Encouraging Entrepreneurship through Franchising | Original Article

ABSTRACT:

Entrepreneurship is an act of undertaking innovations or introducing new things, finance and business insights, in an effort to transform those innovations into economic goods. In India, entrepreneurship is primarily considered as starting a new business. It comes with a sense of innate freedom and creativity but is followed by an inherent set of risks. Starting a business has long been considered a risky proposition. Just the potential for failure and loss discourages many would be entrepreneurs from giving it a go. This is where franchising comes to the rescue. Franchises are wise as they come on board after the parent company has made all the major mistakes that will come with their new idea. Doing so, franchisees reduce their risk. Further, investing on a proven business model also paves the way for economic growth, employment growth, and export income fuelling activity in the small and medium enterprise (SME) sector. This report will provide an insight on how franchising can act as a pathway to entrepreneurship and the creation of wealth.