Keywords

subsistence markets, entrepreneurship, microcredit and microfranchising

Abstract

Scholars indicate significant interest in business models that support entrepreneurial behavior in developing markets [Wankel C., editor. Alleviating Poverty through Business Strategy. New York: Palgrave Macmillan 2008]—particularly as they relate to job creation. This research introduces microfranchising as a business model adaptation that helps low-income individuals overcome non credit-related barriers to entry in obtaining employment. This study reveals a clear challenge for researchers—to better understand microfranchising and the extent to which the practice creates employment and enables individual business success. Largely unanswered questions concern the profiles of typical microfranchisees as well as the impacts of microfranchising on low-income individuals in subsistence marketplaces. This preliminary research focuses on one type of microfranchise operating in Accra, Ghana. Using data from microfranchises enables the exploration of whether workers in subsistence markets benefit from the microfranchise model. In comparing a microfranchise business with comparably-sized non-franchised businesses, this analysis finds preliminary evidence that the microfranchise creates starter jobs. Baseline results highlight microfranchisee characteristics and indicate that this form of microfranchising positively impacts savings and profits.

Original Publication Citation

"Jones Christensen, L., Parsons, S., & Fairbourne, J. (2010). Building entrepreneurship in subsistence markets: Microfranchising as an employment incubator. Journal of Business Research, 63 (6) 595-601."

Document Type

Peer-Reviewed Article

Publication Date

2010

Publisher

Journal of Business and Research

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Associate Professor

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