Franchising 'less risk' for start up SMEs
Nov 28 2007
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Franchising is on the increase as it 'presents less risk for someone who's looking to go into business', according to the British Franchise Association (BFA).
Start-up SMEs and entrepreneurs can make their first steps into business less risky with the backup and support of a national brand behind them, says the organisation.
Pip Wilkins, client services manager for the BFA, says: 'The failure rate is a lot less when you compare it to start-up businesses where people have gone it alone.'
On the other hand, it can be difficult for entrepreneurs to enter franchises due to the small number of people taken on in the schemes by bigger brands, states the BFA.
Established franchisors may only take on one out of every hundred different people that apply for a franchise scheme and have the necessary funds.
Earlier this year the BFA/Natwest UK franchise survey revealed that the franchise industry had grown by 4.9 per cent during last year.
The annual turnover of the industry has been estimated at £10.8 billion.
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