The Perception Of The Micro And Small Business’ Entrepreneurs Toward The Franchise Business  

Oleh:

Soekesi, Agustine Eva Maria

Jenis: Article from Proceeding
Dalam koleksi: Proceeding IConEnt 2016 (International Conference on Entrepreneurship) : How Innovation could Improve the Performance and Productivity in Entrepreneurship?, page 24-31.
Topik: franchise; entrepreneur; perception; micro and small business; food product
Fulltext: Agustine Eva Maria, Soekesi.pdf (286.04KB)

Isi artikel

Based on the result of a research in 2014, which was done by 200 micro and small franchise business’ entrepreneurs on food, there are 18% of businesses do not provide any agreements. Whereas, 57% of businesses engage verbal agreements, and of 25% business provides written agreements. There are 3 main reasons, why the entrepreneurs are choosing franchise as their business, such as the definitely production process (20,41%), easy to be run (19,75%), and assurance of the product design and brand (11.55%). In a further study (2015), out of 28 franchises’ food product’s categories show that 20 categories (71%) oblige the franchisee to buy the main product material from the franchisor. Through the results of the research above, survey was conducted to the 200 micro and small business’ entrepreneurs in Semarang of non-franchise-business to identify their responses toward the franchise business. The result shows that 129 respondents are not interested to have a franchise-business. While, 48 respondents stated their interest toward the franchise business, and another 23 respondents stated their ignorance. The reasons, which are stated by the group of the entrepreneurs who do not interest on the franchise, are: they do not want to be bound into any agreements appointed by the franchisor (56% or 72 respondents), they do not have any funds to buy the franchise business (25% or 33 respondents), and they do not have independency creativity in running the business (19% or 24 respondents). Whereas 48 respondents, who are interested toward the franchise business, state their reasons that franchise-business is easy to be run for due to all of the components are already established and the franchisee only need to run it (60% or 29 respondents) and 40% (or 19 respondents) states that due to this kind of business is now on a trend. The reason, why they do not yet open this franchise-business, is caused by their lack of funds (69% or 33 respondents). The rest of the

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