Francast Report 2019-11-16

Franchising to Boost Job Creation Amid Economic Downturn

Given the current economic downturn that is leading to an acute situation of rising unemployment, an increasing number of people are likely to turn to low-cost franchising opportunities

Franchising to Boost Job Creation Amid Economic Downturn

The recent National Sample Survey Office (NSSO) report shows that the unemployment rate in the country in FY 2018-19 was at 5.3% in rural India and 7.8% in urban India, resulting in overall unemployment rate of 6.1%. As per market estimates, current unemployment in India is at a 45-decade high. The situation is aggravated with the spurt in instances of job losses from automobile manufacturers to biscuit makers. For instance, the automobile sector which makes up for almost 7.5% of the country’s GDP and almost half the manufacturing GDP, has laid off 3.5 lakh employees.

This is because consumer demand has shrunk dramatically over the last 10 months of sectoral slowdown. Many other sectors, including real estate, banking and FMCG, are feeling the heat as well, but haven’t yet sizzled completely under pressure. While economic conditions are not permanent and are expected to recuperate in sometime, the lay-offs highlight the big employment gap to be covered in the market.

Major Boost for Franchising

Past recessions and economic downturns have clearly shown that people turn to franchising in times when the economy is strained or could likely become strained. Why? People want more control of their future with a business that comes with proven systems and support. It is globally proven that during a slowdown franchising is the established format to fix the economic stress by giving people opportunities to start a small business without much knowhow.

Approximately 1.5 million people are currently employed by franchised businesses in India. With the current economic conditions, low-cost franchises with investment below Rs 25 lakhs will be in high demand. In addition, industry’s big push on micro franchising and fulfilment services is expected to convert the 50 million people employed in the unorganised sector towards higher paying blue-collar jobs in the franchise businesses. An average franchise unit employs between 8-20 people with 70% in blue-collar and 30% in white-collar jobs. Further, a large young population indicates high entrepreneurial energy in the country.

This is where the franchise model helps through shared ownership. In fact, 53% of the brands offer franchise at a start-up cost of less than or equal to Rs 5 lakhs, thereby addressing the high entrepreneurial drive in the country at the bottom of the pyramid. Notably, 84% of the franchisees in India are post-graduates and graduates. Overall, franchise employment is projected to grow by 35% annually, continuing to outpace the rest of the economic sectors. By the end of 2019, the franchising industry is set to have 2.5 lakh outlets through over 5,000 brands.

 

Comment
image
image
mobile
address
star franchise india
Related opportunities
  • Quick Service Restaurants
    Delhi’s favourite chain of fusion cafes for takeaway, Hashtag Pizza..
    Locations looking for expansion Haryana
    Establishment year 2019
    Franchising Launch Date 2021
    Investment size Rs. 5lac - 10lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • Ayurvedic, Herbal & Organic Products
    Fight COVID19 Together    We are manufacturing Government Certified N95 and KN95&..
    Locations looking for expansion Uttar pradesh
    Establishment year 2020
    Franchising Launch Date 2020
    Investment size Rs. 10000 - 50000
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Ghaziabad Uttar pradesh
  • Yoga Classes
    we runs several courses in all over India of Yoga..
    Locations looking for expansion Uttar pradesh
    Establishment year 2012
    Franchising Launch Date 2014
    Investment size Rs. 10000 - 50000
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Lucknow Uttar pradesh
  • Healthcare & Medical Products
    About Us: Year of establishing company & Brief content of company:..
    Locations looking for expansion Delhi
    Establishment year 2015
    Franchising Launch Date 2019
    Investment size Rs. 10000 - 50000
    Space required 50
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads