Franchising as a way of starting or operating a small business that is more likely to be successful than engaging in an independent small business. This was the predominant opinion during the last decades (Hoy, 1994). The common view towards franchising merits a closer look into situations franchising and non-franchising small businesses could face to finally answer the title-question of this essay "To what extend do you (do I) agree with the view that Franchising is the salvation of people starting and operating a small business?".
To provide a sound answer the initial question requires some clarification. The basic notions of 'franchising' and 'small business' are defined and described in the first chapter. The second chapter, however, focuses on the person who starts or runs the small business, the entrepreneur or small business owner. The understanding of the entrepreneur's personality shall be enhanced by asking several questions. What kinds of decisions do self-employed people have to make, what are the threats they are confronted with and what determinates their failure and success? What might be the reasons for entrepreneurial behaviour and how might small business people feel running or starting the business? Moreover, what could the term 'salvation' mean to these people, and how could 'salvation' be interpreted?
The third part of this essay combines the insights of the previous chapters by displaying the framing conditions that could induce the future small business person to start a franchise as first-time self-employment or the existing entrepreneur to give up an existing independent business in order to run a franchise. Whether franchising finally meets 'salvation', what kind of advantages and disadvantages franchising might offer and what kind of personal attributes franchisees and franchisors need to embody shall be presented in this last chapter.
My subjective evaluations will be clearly visible in the text, for instance by defining 'salvation' or assessing the personal feelings of the prospective or current self-employed person. Additionally the text concludes with my individual judgement about the 'extent' to which franchising is the salvation of people starting or operating in a small business.
Table of Contents
- 1 Introduction
- 2 Defining 'Franchising' and 'Small Business'
- 3 Small Business Failure, Entrepreneurship and the Notion of 'Salvation'
- 4 Independent Small Business versus Franchise Business
- 5 Conclusion
Objectives and Key Themes
This essay aims to explore the extent to which franchising can be considered a solution for individuals starting and operating small businesses. It investigates the advantages and disadvantages of franchising compared to independent small business ownership, considering factors such as business failure rates, entrepreneurial characteristics, and the interpretation of "salvation" in the context of small business success.
- Definition and comparison of franchising and independent small businesses
- Analysis of small business failure rates and entrepreneurial characteristics
- Evaluation of the advantages and disadvantages of franchising
- Exploration of the concept of "salvation" in the context of small business success
- Subjective assessment of the role of franchising in small business success
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the essay by posing the central question: To what extent is franchising the salvation of people starting and operating a small business? It introduces the essay's structure, outlining the definitions and concepts that will be explored in subsequent chapters. The chapter emphasizes the need to clarify the terms "franchising" and "small business" and to understand the entrepreneurial context, including the challenges, decisions, and perceptions of self-employed individuals. It highlights the essay's subjective approach, acknowledging the author's personal evaluations and interpretations.
2 Defining 'Franchising' and 'Small Business': This chapter provides crucial definitions of the core concepts: franchising and small business. It explores various perspectives on defining franchising, ranging from a "method of doing business" to a "marketing system" or a "contractual relationship." The chapter highlights the importance of the franchise agreement in delineating the rights and obligations of franchisors and franchisees. The chapter then addresses the characteristics of small businesses, emphasizing the owner-operator's involvement in daily operations. The connection between these definitions and the essay's central question is established, laying a strong foundation for the following analysis.
3 Small Business Failure, Entrepreneurship and the Notion of 'Salvation': This chapter delves into the factors contributing to small business success and failure, providing context for assessing the potential "salvation" offered by franchising. It examines the personality and decision-making processes of entrepreneurs, exploring the threats they face and the determinants of their success or failure. This section likely analyzes the motivations behind entrepreneurial behavior, the emotional aspects of owning a business, and the meaning of "salvation" for small business owners. By understanding these factors, the chapter prepares the ground for a nuanced evaluation of franchising’s role in mitigating risks and fostering success.
4 Independent Small Business versus Franchise Business: This chapter is expected to compare and contrast independent small businesses with franchise businesses. It will likely analyze the advantages and disadvantages of each model, considering factors such as financial investment, operational support, brand recognition, market access, and risk management. The analysis will probably focus on how these factors influence the likelihood of success and the overall experience of the small business owner. This comparison is vital in answering the essay's central question.
Keywords
Franchising, small business, entrepreneurship, small business failure, salvation, independent business, franchise agreement, franchisee, franchisor, business model, risk management, success factors.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this essay?
The essay explores the extent to which franchising can be considered a solution (or "salvation") for individuals starting and operating small businesses. It compares the advantages and disadvantages of franchising versus independent small business ownership.
What are the key themes explored in the essay?
Key themes include defining franchising and small businesses, analyzing small business failure rates and entrepreneurial characteristics, evaluating the pros and cons of franchising, and exploring the concept of "salvation" in the context of small business success. The essay also involves a subjective assessment of franchising's role in small business success.
What aspects of franchising are defined and discussed?
The essay provides a thorough definition of franchising, exploring different perspectives on it—as a business method, marketing system, or contractual relationship. It highlights the importance of the franchise agreement and its implications for franchisors and franchisees.
How does the essay define "small business"?
The essay defines small businesses emphasizing the owner-operator's significant involvement in daily operations. This definition is crucial for comparing it to the franchising model.
What factors related to small business failure are considered?
The essay examines the factors contributing to both small business success and failure, including entrepreneurial personality traits, decision-making processes, the threats faced by entrepreneurs, and the determinants of their success or failure. It also analyzes the motivations and emotional aspects of business ownership.
How does the essay compare franchising and independent small businesses?
A dedicated chapter compares and contrasts independent small businesses with franchise businesses, analyzing the advantages and disadvantages of each model. This includes considerations of financial investment, operational support, brand recognition, market access, and risk management.
What is the meaning of "salvation" in the context of this essay?
The term "salvation" refers to the potential of franchising to significantly improve the chances of success and reduce the risks associated with starting and operating a small business. The essay explores this concept from both objective and subjective viewpoints.
What is the overall structure of the essay?
The essay follows a clear structure: Introduction, defining key terms (franchising and small business), analyzing small business failure and entrepreneurship, comparing independent and franchise businesses, and concluding with a summary of findings. Each chapter provides a summary of its content.
What keywords are associated with this essay?
Keywords include franchising, small business, entrepreneurship, small business failure, salvation, independent business, franchise agreement, franchisee, franchisor, business model, risk management, and success factors.
What is the overall approach of the essay?
The essay takes a comprehensive approach, combining objective analysis of data and concepts with the author's subjective assessment and interpretation of the role of franchising in small business success.
- Citar trabajo
- Christian Bacher (Autor), 2005, To what extent do you agree with the view that franchising is the salvation of people starting and operating a small business, Múnich, GRIN Verlag, https://www.grin.com/document/51704
