When someone says “franchise”, people generally visualise middle-aged men/women as the owner, not someone in their 20s. However, this perception has been gradually changing. A younger generation of millennials is actively venturing into the business world via franchising.
Millennials, also known as Generation Y (or Gen Y), are people who were born between the years of 1981 to 1996. This can’t be emphasised enough that millennials are the driving force of any industry today. According to reports, millennials account for 27% of the world's 7.4 billion population and, in India, millennials are 34% (at 440 million) of the country's total population.
However, millennials haven’t always had the best press. There has been an inundation of articles & stories highlighting their shortcomings as well. They have been the victim of media-fed stereotype as the generation who are privileged, lazy, and narcissistic and expect praise without accomplishment. But the statistics from the business world tells a different story, franchisors who have worked with millennials find them energetic, eager to learn, adaptable, creative & smart.
Millennials: Growing the Culture of Entrepreneurship
The twenty-somethings have grown up in a culture of entrepreneurship. They have witnessed their contemporaries turning ideas into successful businesses. For instance, Indian hotel unicorn, OYO, was founded by 21-year-old- RiteshAggarwal.
According to industry reports, the earlier generation was reported to have launched their first business venture aged 35 years old on average, with Millennials starting their first business around age 27. This validates the fact that the millennials are more eager to start their own venture business at a very young age—unlike than the previous generation—and are willing to take more risks.
In addition, 72 per cent of the millennials would like to be their own boss and 74 per cent want flexible work schedules and 88 per cent want work-life integration. But not everyone who wants to run their own business has access to all the components essential for success such as experience, guidance, familiarity with business systems etc. Franchising helps to bridge that gap and the idea resonates well with the millennials.
Thus, franchisors ignoring the millennials as their potential franchise are putting themselves into grave peril, as millennials are the future of franchising. Here are some reasons why millennials can make perfect franchises:
Fresh & Creative Ideas
One of the many benefits of working with the millennials is that they offer a fresh approach towards any subject, which cannot be found anywhere else. It is important for any franchisor to keep up with the recent trends and constantly innovate.
Millennials are open to new ideas and less set in their ways than some of the previous generations. They can be a real asset to franchisors as they keep your company innovative and open to new possibilities.
Connect with the Young Consumers
Many franchise businesses are targeting younger consumers and being closer to the target audiences’ age group is an added advantage to the millennials. This makes it easier to connect to the target consumer and increase profitability.
They are extremely social Media Savvy
Millennials have grown up immersed in technology &social media. In fact, they are the major reasons behind the success of these platforms; one cannot survive without the other—be it Facebook, Twitter, YouTube, Instagram... they are extremely savvy with all social media platforms and know the ins and outs of these sites.
Social media is a major marketing tool for franchise brands. Although the experience of the older generation is invaluable, millennials know how to use social media for business and how to interact with customers using it.
Eager to Learn
Despite the bad rep & stereotype, millennials are eager to learn more. Having grown up in the information age, they understand that they don't know it all and are always looking for opportunities to expand their knowledge base. They are open to mentorship & guidance. Thus, they seek franchisees with extensive franchise support.
