Franchising as a mechanism for economic empowerment in South Africa.
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Date
1999
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Abstract
South Africa is currently undergoing a phase of transformation that has indicated
a shift from institutionalised oppression in all political, social and economic
spheres to a society that is ideally open, free and democratic. Many aspects of life
in South Africa are therefore changing as this transformation process is
proceeding. It is this transformation process that has prompted interest in the area
of economic empowerment amongst those who were previously disadvantaged in
the "old" South Africa. The previously disadvantaged represent a large
percentage of potentially economically active members of South African society.
However, because of a high unemployment rate, other alternative forms of
employment need to be sought, mainly through entrepreneurial endeavours. One
such alternative, which is presented in this study, is the possible role that the
franchise industry may play in economically empowering people that were
previously disadvantaged.
The purpose of this study is to theoretically and empirically examine the potential
of franchising to act as a mechanism for economic empowerment. It explores the
perceptions of franchisors, franchisees and financial institutions in regards to the
current state of the franchise industry in order to assess the extent to which
franchising does or does not act as a mechanism for economic empowerment.
Conclusions have been drawn to correlate the theory and the empirical analysis of
the surveys that were undertaken. It has been found that in many ways,
franchising may act as a mechanism for economic empowerment but there are
factors that inhibit the role that franchising can play in promoting this form of
entrepreneurship. Where these negative factors have surfaced, a methodology has
been presented in order to minimise such effect.
Description
Thesis (M.Com.)-University of Natal, Durban, 1999.
Keywords
Franchises (Retail trade)--South Africa., Economic development., Theses--Economics.