If you thought of microfinance as an effective tool to eradicate poverty you will certainly be impressed by what the next step, MicroFranchising, could achieve. MicroFranchising is in short the replication of small businesses using proven operational methods. Not everyone is an entrepreneur (not in industrialized nations nor in developing countries) but there are many people that are willing to work hard and develop their skills. MicroFranchising will not only create microentrepreneurs but sustainable businesses and employment opportunities. This subject currently brings together a lot of different organizations; NGOs, foundations, microfinance related institutions, academia, social entrepreneurs, social and private investors and MNCs. The best resources on this subjet are BYU, The Academy for Creating Enterprises (ACE) and the reports written by Kirk Magleby. In terms of successful model cases of MicroFranchising I would recommend to read about Scojo Foundation, Grameen Village Phones, and CFW shops.
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I am working with Greatergood,SA on loan from American Jewish World Service, both firms heavily involved with NGO's. My task is to work these NGO's on improving their business and marketing skills. While doing this I encountered, what I believe, to be a significant microfranchise opportunity but I have no idea who to approach or how to proceed.
Think "sewing cafe"....Africa has large townships badly needing small businesses. I believe a case can be made to franchise 6 sewing machines available to the women on a per hour basis, similar to an Internet cafe. The idea is that they could rent the use of these machines, and learn to make clothes for their children...various small amounts of fabric would be available as well as patterns. Learning how to do this for their families would also learn them a useable trade. I have not worked out a budget but I know, as with most micro-franchises that I've studied, the key is to find a lead individual with an entrepreneurial bent.
I'd be interested in your guidance and/or suggestions.
Tracked on Carole Eglash : June 1, 2007 01:28 PM
Dear Carol,
Sorry for the delayed reply.
I think the sewing café is a very interesting idea.
Maybe I have not understood well your concept so pls correct me if I am wrong.
If is franchising the “sewing café” which provides rental of sewing machines in a given location it might be difficult or expensive to franchise these unless it is a social franchise (where someone provides the rent and/or sewing machines for free)
Another way to go is take the model like the telephone ladies of Grameen Village Phone in which one person purchases gets a sewing machine by making a loan or on consignment basis, then she takes it home and uses it for her business but also rents it out to her neighbors in her township for a per hour fee.
Hope this helps, Naoko
Tracked on Naoko Felder : June 26, 2007 06:53 AM