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Own Boss, he says that with re­gard to job cre­ation, for ex­am­ple, al­most 500 000 new busi­nesses will have to be cre­ated if the govern­ment is to meet its tar­get of 5-mil­lion new jobs by 2020. “While for­mal sec­tor em­ploy­ment fell alarm­ingly in the two years from 2008 to 2010, the fran­chise sec­tor, which rep­re­sents 17 dif­fer­ent in­dus­tries, cre­ated 2 300 new busi­ness out­lets and more than 28 000 new jobs. In­deed, fran­chis­ing can go a long way in stim­u­lat­ing en­trepreneur­ship and help­ing peo­ple to es­tab­lish the suc­cess­ful small busi­nesses that are the back­bone of the econ­omy and job cre­ation.” Once a fran­chise sys­tem has been tried and tested, one can take de­ci­sions based on re­al­is­tic fi­nan­cial pro­jec­tions — and sub­se­quently mit­i­gate risk far bet­ter.

How­ever, he does not be­lieve that the big­gest chal­lenge fac­ing fran­chis­ing is the cur­rent eco­nomic cli­mate and banks’ con­ser­va­tive lend­ing poli­cies. “The big­gest chal­lenge is to get the mes­sage across about the very im­por­tant role fran­chis­ing can and does play in the econ­omy, and to ex­pand the con­cept to other in­dus­tries.”

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