The Microfranchising Platform

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Contents of the Microfranchising Platform

(Click the buttons to proceed to each section)

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 Introduction

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Microfranchising is a business model that applies elements and concepts of traditional franchising to small businesses in the developing world. It refers to the systemization and replication of microenterprises. Microfranchising is broadly defined as small businesses that can easily be replicated by following proven marketing and operational concepts.

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On this page, we will provide you with all the information you will need to join the microfranchising network and help you establish your own microenterprise. Below you will find guides, interviews, research papers and examples of successful microfranchises. Furthermore, we offer you assistance in developing your microenterprise through the Circular Development Challenge.

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The Circular Development Challenge is organized by OFoundation to investigate the possibilities for microfranchising as a scaling model for NGOs. We seek successful SMEs that are ready for an investment, and which are willing to use the microfranchise model to scale up. The SMEs with the biggest potential will have the chance to receive an investment by a financial risk bearing partner.

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Development aid is a difficult thing to implement. Income is hard to earn, impact is hard to generate, and trust can be hard to find. Over the past decades, the world has seen numerous changes and reorganizations of the development-aid sector. Each change that came forward has been to improve the impact within the sector. Some of these innovations have been welcomed and are now widely used, like microcredit. Other changes are looked at with more scepticism, like the frequent changes of government budgets.

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To address the lack of impact, income and trust some NGOs face, OFoundation is promoting microfranchising. This seems to be an excellent way for impact investments to achieve two goals. First of all, a high level of sustainable growth is reached. Second, charities that implement this model have a means to generate income for themselves by participating in business activities, making their unique line of work sustainable in the long run. We want to show that with the right business models, projects can achieve more growth. More information about the concept can be found below.

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The Circular Development Challenge Pitch Event

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To get a better insight of the practicalities of microfranchising, we have consulted a number of organizations and experts in the field. Below, you will find all the interviews that we have conducted.

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     Tracey Chambers

    The Clothing Bank

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     Jelle Hanskamp

   Microfranchise010

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   Nicolas Chevrollier

Bottom of the Pyramid

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Development aid is complex and does not always run smoothly. To improve our work, we can learn from theory and from practice. Firstly, OFoundation aims to understand how we can optimize our investment by looking at how business operated and succeeded in the past. Secondly, OFoundation recognizes the growing amount of literature that discusses microfranchising. On this page, we analyze the global importance of microfranchising as an addition to development aid from a theoretical perspective.

[/vc_column_text][ultimate_spacer height=”50″][vc_column_text]Recommended books[/vc_column_text][ultimate_spacer height=”20″][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column width=”1/4″][vc_single_image image=”16017″ img_size=”” alignment=”center” onclick=”custom_link” img_link_target=”_blank” qode_css_animation=”” link=”http://www.amazon.com/Alleviating-Poverty-through-Business-Strategy/dp/0230104045/ref=pd_rhf_dp_p_img_2?ie=UTF8&refRID=1BR9583PFYVQMQ6CKEAY”][/vc_column][vc_column width=”1/4″][vc_column_text]

There is a growing realization that business development is the most effective weapon in fighting world poverty. How the for-profit model can be harnessed to provide the poor with a share in the world’s prosperity is discussed through actual cases, and nested in innovative theories of business, social sciences, and philosophy.

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George examines and disputes two popular ideas: first, that there is not enough food, and second, that the world is over-populated. She argues that the planet could easily feed its present population and many more.

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It is increasingly clear that 50 years of international development have done little to reduce poverty in Africa. Indeed, more and more academics and practitioners are highlighting the detrimental effect of traditional development – as carried out by international agencies and NGOs – which often leads to dependency, inefficiency, waste and poor governance.

[/vc_column_text][/vc_column][vc_column width=”1/4″][vc_single_image image=”16016″ img_size=”” alignment=”center” onclick=”custom_link” img_link_target=”_blank” qode_css_animation=”” link=”http://www.amazon.com/Microfinance-Beyond-Introducing-Microfranchising-Businesses/dp/0557094445″][/vc_column][vc_column width=”1/4″][vc_column_text]

An introduction to microfinance, microfranchising and social businesses.

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This book is a must read for business scholars and economists, practitioners and lenders, members of NGOs dedicated to poverty alleviation and anyone else who is interested in learning about an innovative, business focused tool to alleviate poverty.

[/vc_column_text][/vc_column][vc_column width=”1/4″][/vc_column][vc_column width=”1/4″][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column][ultimate_spacer height=”50″][vc_column_text]Recommended articles[/vc_column_text][ultimate_spacer height=”20″][ultimate_icon_list icon_size=”12″ icon_margin=”12″][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Aylward, A. (2000). Trends in Venture Capital Finance in Developing Countries. The World Bank.

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Ayyagari, M., Beck, T., Demirgüç-Kunt, A. (2005). Small and Medium Enterprises Across the Globe. The World Bank

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Black, M. (2002). The history of an idea. In The no-nonsense guide to international development (pp. 10-30). London: Verso.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Brack, D., & Branczik, T. (2004). Trade and environment in the WTO: After cancun. Roya Institute of International Afairs Briefing Paper, 9.

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Brautigum, D., Expert Group on Development Issues (2000). Aid Dependency and Governance. Stockholm: Almqvist & Wiksell International

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Daly, H. E. (2005). Economics in a full world. Scientific American, 293(3), 100-107

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Dione, J. (2008). Sustainable Development Report on Africa: Managing Land-Based Resources for Sustainable Development. Economic Commission for Africa

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Feigenberg, B., Field, E. M., Pande, R. (2011). Building Social Capital Through MicroFinance. NBER Working Paper No. 16018. Retrieved 10 March 2011.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Galtung, J. (1971). Structural theory of imperialism. Journal of Peace Research, 8(2), 81-11

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Gonzales, A. (2010). Is Microfinance Growing Too Fast? Microfinance Information Exchange.

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Gordon, R. E., & Sylvester, J. H. (2004). Part II. Constructing Development in Practice (pp. 22-  48). In Deconstructing Development. Wisconsin International Law Journal, 22(1), 1-98

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Grameen Bank. (2012). What is microcredit?

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Guardian. (2014). www.theguardian.com/global-development/povertymatters/2014/feb/25/social-enterprise-succeed-traditional-development-failed

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Lehr, D. (2008). Micro-franchising at the Base of the Pyramid. Acumen Fund.

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Lélé, S. (1991). Sustainable development, a critical review. World Development, 19(6), 607-621[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Monbiot, G. (2003). Something snaps: An international clearing union. In The age of consent: A manifesto for a new world order (pp. 139-180). London: Flamingo cool manifesto

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Moss, T., Pettersson, G., Van de Walle, N. (2006). An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa. Working    paper 74: Center for Global Development

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]OECD. (2004). Promoting Entrepreneurship and Innovative SMEs in a Global Economy. Organisation for Economic Co-operation and Development.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Patricof, A. J., Sunderland, J. E. (2005). Venture Capital for Development. Brookings Blum Roundtable.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Rahman, M. A. (1990). The case of the third world: People’s self-development. Community Development Journal, 25(4), 307-31[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Reddy, A. K. N. (1975). Alternative technology: A viewpoint from India. Social Studies of Science, 5(3), pp. 331-342 How northern technology is imposed on the south.

[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Santos F. (2012) A Positive Theory of Social Entrepreneurship, Journal of Business Ethics: Volume 111, Issue 3, Pages 335-351.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Scheela, W., Chua, R. (2002). Venture Capital in a Developing Country: The Case of the Philippines. Asia Institute of Management and Bemidji State University.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]UNDESA. (2015). Global Sustainable development report. 2015 edition, advance unedited version.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]United Nations Development Programme . (2015). Science, technology and innovation for sustainable development in the global partnership for development beyond 2015, Thematic Think Piece.[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Venot, J-P., & Clement, F. (2013). Justice in development? An analysis of water interventions in the rural south. Natural Resources Forum, 37(2013), 19-30[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-file-o” icon_color=”#47785b”]Weis, T. (2005). A precarious balance: Neoliberalism, crisis management, and the social implosion in Jamaica. Capital & Class, 29(1), 115-147[/ultimate_icon_list_item][/ultimate_icon_list][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=”” el_id=”Examples”][vc_column][vc_separator type=”normal” down=”50″][bsf-info-box icon=”Defaults-info-circle” icon_size=”32″ icon_color=”#47785b” title=”Examples of Existing Microfranchises” title_font_style=”font-weight:bold;” title_font_size=”desktop:20px;” title_font_color=”#47785b”][/bsf-info-box][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column width=”1/3″][interactive_banner_2 banner_title=”Fan Milk: Dairy in West Africa” banner_image=”16388|http://www.ofoundation.nl/wp-content/uploads/2016/05/fan-milk-picture.jpg” banner_link=”url:http%3A%2F%2Fofoundation.nl%2Ffan-milk-example%2F||” banner_style=”style11″ banner_min_height_op=”custom” banner_color_title=”#ffffff” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][vc_column width=”1/3″][interactive_banner_2 banner_title=”RUMA: Telecom in Indonesia” banner_image=”16491|http://www.ofoundation.nl/wp-content/uploads/2016/05/Screenshot-2016-06-17-at-16.15.59-1.png” banner_link=”url:http%3A%2F%2Fwww.ofoundation.nl%2Fruma-example%2F||” banner_style=”style11″ banner_min_height_op=”custom” banner_color_title=”#ffffff” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][vc_column width=”1/3″][interactive_banner_2 banner_title=”Mercado Fresco: Agriculture in Nicaragua” banner_image=”16405|http://www.ofoundation.nl/wp-content/uploads/2016/05/Screenshot-2016-06-10-at-15.59.53.png” banner_link=”url:http%3A%2F%2Fofoundation.nl%2Fmercado-fresco-example%2F||” banner_style=”style11″ banner_min_height_op=”custom” banner_color_title=”#ffffff” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=”” el_id=”projects”][vc_column][vc_separator type=”normal” down=”50″][bsf-info-box icon=”Defaults-info-circle” icon_size=”32″ icon_color=”#47785b” title=”Experience Previous OFoundation Projects” title_font_style=”font-weight:bold;” title_font_size=”desktop:20px;” title_font_color=”#47785b”][/bsf-info-box][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column width=”1/3″][interactive_banner_2 banner_title=”Jewelry Makers in Morroco” banner_image=”16178|http://www.ofoundation.nl/wp-content/uploads/2016/05/sieraden_maker_ofoundation.png” banner_link=”url:http%3A%2F%2Fofoundation.nl%2Fjewelry-makers-in-morocco%2F||” banner_style=”style11″ banner_min_height_op=”custom” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][vc_column width=”1/3″][interactive_banner_2 banner_title=”Waste Collectors in Mumbai” banner_image=”16200|http://www.ofoundation.nl/wp-content/uploads/2016/06/waste3.jpg” banner_link=”url:http%3A%2F%2Fofoundation.nl%2Fwaste-collectors-in-mumbai%2F||” banner_style=”style11″ banner_min_height_op=”custom” banner_color_title=”#0c0c0c” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][vc_column width=”1/3″][interactive_banner_2 banner_title=”Karité producers in Burkina Faso” banner_image=”16333|http://www.ofoundation.nl/wp-content/uploads/2016/05/shea2.jpg” banner_link=”url:http%3A%2F%2Fofoundation.nl%2Fkarite-producers-in-burkina-faso%2F||” banner_style=”style11″ banner_min_height_op=”custom” image_opacity=”1″ image_opacity_on_hover=”1″ banner_min=”220″][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=”” el_id=”Organizations”][vc_column][vc_separator type=”transparent” thickness=”20″][ultimate_ctation ctaction_background=”#47785b” ctaction_background_hover=”#ada887″ enable_icon=”enable_icon_value” effect=”bottom-push” icon=”Defaults-cog gear” icon_size=”50″ ctaction_padding_top=”40″ ctaction_padding_bottom=”40″ ctaction_link=”url:http%3A%2F%2Fwww.ofoundation.nl%2Fchallenges-2%2F||”]Want to learn more about our Challenges?[/ultimate_ctation][ultimate_spacer height=”50″][bsf-info-box icon=”Defaults-group users” icon_size=”32″ icon_color=”#47785b” title=”Helpful Organizations & Institutions” title_font_style=”font-weight:bold;” title_font_size=”desktop:20px;” title_font_color=”#47785b”][/bsf-info-box][vc_column_text]

During the establishment of the microfranchising platform, OFoundation has been in contact with numerous Netherlands-based organisations and institutions. Below is a list of partners whose services can be helpful when establishing or improving your microfranchise.

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The Dutch government wants to promote sustainable economic growth in developing countries. The Netherlands also want to work on stability and security in the world and the guarantee of human rights. The Dutch development cooperation policy focuses on four key themes: safety and rule of law, water, food, and sexual and reproductive health and rights (SRHR).

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BiD Network aims to increase economic development in emerging markets through the mobilization of capital and knowledge to small and medium-sized enterprises (SMEs). By offering customized matchmaking and support services to both financiers and entrepreneurs we aim to grow the number of businesses that can start, grow and expand.

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Partin is the branch organization for private initiatives. They aim to give them a voice at discussions about development cooperation and serve in their interest. The advantage it has over individual small NGO’s is that it can achieve more through association. Examples include joined requests for subsidies, improving the quality of the work and learning by cooperating, and being able to collectively contact other parties in the sector.

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As experts in their field, Licentie en Franchise offers franchising services including arrangement of judicial affairs, brand and intellectual property registration, and expansion and export of successful products. Additionally, they have provided valuable advise in the conceptualization of the microfranchising platform.

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The BoP Innovation Center offers business development services for developing markets. They provide a range of services including developing market entry strategies, designing business cases, brokering smart partnerships, organizing pilots, and linking ventures to impact investors in their network.

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