If you are a keen observer of business trends and have been monitoring the Asian markets in the last few years you must have observed the rise of small business enterprises.
Many business models and approved practices that originated in Western markets have been met with success even in the Asian markets. Let us talk about ‘franchise system’. In the last few years business franchising has fleetingly gone ahead to capture the markets. Business analysts have been wondering and have worked in their own capacity to decipher the trend.
The closest they have been in understanding the large-scale growth is by examining certain indicators and parameters, like the economic conditions, consumer behaviour and demand, available infrastructure, etc. If we take franchise system as the case study than 3 things that have helped franchise to grow in India are:
1. Rise of the middle class: The rise of the middle class, especially in India, has been one of the favourable factors for the cosmic increase of the franchise model. A multitude of entrepreneurs from this very section of the society have joined the existing business groups as franchisees. There is a burning desire among the new joinees especially the youth who are popped with ideas and driven by ambitions.
2. Globalization: Though it is a very laden term, but very few people would doubt its interference with the regional or local business. The exposure to the vast opportunities and the availability of the expertise and knowledge have helped in the over expansion of small business enterprises, especially the franchise business. It is a global phenomenon and the business is intricate and connects the whole world now.
3. No time to Start from the Scratch: With the power of money, people do not want to waste time in experimenting with their own ideas or starting from a mere scratch. They have become start, read the success stories, the trends, what is in demand and then enter directly as franchisees. Though growth rate is more or less restricted but the chances to have successful business are quite high.
These 3 things that have helped franchise to grow in India are like sermons upon which people have been investing their time and money. In a country like India, or at a larger level that is Asia, the same story has been repeated.