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The Lagos State Authorities has launched the Lagos MSMES Franchise Framework Initiative as a part of its efforts to advertise franchising in Nigeria aimed toward reaching the United Nations Sustainable Improvement Targets (SDGs).
The initiative was launched Tuesday by the Lagos State Workplace of Sustainable Improvement Targets (SDGs) and Funding.
In line with the Particular Adviser to the Lagos State Governor Babajide Sanwo-Olu on SDGs and Funding, Solape Hammond, the initiative is in collaboration with the Franchisors and Distributors Discussion board (FRANDIS).
She stated the programme will kick off with a workshop for 300 Lagos MSMEs on franchise consciousness, course of and construction.
She additional famous that after the workshop, 20 MSMEs with the very best potential will likely be chosen to broaden right into a franchise for Franchise Help and Roll Out, which she famous will contain working immediately with the SDGs workplace and FRANDIS to get funding, create jobs and improve capability via their companies.
About Franchising
Mrs Hammond stated franchising is a superb path to progress that may open up new alternatives and markets for a lot of companies “notably in a society like Nigeria the place firm reputations are extremely valued, due to this fact, working below a trusted model title places one forward of the competitors in some ways”.
She added that the state is now encouraging buyers to arrange franchises, saying Lahos is “among the many prime ten largest rising economies on the earth, contributing over 30 per cent Gross Home Product (GDP) to the nation and creating greater than 2 million direct jobs yearly.”
Goals of the initiative
In his remarks, the founding father of FRANDIS Discussion board, Tayo Adedugbe, famous that the objective of the initiative is to “assist the event of franchising as a viable mannequin for serving to MSMEs scale their companies, entice funding, broaden throughout the state and internationally and create new jobs whereas stimulating and diversifying the financial system”.
Mr Adedugbe famous that one of many main targets of the initiative is the fulfilment of the UN SDGs 1 (Finish Poverty); 8 (Respectable Work and Financial Development); 9 (Fostering Industrial Diversification, Small Companies, Entrepreneurship, Innovation and Infrastructure Investments); 10 (Decreased Financial Inequalities).
He stated that the initiative additionally goals on the capability constructing of MSMEs on franchising processes, facilitation of enterprise finance for the MSMEs franchisees via business banks and personal capital, to create consciousness of the advantages of MSME franchising, enterprise Diversification and Financial Stimulation, amongst others.
He added that the beneficiaries embrace MSMEs with an growth potential into multi-units. MSMEs in all sectors, Traders/Entrepreneurs, Native Economies/Communities. Industrial banks and different financing establishments, Authorities, Highschool graduates and college graduates, and different MSMEs and people inside the worth chains.
Franchising in Nigeria
In her goodwill message, Mariam Katagum, the Minister of Business, Commerce and Funding, who was represented by Ajayi-Ade Olumuyiwa, the Director of Industrial Improvement on the ministry, stated Nigeria as probably the most populous nation in Africa “has the potential to develop into the gateway for franchise improvement in Africa”.
Whereas explaining the idea of franchising, she stated “it’s the license or permission to make use of the title and merchandise of an current enterprise, in addition to, its trademark”.
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“As soon as the Franchisor grants the franchise to a Franchisee, the Franchisee will benefit from the Franchisor’s model, can begin promoting the Franchisor’s merchandise and benefit from the Franchisor’s know-how, emblems and different assets, corresponding to logistical companies {and professional} advisors,” she stated.
She stated South Africa, for instance, generates 12.5 per cent of its GDP from franchising.
Challenges of franchising in Nigeria
The Minister highlighted the foremost challenges hampering the expansion of franchising as a sustainable enterprise mannequin for MSMEs in Nigeria, noting that they “vary from the dearth of current franchise-specific legislation and regulatory framework, getting access to funding, consciousness, capability constructing and the inefficient enabling setting”.
Nevertheless, she famous that “the Federal Authorities is dedicated to enhancing the enterprise setting within the nation, as franchising permits not solely growth however an empowerment device, which may profit start-up corporations and develop Nigeria’s Small and Medium Enterprises to result in progress and sustainable improvement within the financial system”.
She assured that the Industrial Improvement Division of the ministry will deepen the prevailing collaboration with the Nationwide Workplace for Know-how Acquisition and Promotion (NOTAP) “to chart a approach ahead with different related stakeholders in addressing some regulatory clauses and disclosure paperwork of the Franchise Invoice to be despatched for passage by the Nationwide Meeting”.
The President of the Nigeria Worldwide Franchise Affiliation (NIFA), Bankole Sodipo, in his keynote deal with recommends the necessity for Lagos to go a franchise legislation, saying it’ll assist to manage and scale up franchising within the state.
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