300 firms to benefit as Lagos launches MSMES’ franchise scheme
OVER 300 small businesses are targeted to benefit directly as the Lagos State Government is set to launch a franchise framework development scheme for Micro, Small and Medium Enterprises (MSMES) operating in the state.
Solape Hammond, the special adviser to the state governor on Sustainable Development Goals (SDGS) and Investment, who disclosed this, said the scheme designed to expand the frontiers of the local market, evolved out of the need to further strengthen the existing public-private business ecosystem with the aim of developing the sub-sector.
“Out of the need to strengthen the existing public-private business ecosystem with the aim of developing the subsector, Lagos State Office of Sustainable Development Goals and Investment in partnership with Franchisors and Distributors Forum will be launching an initiative tagged ‘Franchising as an Investment Alternative in Lagos State: A capacity building for 300 Lagos MSMES”, Hammond said.
She said the programme targets MSMES in the classic franchise domains, including product manufacturing, services, food and drinks, health and wellness and other personal care services, professional services, investors/commercial banks, cooperative societies, media as well as other MSMES and individuals within the value chains.
According to Hammond, the pilot scheme, which is designed to expose 300 MSMES to the franchise business system, will support these Lagos-based franchises to develop their unique franchise model and help them get investmentready.
There will also be a periodic financing forum for both franchisors and franchisees to help deepen opportunities to collaborate.
“Part of the plan is to identify 20 MSMES with the strong potential of growing between five outlets in the first year and 10 in the next 30 months and then provide the structure and franchise growth support, including various intellectual property registrations”, she said.
Hammond, who explained that the business model was crucial to job creation, economic diversification, creativity and income redistribution, stated that the state has shown tremendous interest in helping SMES get access to affordable financial and other institutional support they need to create wealth and employment for the youth.
“Lagos being the hub of MSMES on the west coast, with a concentration of 3,224,324 micro operators and over 11, 663 SMES operators will benefit from this business model as part of efforts towards building an inclusive economy”.
She emphasised the need for a fair platform for partnerships and linkages between operators and government agencies to discover innovations and opportunities that will boost the economy, adding that the simplicity of franchising makes it a good way to unleash the growth potential of MSMES.