Maurice Rousetty | Business
Encouraging Indigenous
Self-Employment in Franchising
Although originally touted as a business
mechanism to encourage self-employment for minorities, franchising has not
lived up to initial expectations. While minority ownership in franchising in
the USA has shown considerable growth over the last two decades, this has not
been the case for Indigenous Australians. Indigenous business ownership in
franchising remains low, even though a majority of franchisors are willing to
recruit Indigenous employees and franchisees. This chapter aims to open a
dialogue on the relative merits of utilizing a transitional self-employment
pathway for Indigenous Australians through franchising. We argue that such a
hybridized approach may ameliorate systemic disadvantages that many Indigenous
Australians face when considering entering small business. Data was gathered
from a series of interviews with Indigenous business owners, franchise
(third-party) advisors, Indigenous government agency representatives,
franchisors and franchising educators. Our results highlight the pressing need
to better address areas of disadvantage that have been raised in prior Indigenous
Entrepreneurship and small business studies. Overall, our GROWTH-pathway
approach and recommended courses of action, answer calls to encourage private
sector involvement in Indigenous employment, so as to repair economic and
social damage caused by the introduction of a Western enterprising culture.
A risk ecology for analyzing, mitigating and pricing
franchisee contracted risks
Maurice Rousetty manifests a bundle of risks created by the delegation of
functions as both franchisor and franchisee exploit their respective
comparative advantage. The galvanisation of this advantage is governed by the
franchise agreement and optimized by the effectiveness of the governance
structure. This paper considers the concept of risk and discusses its
implications in valuing franchisee-operated businesses. It examines how risks
arise, where they congregate and synthesizes the specific franchising issues
relating to risk-adjusted cashflows, risk analysis, risk mitigation, and risk
pricing. The authors propose that risks in franchising are multi-layered and
hierarchical. Consequently, this relationship is represented in a Franchise
Risk Ecology (FRE) comprising risks inherent in the market, the franchisor, the
system, the industry and within the franchisee-operated business.
#MauriceRoussety
Comments
Post a Comment