Growth prospects for entrepreneurs
Being entrepreneur, the individual or group should concentrate on the profit making businesses. But all the entrepreneurs will not have skills during initial period. At that time, the entrepreneurs supposed to have link with the major groups by becoming franchisee. But becoming franchisee is easy and success is not much easy. Various conditions should be followed that are formulated with franchisee agreement. Besides the entrepreneur limited to do the particular business. Ultimately, franchisor will have stable growth and franchisee/entrepreneur limited growth since there is particular activity only.
Suppose if the example is taken about McDonald’s, the company will not offer to entrepreneurs who are having the status of partnerships. Only individuals are eligible to get the franchise. The growth of business is limited to only one person. Hence the entrepreneurs select other business by forming groups of like minded people. With regard to the financing term, the individual entrepreneurs should depend upon their own sources or with limited sources. But if the organization formed under various statuses like partnership, LLC etc, will be having advantages to get credit facilities from financial institutions. Similarly the termination of franchise agreement also favors to the Franchisor and not entrepreneur. Any failure always goes to the franchisee. Hence the growth is limited to the franchisee and whereas the franchisor will have stable growth.
Since the Franchise agreement will have condition with respect to term, the Franchisee/entrepreneur should try to enhance skills by attending entrepreneurs training programme, searching alternative works, reading entrepreneur journals etc. Because the entrepreneur should not depend only on particular business. As a franchisee, the entrepreneur need not bother about marketing strategies, market development, brand image etc, as these will be governed by the Franchisor. Hence the franchisee will have plenty of spare time and that should be addressed to enhance the opportunities in order to work with new areas.
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