1 From Harm to Home | Rescue.org IRC Microfranchising Paolo Cernuschi, Zimbabwe Programs Coordinator SMEAZ Workshop, 29 January 2013

2 From Harm to Home | Rescue.org New Market Entrant Employment Mismatch High unemployment minimal job opportunities Past initiatives provide opportunities not matched to market needs We would need to create over 100 million jobs within the next 20 years to have enough jobs for the growing number of young people (UNESA, 2010).

3 From Harm to Home | Rescue.org What is a Microfranchise Modeled after traditional franchises in the US and Europe Small businesses replicated from bigger existing business: –proven business concepts –established brand –defined operations –defined cost structure Microfranchises have minimal startup costs and are easy to maintain

4 From Harm to Home | Rescue.org Definition of a Microfranchise Systematize Replicate

5 From Harm to Home | Rescue.org What is the difference between Microfranchise & Microfinance ? VS.

6 From Harm to Home | Rescue.org Why Microfranchise? The franchisor has done the work The franchisee needs to simply follow existing guidelines Pairs a successful entrepreneur with those who lack the skills and capital to develop and start their own business –Benefiting the individual with the new business –Benefiting the existing business by expanding their customer reach and market share

7 From Harm to Home | Rescue.org Example of Microfranchise

8 From Harm to Home | Rescue.org Potential Role of NGO in Microfranchise General Create a microfranchise from scratch Invest in existing micro-enterprise and support its replication as a franchise IRC Facilitators of franchise development

9 From Harm to Home | Rescue.org IRCs’ Preparations for Microfranchise Development New Market Entrant Assessment Specific needs Interests Potential local partners Franchise Assessment Scalability Profitability Management Team

10 From Harm to Home | Rescue.org Sierra Leone- Microfranchising Year 1 Pilot project took place youth matched with 7 franchise businesses Youth receive training, mentoring and startup Results (After 7 months): 100% still engaged, 83% making profit Year 2 More detailed market assessment conducted, 1 franchise business chosen 154 youth receive package of support and startup Splash microfranchises

11 From Harm to Home | Rescue.org Kenya – Girls Empowered by Microfranchise Year 1 Market & Girls assessment conducted 4 Business identified Local consulting firm and youth organizations identified Curricula developed 250 girls trained and microfranchise started Year 2 Continue to scale up Monitor progress By end of Year 2 reach 2400 Lead Girls & Buddies

12 From Harm to Home | Rescue.org Thank You!!!!