater participation by local entrepreneurs and private sector investors. In addition, the roles, functions and services offered by extension agents should be extended to promote collective marketing, facilitate land rental contracts and provide training, technical and business support for farm and non-farm entrepreneurs.

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Using franchises to promote small enterprise development

Cited by 3 publications

References 0 publications

Microfranchising in Base–of–the–Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model

Microfranchising in Base–of–the–Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model

Franchising microbusinesses: coupling identity undoing and boundary objects

Agricultural growth multipliers for two communal areas of KwaZulu-Natal

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