Microfranchising Case Study
Microfranchising an Inclusive Business Model By SUNANDA S Ph.D. Student
FMS, Delhi University, New Delhi
I. Introduction:
“Microfranchising” a business model which is used as an economic development tool is currently prevailing in many developing countries, especially India. The proponents of Microfranchising in Brigham Young University (BYU)’s Marriott School define “microfranchise” as small businesses that can easily be replicated by following proven marketing and operational concepts. BYU points out that the “overall objective of Microfranchising is to promote economic development by developing sound business models that can be replicated by entrepreneurs at the base of the pyramid; therefore, the start-up costs of Microfranchises
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Significance of Microfranchising Model in India:
India, irrespective of its impressive economic growth over a period of time is still lacking inclusive growth, facing poverty, especially in rural areas, in-access to goods and services for people at the bottom of pyramid in rural areas, lack of employment opportunities and employability.
It has been observed that “Poverty is widespread in India with 37.2 per cent people below poverty line”(Source: GoI, Economic Survey, 2012), “which in otherwise implies that the nation estimated to have a third of the world's poor”(Source: World Bank: 2012). In an USAID Report (2011) it has been pointed that “India’s economic and social progress is critical to achieving universal Millennium Development Goals. The BOP segment of the population lacks education, workforce skills, social capital, and access to the primary health care and basic infrastructure that would allow them to benefit from India’s economic growth. Thus this large section of Indian population are in need of improved access to a wide range of vital goods and services such as water, sanitation, energy, telecommunications, transportation, financial services, basic construction materials, health & hygiene products, etc” (Source: http://transition.usaid.gov/in/ourwork/health/index.html and
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