There is a high rate of business failure in Nigeria (80% of start-ups in 5 years) caused by ease of doing business and limited capacity related challenges of the entrepreneurs.
This situation has become precarious to the economy driven by the enterprises, and to other stakeholders of the enterprise ecosystem such as the entrepreneurs, funding institutions and employees who are harmed by each failed business.
However, franchising, with globally minimal failure rate (15% globally and 5% in South Africa), has proven to be one of the most successful business models in recent years. In both developed countries and emerging markets, franchising ensures business growth and encourages entrepreneurship and skills transfer. It has generated new incomes and improved standards of living in countries where it has been practiced. More specifically, for existing SMEs and new business start-ups, franchising is a means of developing entrepreneurial talent, promoting good corporate governance, increasing transparency and attracting the informal business sector to the formal sector.
Through the services of FBDS, the above mentioned challenges are being mitigated, resulting in Social, Enterprise and Economic developmental impacts in Nigeria.
Thank you FBDS. It was a great pleasure working with you on the franchise study: Tackling access to finance – Unlocking the potential of franchising in Nigeria. We are excited about the role you took up to ensure the implementation of the recommendations of the study in Nigeria and the resulting impact of the effort in line with UKAID desired development goals.
Thank you Franchise Business Development Services International Limited (FBDS), for having come a long way to hosting this forum and this is the third in the series. It is a thing to behold that you deem it important to create this necessary awareness as it is in line with the vision of the Ministry to promote economic growth, create jobs and generate wealth.