Research on MicroFranchising
While the concept of microfranchising sounds simple and exciting, and successful models are starting to emerge, there are endless opportunities for research in methodology and impact evaluation. One university that is dedicating specific resources to researching the field of microfranchising is Brigham Young University in Utah. Their business school houses a Center for Economic Self-Reliance which conducts research with partnering organizations to help families become economically self-reliant. They have a specific MicroFranchising Initiative and have published a series entitled “Where There Are No Jobs” which consist of handbooks for business training of microentrepreneurs and case studies of microfranchises.
They are also sponsoring the publication of a new book that is currently coming off the presses called, MicroFranchising: Creating Wealth at the Bottom of the Pyramid authored by Jason Fairbourne, Stephen Gibson, and W. Gibb Dyer. My copy is yet to arrive but I look forward to reading their outlook and forecast of the movement.
I am personally aware of a number of organizations that are experimenting with the concept and hopefully integrate monitoring and evaluation into their models to help all of us learn from their experiences.
In the last Post: My forecast of immediate needs
In many articles related to Microfranchising, I have read Indian Cooperative Movement, Amul Model as a successful microfranchising. In this Model, the Amul is procuring milk from small women entrepreneurs, who are members of the cooperative society and enabling an efficient supply chain management and market access for the rural product, i.e milk. At the same time in Microfranchising, a company or corporate is trying to penetrate into rural areas with an innovative successful business model, which the small entrepreneurs can take it forward with the same brand. So I am confused whether Amul and Sewa model come under microfranchising?
In SEWA Trade Facilitation Centre Model also both Small Entrepreneurs Women’s Association (SEWA) and International Finance Corporation (IFC) are giving market access for small women entrepreneurs who are into rural handloom sector. In Amul and SEWA models the corporates/SHG are facilitating capacity building, training, microfinance, brand, etc for the small entrepreneurs. However, instead of selling the corporates products in rural areas, the reverse small entrepreneurs rural products are marketed by established Self Help Groups or Corporates.
I would be grateful if could please clarify whether this reverse model also comes under Microfranchising. In this there is a great social element as it is creating livelihood for a number of small entrepreneurs, who otherwise individually would not be able to access such a wide national and international market for their rural products. They are getting better prices and it eliminates intermediaries from the value chain.
I look forward to your positive response.
Hello Sarada–
I’m sorry I did not respond sooner, I just discovered your post in an old email.
As far as defining certain projects as “microfranchises”, I think both the term and movement are so relatively young that fine distinctions are not yet possible or needed. At this point citing examples of microfranchises is more inclusive than exclusive. Both Amul and SEWA can be appropriately labeled as microfranchises in today’s discussions.
When I think about designating a certain venture as a microfranchise I think of two questions: (1) is the social mission primary in the goals and objectives of the venture? (2) is the basic operation or service being standardized and replicated?
Does anyone else have any thoughts?