South African franchise brands contribute sub- stantially to the local economy and are penetrat-ing into the rest of Africa.
The outlook for franchise growth remains strong worldwide, with employment and output forecasts revised slightly upwards from January estimates, despite slower than expected growth in 2014 to date, notes the International Franchise Association.
Financial services company FNB head of fran- chising Morne Cronje notes that recent reports by the World Economic Forum indicate that South African companies dominated the latest World Economic Forum global growth companies list, as six local businesses were named the most dynamic in terms of growth on the continent.
“The South African environment has been con- ducive to attracting local and global franchise brands. As a developing economy, South Africa has harnessed the power of emerging technol-ogies to foster economic growth, which ulti-mately has helped the technologies to remain competitive in today's world,” he says.
Cronje adds that efficient and innovative technology has helped to build an infrastructure that has assisted businesses on many levels. As a result, FNB’s electronic business banking platform provides evidence of the ease and effectiveness with which technology can be harnessed to add significant value to small and medium-sized business banking clients.
He further highlights that a collaboration of ideas and corporate governance to attract foreign investment and new industries to South Africa have been at the forefront of franchise businesses in South Africa.
Cronje notes that, to capitalise on this investment, South Africa must continually invest in developing and assisting new talent in the market.
“Skills development and training from a franchiser point of view is crucial, as it will only contribute to a successful franchise. Also, women and youth are key to this, as they form an integral part of the business environment. This will not only contribute to the economy but also encourage business partnerships on all levels.”
Cronje mentions that, while collaboration and skills development for the sector remain important, continuous networks and the crea- tion of dialogue between the franchise indus-try, private sector and government are also important.
As a result, he points out that the yearly FNB Franchise Leadership Summit provides a plat- form for new and existing franchisees to show-case some of South Africa’s top franchisers and gives franchisees an opportunity to learn, network and contribute to the industry.
“Together we need to find innovative ways of integrating business efforts that will ensure that there is greater diversification in the business sector, as what lies at the heart of franchising is that it is not a business, but rather a way of doing business.