MPs meet franchising ambassadors to discuss opportunities for start-ups
Industry leaders laud robust business model for first-time entrepreneurs
MPs and franchise industry leaders have met at the Houses of Parliament to discuss the economic impact of franchising – and the benefits it offers Britain’s start-up entrepreneurs.
The meeting, organised by the British Franchise Association (bfa) and Gosport’s MP, Caroline Dinenage, explored the ways in which franchising can foster sustainable business growth, encourage new start-ups, and stimulate job creation.
The consultation, attended by a total of 30 MPs, follows the recent Natwest bfa Franchise Survey, which showed that more than 90% of UK franchisees are reporting profits.
The study further revealed that the rate of commercial failure in this field is currently less than 4% a year – making franchising between six and 10 times stronger than conventional business start-ups.
The UK currently hosts 897 different franchising brands, with 36,900 individual franchise owners leading the employment of over 520,000 people. This generates £12.4bn for the UK economy each year.
However, with a growth rate of approximately 6%, that figure looks set to rise – suggesting opportunities for new business start-ups and job creation.
Brian Smart, director general of the bfa, said: “The success rates are no surprise. Franchising operates through a locally owned and run, proven business concept, driven by enterprising individuals. With training, branding, economies of scale and support from the wider network, this removes or reduces many of the hurdles that floor most small businesses.”
Caroline Dinenage added: “With significantly better success rates than other businesses, the franchise industry is key to promoting job creation, economic growth and an entrepreneurial culture. MPs will now be in a position to encourage this fantastic business model in their own constituencies.”