Many SMEs are not able to survive beyond two years due to some challenges they face.
However, many of them are not able to survive beyond two years due to some challenges they face. This forces some of their employees to return to the labour market.
To reverse this trend, the Institute of Financial and Economic Journalists in partnership with Voltic Ghana Limited has held a workshop in Accra on the theme: “Franchising, the key to small businesses mentorship, growth and development”.
Speaking on the sidelines of the programme, Lawyer Kwame Jantuah touched on the need for SMEs and young people, in general, to move into franchising in an effort to correct the imbalances in the economy.
He believed that even though the franchising industry has its own problems, it is what the country needs now to boost its economy through the creation of jobs among others.
“We have seen how the franchise industry has helped America. We only have as you saw between Nigeria and Ghana 100 franchising companies which is woefully inadequate. But we need to strengthen our systems; we need to strengthen our structures. Our laws have to work if it so happens that there is some challenge between the franchisor and the franchisee.
“So we have a long way to go. But I think it’s a good thing especially with our young ones coming up; the youth to gradually start getting them to understand what all this is about so that they too they can get their loins and see that there’s a potential in that because the good thing is that everything is done for you in a certain stage. All you need to do is to take up and run with it but you need some money to be able to do that. And if we can do it, I’m sure it will be able to help the informal and small sector business to grow."
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On his part, the Commercial Manager of Voltic Ghana Limited, Mr Raymond Mensah Gbetivi said the aim of the workshop was to educate the public on all they need to know about franchising.
Even though some of the requirements needed by franchisors are strict, Mr Gbetivi said his outfit has relaxed some of the conditions to be able to attract more people to the industry.
A franchise is a business in which the owners, or "franchisors", sell the rights to their business logo, name, and model to third- party retail outlets, owned by independent, third-party operators, called "franchisees".
In Ghana, appropriate policies to lend support to franchising are not available and this creates challenges for people operating under the system.