Microfranchising by Sireau Nicolas;

Author:Sireau, Nicolas;
Language: eng
Format: epub
Publisher: Taylor & Francis Group

Notes

1 Source of data: MLF data confirmed by using the Grameen Progress out of Poverty Index (PPI) that MLF road-tested for the Grameen foundation.

2 Visit our website: www.microloanfoundation.org.uk.

8

Creating the market and recruiting microfranchisees

Miguel Ramirez

SolarAid, Kenya

What are the problems with market creation?

As discussed in previous chapters, microfranchising is a tool that applies the proven marketing and operational concepts of traditional franchising to small businesses in the developing world. However, the actual framework can be difficult to set up and retain because of the challenging context in which the microfranchises operate. Households in rural areas are dispersed over large distances; communications, roads and infrastructure are scarce; incomes are low, often below $1 a day; most people make a living from agriculture or from the informal economy; and the market has to be created from scratch. This chapter will look at the implications of this and other issues that affect the creation of a microfranchise. It will start by analysing the problem of market creation: how to generate enough demand for a product so that extremely poor households become willing to pay what is for them significant quantities of cash. It will then look at the issue of franchisee recruitment, particularly how to identify and attract the most entrepreneurial people, and then how to manage, retain and motivate them to sell more. We will look principally at Sunny Money’s first microfranchise project in Kenya,1 and afterwards look briefly at VisionSpring and HealthStore Foundation’s approach to management, motivation and retention of their franchisees. Finally, the chapter ends with Nicolas Sireau (SolarAid’s first CEO)’s thoughts on branding Sunny Money.

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