Microfranchise Accelerator

Business-in-a-box solutions for unemployed women.

High levels of unemployment force low-income communities world-wide into self-employment. This results in a number of small-scale, copycat businesses that have no sustainability.

An alarming number of new small businesses (estimated at 65-80%) fail in South Africa. When it is factored in that only 1 in 10 people exhibit the aptitude to be an entrepreneur, the statistic becomes even more disturbing, emphasising that a solution is needed.

Micro-franchising is a developmental tool that applies the elements and concepts of traditional franchising to small businesses in the developing world. It refers to the systemisation and replication of micro-enterprises, facilitated through leveraging off the supply-chains procurement channels, access to market already forged by successful for-profit companies.

The replication of a microfranchise depends heavily on the strength of the strategic partners to the model. These mainly include:

  • An ongoing equipment provider - able to provide efficient maintenance.
  • Product providers - able to provide quality product at wholesale pricing with a strong logistics focus.
  • Technical training - accredited training in the respective industry that can be compressed to be effective but affordable.
  • A practical platform - a private sector operator in the industry able to provide an ongoing volunteering platform for new recruits to experience working in a professional environment.

The MFA focuses on building relationships with like-minded private sector stakeholders who wish to be a part of a sustainable unemployment solution by providing business-in-a-box solutions to South Africa’s emerging micro entrepreneurs.

Our current partnerships include:

  • Sorbet - the larget beauty salon franchise in South Africa to develop Amazi our beauty microfranchise that will provide access to quality, affordable beauty care in low-income communities.
  • Grow - a company that specializes in learning tools for Early Childhood Development and Education to establish Early Childhood Development Centers in low-income communities via a franchising format.

We are continually looking for interesting opportunities to develop further franchising formats. For further information please contact Divya Vasant divya@themfa.org.za +27 21 531 2134.

The Clothing Bank