MicroFranchising: Creating Wealth at the Bottom of the Pyramid

273 Pages·2007·1.14 MB·English

by  Jason S. Fairbourne

MicroFranchising

MicroFranchising
Creating Wealth at the Bottom of the Pyramid
Edited by
Jason S. Fairbourne, Stephen W. Gibson
and W. Gibb Dyer, Jr
Brigham Young University,USA
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© Jason S.Fairbourne,Stephen W.Gibson,W.Gibb Dyer,Jr 2007
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing,Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library ofCongress Cataloging in Publication Data
Microfranchising :creating wealth at the bottom of the pyramid / edited by
Jason S.Fairbourne,Stephen W.Gibson and W.Gibb Dyer.
p. cm.
Includes bibliographical references and index.
1.Franchises (Retail trade) 2.Small business.3.Poverty.4.Poverty–Prevention.
I.Fairbourne,Jason S.,1973- II.Gibson,Stephen W.(Stephen Wallace),1941-
III.Dyer,W.Gibb,1954-
HF5429.23.M53 2007
381(cid:1).13–dc22 2006028683
ISBN 978 1 84720 108 9 (cased)
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
Contents
List of figures vii
List of tables viii
List of boxes ix
List of contributors x
Foreword xv
Acknowledgments xvii
1 Why Microfranchising is needed now:introduction and book
overview 1
Jason S.Fairbourne
PART I MICROFRANCHISE THEORY
2 Microfranchising:the next step on the development ladder 17
Stephen W.Gibson
3 The informal economy and microfranchising 43
Michael Henriques and Matthias Herr
4 Current international development tools to combat poverty 78
Warner Woodworth
5 Opportunities for partnership:how microfinance and
microfranchising complement each other 99
John Hatch
6 Microfranchising and the base of the pyramid 111
Molly Hoyt and Eliot Jamison
PART II MICROFRANCHISING IN PRACTICE
7 Microfranchise business models 133
Kirk Magleby
8 Honey Care Africa 149
Farouk Jiwa
9 Franchising health care for Kenya:the HealthStore
Foundation model 164
Michelle Fertig and Herc Tzaras
v
vi Contents
10 Vodacom Community Services:rural telephone access for
South Africa 183
Lisa Jones Christensen,Jennifer (Reck) Van Kirk and
Brad Wood
11 Scojo Foundation 199
Jordan Kassalow,Graham Macmillan and Neil Blumenthal
12 Microfranchise funding 212
Naoko Felder-Kuzu
PART III CONCLUSION
13 The future of microfranchising:opportunities and challenges 235
W.Gibb Dyer,Jr
Index 241
Figures
1.1 Distribution of world GDP,1989 7
2.1 Ownership-transfer process using the BOOT Model 30
2.2 The spectrum of relief vs.economic development 33
3.1 Non-agricultural self-employment,1980/89 and 1990/2000 44
3.2 Improving linkages between formal and informal economy
enterprises 48
6.1 Comparison of GDP growth 113
6.2 The virtuous cycle of business in development 117
9.1 Relationship between HS performance levels and monthly
sales 174
12.1 Microfinance today 215
12.2 Flow of funds 216
vii
Tables
3.1 Self-employment as a percentage of non-agricultural
employment 45
3.2 Overview of possible core franchise functions or services 53
3.3 System integrators and their roles 55
A3.1 Selected top-down and bottom-up franchises 70
12.1 Investment vehicles 216
A12.1 List of 74 funds 226
viii
Boxes
3.1 Defining the informal economy 43
3.2 Making franchising work for micro and informal business
in China 50
6.1 Cemex:community financial home improvements in Mexico 120
6.2 EDF:building businesses around rural electrification 123
6.3 Mondi recycling 128
ix