BOOMING SECTOR
Franchising ‘has ability to grow in tough conditions’
Franchising continues to show strong signs of growth despite SA’s general poor economic performance in recent years. According to figures from the Franchise Association of SA, the sector’s share of the country’s GDP in 2017 stands at R587bn, or 13.3%, an increase from the 11.6% of GDP recorded in 2016. The number of outlets (franchisees) rose from 31,111 to 40,528 and the number of franchise groups (franchisors) grew from 757 to 845 in 2017. The sector now employs 343,319 people, an increase of 14,074 jobs from 2016. According to Jeremy Lang, regional GM at Business Partners, a specialist risk finance company for formal small and medium enterprises, the franchising sector is growing on all fronts, and is increasingly offering opportunities for local entrepreneurs and enabling the creation of employment opportunities — something SA desperately needs as the economy continues to shed jobs. Lang said the franchise sector’s apparent ability to continue to perform in a weak economic clima...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.