The franchise model should represent a business model of choice for women. The format has a lower risk profile, as it offers a level of perceived reassurance that the concept has been tested in the marketplace. It also minimises some of the historical disadvantages women face when entering self-employment.
We identified another factor that might limit women’s uptake of franchising opportunities. Many remained unaware of key benefits such as support from government and franchisors, which includes initial investment and working capital.
Yet a number of factors often constrain women’s choices in business. These include lack of business experience, lack of access to capital and formal and informal business networks, and the need to balance work and family commitments. In fact, women founded only about 25% of start-ups in Australia in 2017.
Our research explored the effects of different risk-taking levels among women on their likelihood of adopting a franchise business model. The chart below illustrates influences on the identified risk-taking groups – low, medium and high risk propensity.
- ^ our research (www.tandfonline.com)
- ^ Senior female bankers don't conform to stereotypes and are just as ready to take risks (theconversation.com)
- ^ more and more of them are women (www.afr.com)
- ^ women founded only about 25% of start-ups (www.startupmuster.com)
- ^ CC BY-SA (creativecommons.org)
- ^ What's going wrong with Australia's franchises? (theconversation.com)
- ^ It really pays for franchisees to do their due diligence – here's how (theconversation.com)
Authors: Park Thaichon, Lecturer and Cluster Leader, Relationship Marketing for Impact Research Cluster, Griffith University