Gov't urged to enact franchising laws to grow SMEs
The Executive Director for Centre for Economic and Business Research, Gordon Newlove Asamoah, has urged the government to intensify advocacy on the need for small and medium enterprises (SMEs) and also enact laws to back and regulate their operations to help them grow.
Franchising, he said, is very key to national development and job creation in the modern day economy, while calling on government to prioritise it to boost the nation's economy.
Mr Asamoah, in an interaction with Adehye 99.1FM's Elisha Adarkwah on the sidelines of a workshop organised by the Institute of Financial and Economic Journalist (IFEJ), in collaboration with Voltic Ghana Limited in Kumasi, said, franchising has contributed immensely to the development of some advanced countries "like USA and even in South Africa in Africa here, you could see that a lot of franchises are contributing to national development in terms of GDP contributions".
He said: "If Ghana has to move forward, we need franchising law and advocate for a lot of companies to go franchising so that new businesses can be brought up; more jobs can be created and GDP can be increased."
He, therefore, called the need for small and medium enterprises that do not have the capacity to grow up to mentor with already established businesses through franchise to help them contribute to the nation's development.
"If you do not have anybody to mentor, you will end up making a lot of mistakes from the beginning, and after two-three years, the business may collapse, so, franchising is a nice way of mentoring new businesses and helping them to grow, so that they can contribute to job creation and national development. If you have franchises, what it means is that, you can get a mentor who can mentor you to bring your business up and guide you through the processes from start up, so that you can bring up a successful business," he added.
Franchising is the practice of the right to use a firm's business model and brand for a prescribed period of time.