Stakeholders identify franchise as tool for economic sustainability, job creation
Stakeholders have urged that adequate legislation be put in place to boost franchise development in Nigeria.They argued that the sector contributed hugely to the local economies of America and South Africa, which contribute about 19 per cent to its Gross Domestic Product (GDP) in 2019.
Chairman, Access Bank Plc, Ajoritsedere Awosika, made the call during a webinar organised by Franchisers and Distributors (FRANDIS) Forum, themed: “Job Creation during and post-COVID-19: Franchising as an Investment Option for SMEs and SME Development in Nigeria.”
Awosika, who identified franchise as a tool for economic sustainability and job creation, noted that it was time Nigeria took franchising as an expansion model for Small and Medium Enterprises (SMEs).She urged that existing and successful SMEs in need of expansion should be identified that could apply the franchise model for business success.
Guest Speaker and Board Chairman, SMEDAN, Femi Pedro, decried that the franchise sector is underappreciated in Nigeria, because it ignores its job creation potential.
Pedro, a former Deputy Governor of Lagos State, also said the model benefits both the franchiser and the franchisee in terms of economic returns, thereby making it a symbiotic relationship.
Founder of FRANDIS Forum Lagos, Tayo Adedugbe, said it was time Nigeria developed a policy in the franchise business system for economic sustainability.
He harped on the need to also create a Franchise Development Fund, “Just like we have created funds for the development of the Nollywood and Creative sector, we need to also create a Franchise Development Fund.
“The interesting fact about this model is that it creates jobs for the skilled and unskilled, the educated and uneducated. We have to look inward and create franchises from supermarkets, technology hubs, schools, hotels, hospitals, manufacturing, sports, creative sector, and many other sectors.”