I wrote previously on the difference between entrepreneurs and small business managers who own their own business or franchise. The franchisor in a successful franchise concept runs the marketing and strategy, and thereby keeps it on track. As a consequence banks are always prepared to fund these enterprises. This is critically important as one of the largest contributory factors to SME failure is insufficient working capital. Yes, they are terribly undercapitalised.
Therein lies the solution. Africa has very few entrepreneurs, and this is not the place to discuss the why. However, they can still create wealth, through the use of compliance models such as franchising.
Africa's future lies in franchising, both internationally and locally developed. Compliance models create bankable SME's. Bankable SME's create opportunities for wealth creation. Compliance models result in major risk mitigation.
Rob Smorfitt
To learn more about this author, visit Rob Smorfitt's Website.
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Rob Smorfitt
(Visit Rob's Website)
Based in Pietermaritzburg, South Africa.
Married with 3 children (22, 21 and 14).
Have an MBA and am currently doing a PhD
in entrepreneurial success. I have been
self employed since 1982. I have started
26 and bought 5 businesses since then.
Most were sold again and a few were shut
down because of a lack of profitability.
Many were run by staff or family while I
worked in full time employment in my
bigger businesses. 6 books written in SME
and Project Management educational field.
Written articles for various magazines,
newspapers and websites.
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