Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?

Sales Lessons From Starbucks And Dell

The UK Governments Promotion of Franchising



The UK Governments Promotion of Franchising
   

Clearly in the UK it is easy to start trading in business for the first time. There is minimal red tape allowing a sole trader, partnership or small limited company to form and trade quickly. There is also generous thresholds regarding turnover and having to pay VAT. This is important for business to domestic traders where the charging of VAT is a not a reclaimable item and increases the cost of service provision to the consumer. There is also the government loan guarantee scheme that can be applied for if the business concept qualifies. Business Link has an extensive resource section on its web site and provides much training and support to local business. There are compressive incentives for would be entrepreneurs to go into business in the UK compared to doing the same in other countries in Europe. However, there remains one key shortfall in the governments strategy to getting people into business; how does it help reduce the huge number of new business failures?

Most start up businesses fail within the first two years of trading and few make it to five years and over which is clearly a damaging statistic given the loss of capital, taxable income and hardship caused to those that are caught in business failure. In contrast statistics from the BFA NatWest franchise survey clearly show that most franchise businesses succeed and over 90% are running profitably. It is therefore surprising to note that the government has no clear integrated strategy for promoting and facilitating business format franchise development in the UK. This is further compounded by the fact that franchise businesses in the UK has grown its contributions to the UK’s GDP from £5.3 Billion to over £9.1 Billion over the past ten years alone. In addition there are now 327,000 people employed in franchising with the number set to rise as franchise business grows in the UK.

It could be argued that the franchise sector is growing successfully without government help as the number of business format franchise systems has risen from 414 in 1994 to over 700 in 2004. However, it is also worth pointing out that this number may have increased significantly with strategic government backing of the sector.

So what backing could the government provide? Firstly there could be grant packages that help quality businesses open up for franchise development in the UK. Business format franchising is effective but it is expensive to set up, launch and build. It usually takes around three years for a new franchisor to break even and some fail. This not only affects the franchise owners but also the franchisees that have invested their life savings into the franchise system. Specific funding for new franchisors via a government loan guarantee scheme could help resolve this problem and encourage more businesses into franchising. Government backed incentives to business and individuals could help reduce the number of new business failures. This would be a good move both politically and economically.

The Government needs to look at backing franchising in the UK more robustly across the board. Business Format Franchising is a success in the UK. It is a success because it makes new business people into successes and that is good for our economy and everyone in it. From clearer education about the benefits of franchising to funding and financial packages specially designed for the franchise sector in the UK, the government would do well to look at this seriously and do it soon.



The UK Governments Promotion of Franchising - To learn more about this author, visit Nick Strong's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
I Want to Take My Business to the Next Level
  If you are currently a business owner and thinking about taking the next step, franchising your business; you may want to take a close look at franchising. Franchising can make businesses very successful. Many bus...
Franchise Businesses Appeal to Women Entrepreneurs
  There are a number of reasons behind the mutual attraction between women entrepreneurs and the franchise world. While the former loves this field for the flexible timing and broad range of choices, the latter gets e...
THE HISTORY OF FRANCHISING
  Franchising has been considered to be one of the most amazing methods of marketing for many years now.
What is the government’s role in supporting microfinance? FAQ
  Governments have a complicated role when it comes to microfinance. Until recently, governments generally felt that it was their responsibility to generate development finance', including credit programs for the disa...
What is franchising? My personal definition!
  Working in the franchising community for 25 years, I have come to define the concept of franchising, based on my personal experience.

Related Forum Posts Related Forum Posts
January Forum Winner, New February Contest! January Forum Winner, New February Contest!
February Contest Winners, New March Contest February Contest Winners, New March Contest
Different Hats Different Hats
Re: Re Franchise etc Re: Re Franchise etc
Franchising vs. Licensing? Franchising vs. Licensing?
Great Article, chock full of info. Great Article, chock full of info.
Promotion Pack / Prize Pack Promotion Pack / Prize Pack
Re: Promotion Pack / Prize Pack Re: Promotion Pack / Prize Pack

 
About the Author


Nick Strong
(Visit Nick's Website)
Nick Strong launched www.se lectyourfranchise.com in October 2002. The site is now an industry leader and advertises over 450 franchise brands in the UK, USA and Canada. Nick has over ten years of experience in domestic and overseas franchise development. Nick is the Managing Director of Select Your Franchise UK Ltd which operates the website www.s electyourfranchise.com. Nick also specialises in franchisee recruitment and business development training. To find out more about the service Nick and his team can offer you please go to www.selectyourfranchise.com/ contact.html
Have A Suggestion?

View Author's Blog
Become An Author

View Author's Video
Become An Author

Free Downloads


Nick Strong's

Complete
List Of
Franchises
Articles

First Name
Last Name
Email
 
If you enjoyed this article, get Nick Strong's Complete List of Franchises Articles For FREE!
Become An Author