Sunday, May 1, 2011

Study Small Medium Enterprise and Franchising


Having a big company would boast, but by no means a small business must be inferior. At the time of monetary crisis, many advantages are obtained by Small and Medium Enterprises (SMEs), while the big fish most of their business entrepreneurs halted because of the high indebted. SME sector to grow like mushrooms, while the number of layoffs of bank employees who dilkuidasi by printing new job, with hold 99.45% of the total workforce, or 73.24 million workforce. Therefore, SMEs into a buffer in times of crisis the nation's economy and social problems can be imagined that would arise without the SMEs.

SME sector is also able to penetrate the world market and provide a major contribution to national exports. According to the Daily Task Coordinator Agency for Export Development (NAFED), Deperindang since the 1997 crisis numbers continue to increase SME exports, especially belle CPO export products, furniture, garment, handicraft and food processing until the period of 2005 has been recorded Rp109, 13 trillion.

Before the crisis happened, who is not familiar with the domination of foreign franchises from KFC, Pizza Hut, Swensen to McDonald. The growth of foreign franchise was not matched by local franchisees. Apparently in times of crisis impact on the franchise with rising foreign exchange rate of U.S. dollar makes foreign franchise holders in Indonesia lying because franchisees are unable to meet royalty fees and franchise fees.

As a result of foreign franchise growth in 1998-2000 minus 86%, while the local franchise grew 40.2%. Since 1998 s.d. 2004 foreign franchise growth only 7% pa, while the local franchise of 14.7% pa One cause of the slowdown in foreign franchise is a costly investment that must be borne by the franchisee and franchisor are still many foreigners who want to enjoy yourself the sweetness of this business, so do not want to do sub-franchising.

On the other hand, one trigger increased local franchise requirements for becoming a franchisee is a lot easier and cheaper, even franchise Fresh Corn Crispy Red Rp10 million just need capital to start a business. That's why local franchise record remarkable progress, for example in 2004 Indomaret reach 926 outlets, Alfamart 730 outlets, 122 outlets and ice londre teller 77 to 160 outlets.

By 2005 local franchise data according to Indonesian Franchise Association (AFI) reached 232 with a volume of assets Rp1, 5 trillion per year. However, the sweetness of the local franchise growth is not accompanied by steady growth, often encountered local franchise business that recently opened just for the rest of corn, because the problem of professionalism and practice money games just as happens in agri business Qurnia Alam Subur Raya (QSAR), which offers investment opportunities by buying the lot and the lure of profit sharing and a fantastic fixed rate until the franchisor is unable to pay bills investor interest due 6800 and reach half a trillion rupiah.
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