What Are The Challenges Faced By Young Entrepreneurs In India While Franchising
According to Klynveld Peat Marwick Goerdeler (KPMG) and Franchise Association of India (FAI) report, Indian franchise industry is expected to increase to $51 billion in the next four to five years from the present 13.4 billion. While expanding, the franchise industry is expected to contribute to India’s GDP by 4%. (Short para)
India is becoming a sizzling market for International franchisors. Demand for international brands remain strong in automotive, food and beverage, retail, education, hospitality, healthcare, and fitness industry. The demographic transformation is booming, which has led to a population of over 250 million middle-income Indians with high incomes, changing their lifestyles. The increase in demand for products in India is generating a greater demand for international franchises.
Young entrepreneurs are discovering that franchising can help them jump start on the road to business success. Despite the lack of business experience, with the right attitude, little help from family and friends, and enough determination, they can plug their passion into a franchise model.
Lack of funds and business credibility are the two major problems young entrepreneurs face when starting their business. They need to find the initial liquid capital to get started, which can be done with the help of friends and family. But if young entrepreneurs are setting up a business with a franchise that already is successful in the market, the bank is more likely to lend money, funding their start-up.
Another challenge comes with the assumption as the franchisee is being handled by young people. People start to assume that the young people lack knowledge about the industry, with having little or no experience. Instead of losing hope, they should take it as a challenge to prove their capabilities and what they can achieve with their innovative mind.
Not taking the young entrepreneurs seriously is another challenge which can be seen in the industry. Another challenge arises at the time of hiring someone who is having children of their own age. The key to overcome such challenges is by showing the knowledge and enthusiasm of young guns, who are stepping into the industry at an early age.
Finding external suppliers act as another challenge in the process. Many suppliers refuse to invest or do business with young people, thinking they might experience loss. The reason could be lack in faith and experience. But once a supplier is ready to work, young entrepreneurs can change their prospect, where suppliers could be seen searching for new and innovative minds for shaping a business in future.
Promoting through the social websites is one common and successful process of grabbing people’s attention. Via social media, information about franchising could also be offered to schools, colleges, and universities, creating awareness among young guns. This is how more young entrepreneurs can be seen entering the market, with a focused goal of making their business successful.