1

From Harm to Home | Rescue.org

IRC Microfranchising

Paolo Cernuschi, Zimbabwe Programs Coordinator

SMEAZ Workshop, 29 January 2013

2

From Harm to Home | Rescue.org

New Market Entrant Employment Mismatch • High unemployment minimal job

opportunities • Past initiatives provide

opportunities not matched to market needs

• We would need to create over 100 million jobs within the next 20 years to have enough jobs for the growing number of young people (UNESA, 2010).

3

From Harm to Home | Rescue.org

What is a Microfranchise • Modeled after traditional franchises in the US

and Europe• Small businesses replicated from bigger

existing business:– proven business concepts– established brand– defined operations– defined cost structure

• Microfranchises have minimal startup costs and are easy to maintain

4

From Harm to Home | Rescue.org

Definition of a Microfranchise Systematize Replicate

5

From Harm to Home | Rescue.org

What is the difference between Microfranchise & Microfinance ?

VS.

6

From Harm to Home | Rescue.org

Why Microfranchise?• The franchisor has done the work• The franchisee needs to simply follow

existing guidelines• Pairs a successful entrepreneur with those

who lack the skills and capital to develop and start their own business

– Benefiting the individual with the new business

– Benefiting the existing business by expanding their customer reach and market share

7

From Harm to Home | Rescue.org

Example of Microfranchise

8

From Harm to Home | Rescue.org

Potential Role of NGO in Microfranchise General • Create a microfranchise from scratch • Invest in existing micro-enterprise and support its

replication as a franchise IRC• Facilitators of franchise development

9

From Harm to Home | Rescue.org

IRCs’ Preparations for Microfranchise Development

• New Market Entrant Assessment • Specific needs• Interests • Potential local partners

• Franchise Assessment• Scalability• Profitability • Management Team

10

From Harm to Home | Rescue.org

Sierra Leone- Microfranchising Year 1 • Pilot project took place 2009- 2010• 100 youth matched with 7 franchise businesses • Youth receive training, mentoring and startup • Results (After 7 months): 100% still engaged, 83% making profit

Year 2• More detailed market assessment conducted, 1 franchise business

chosen • 154 youth receive package of support and startup Splash

microfranchises

11

From Harm to Home | Rescue.org

Kenya – Girls Empowered by Microfranchise Year 1 • Market & Girls assessment conducted• 4 Business identified • Local consulting firm and youth organizations identified • Curricula developed• 250 girls trained and microfranchise started

Year 2 • Continue to scale up• Monitor progress• By end of Year 2 reach 2400 Lead Girls & Buddies

12

From Harm to Home | Rescue.org

Thank You!!!!