Original Research

Franchisors on the financing and other problems of prospective franchisees

A. M. Smit
South African Journal of Economic and Management Sciences | Vol 5, No 3 | a2749 | DOI: https://doi.org/10.4102/sajems.v5i3.2749 | © 2018 A. M. Smit | This work is licensed under CC Attribution 4.0
Submitted: 06 August 2018 | Published: 30 September 2002

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A. M. Smit, Potchefstroom Business School, Potchefstroom University for Christian Higher Education, South Africa

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The current high unemployment rate and the need to develop the SME sector in South Africa, has highlighted the franchise sector as a possible generator of employment and wealth. Certain problems in the SME sector, for example the lack of financing, were identified and investigated from the viewpoint of the franchisor. This study attempts to analyse the general problems that prospective franchisees are confronted with and then focuses on the more specific problems regarding financing as experienced by the prospective franchisees.


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