INTRODUING A FIRST IN FRANCHISING: THE TOWNSHIPS PROJECT’S MICRO FRANCHISING LAUNCH, - TRADE SHOW & WORKSHOPS

The Townships Project was created in late 1998 as the brainchild of Martha Deacon, a Canadian national, in response to then President Nelson Mandela’s call to action to do something about the poverty in his country.
Since its inception The Townships Project has been tireless in its fight against poverty, working to extend small loans to start or expand small businesses, while also exploring how to make these loans more effective. In this light The Townships Project is exploring evidence that microloans are more effective when combined with Asset-Based Community Development (ABCD), Corporate Social Investment, Enterprise Development and Micro Franchising. During 2009 steps were taken to develop informal partnerships in these areas of interest and as South Africa searches for ways to rapidly scale business ownership amongst the 40% of its population subsisting on $2 a day, these partnerships have grown in strength.

It has long been known that people at the base of the pyramid have the same needs and aspirations as those higher up. Deacon decided to formulate a strategy that, with the help of key industry role players, could tap into the bottom rung of the pyramid to develop micro-franchises that would be accepted by communities and stimulate job creation. With this in mind she approached Dr Mike Herrington, the Director for the Centre of Innovation and Entrepreneurship at The University of Cape Town’s Graduate School of Business, to explore the possibility of launching a micro-franchising initiative.

The result of their collaboration is the Micro Franchising Launch - Trade Show and Workshops. Based on a 4 wheel drive approach,  the four important drivers are asset-based community driven development, finance, Corporate Social Investment and Enterprise Development and Micro Franchising .  Mobile Technology is also integrated in this process.

Asset Based Community Driven Development

Asset-based community driven development encourages communities to assess their own assets. In the process of evaluating their social connections, knowledge, skills, natural, institutional and business rights and entitlements from the state, they start to understand their strengths. As part of the assessment they tally all income flowing into the community, be it from wages, diaspora or government transfers or other sources, and then trace how it is spent. For many communities the asset and income assessment exercises provide a “lightbulb” experience, prompting exclamations such as: “Wow! We didn’t realize how much we had and how much we earned, and we certainly didn’t realize how much we were spending OUTSIDE our community.”
When communities truly understand what they have, they can plan how to use it to get what they need. The assessment then provides the basis for creating a plan to keep the income circulating in their community, ultimately creating more wealth in their own community. This plan may involve starting or supporting small businesses relating to poultry and egg production, goat’s milk, dressmaking, bicycle repair, health services and other areas fundamental to the community’s welfare.
Micro Franchising
Micro Franchising recognizes that franchising is, quite simply, the most successful business model ever created. Franchising takes a successful business and replicates it using consistent, well-defined processes and procedures, creating a brand while procuring inputs, recruiting and training franchisees, and continuously improving the business model.
Micro Franchising offers this model to the poor, bringing affordable business ownership and training, reliable systems and supply links as well as family employment to many of the businesses communities recognize they need. 
Through the involvement of reputable national and international franchise experts, lending their vast knowledge and influence to the Micro Franchising Launch project, The Townships Project is set to break new ground in the franchising arena.
Finance

Getting the ball rolling invariably requires the involvement of micro financiers who have well established relations with communities across the country. Micro financiers such as Women’s Development Businesses Group (WDB) and the National Youth Development Agency (NYDA) have long since known that stimulating micro Enterprise Development within communities, stimulates growth opportunities. The Townships Project is grateful for the support of such organizations as Thetla Finance, Women’s Development Business Microfinance (WDB), Phakamani and Tutuwa Community Investment Fund and the Standard Bank Group.

Corporate Social Investment and Enterprise Development

The corporate sector, through Corporate Social Investment or Enterprise Development funds, enables the micro enterprise owner/operator to receive the necessary support required to make a success of their business. The support from Standard Bank, Legalwise, the Rand Water Foundation, Scorpion Insurance, the Department of Social Development and the Department of Trade and Industry (DTI), who all believe in this strategic approach to replicating successful micro-franchises, has been invaluable.

The first Micro Franchising Launch -Trade Show and Workshops, sponsored by Standard Bank, Legalwise, Rand Water, Scorpion Insurance, The Townships Project Canada and the Comart Foundation, was held in Khayelitsha, just outside Cape Town, during August and September 2011. The launch was attended by several Corporate Social Investment and Enterprise Development managers, franchise experts and key role players from Government. Delegates were party to several plenary sessions where they were able to gain valuable information and knowledge from the experts. Legalwise assisted in creating a shortlist of 15 businesses from amongst the launch participants, from which five were selected to be franchised. Allowance has also been made for existing businesses who wish to downscale their current operations, so they may be applied to townships and other rural communities in affordable micro packages.

We look forward to bringing you news about The Townships Project’s progress and successes with each issue of SA Franchise Warehouse.

For more information about The Townships Project you are invited to contact Jayshree Padayatchey at padaytcheyj@telkomsa.net