Franchising: the hope of SMEs
The last two years of living through a global pandemic has left South Africa with a record-high unemployment rate, reported BusinessTech in February 2022. Thousands of people have lost their jobs or have now become ‘discouraged work seekers’. Now that the 750 Day State of Disaster has been lifted, we can truly live and work within this “new normal” and start to rebuild the local job market. With this in mind, the National Development Plan’s vision is that by 2030, 90% of all jobs will be created by SMEs.
SMEs are the key to job creation
Fortunately, it is well-known that the key to truly uplift an economy is via the small and medium-sized enterprise (SME) sector. Although there is often a call for entrepreneurship, the risk of starting your own business from scratch is extremely high; this is true in South Africa and across the world. By encouraging the creation of small and medium businesses ― and in particular, franchises with proven business models and entrenched support structures ― the country can create more jobs and generate income-earning potential. Franchising gives the private sector the opportunity to re-employ those who have been retrenched (sometimes in small towns around the country), particularly after the last two years – plus make a concerted effort to get closer to that 2030 goal.
Why opt for franchising?
Entrepreneurs who found start-ups are creating their business model, as they are building their company and learning on-the-go. Franchising, however, gives you a proven business model (a recipe to follow) and a recognisable brand that people more than likely already know about. Franchises, such as Cash Converters, have a strong, proven business model and extensive institutional support – including site selection, training and marketing ― which thousands of other businesses don’t offer.
“It’s an exciting industry that makes up, in southern Africa, about 12-14% of the Gross Domestic Product (GDP) of the countries here, employs a significantly high number of people and contributes to the growths of our economies,” says Richard Mukheibir, Co-Founder and CEO of Cash Converters Southern Africa.
Why choose Cash Converters?
Franchising with Cash Converters is not just about having a successful business – it’s about community and keeping the economy alive. As a franchisee, the relationship you have with your community is crucial. If customers have a good experience at your store, they are more likely to come back again – and for loyal customers, a certain Cash Converters’ franchise might become a go-to store for them. Over the years, successful Cash Converters franchises dotted all over the country have become so much more than simply ‘part of the neighbourhood’; they have become a pillar for the local community.