Franchising and entrepreneurship : exploring the perceptions and experiences of first-time business owners.
Entrepreneurship is vital to any economy, more so in those looking to develop their small business sectors. Growth of the South African small business sector is being hampered by a lack of entrepreneurs that have the necessary capacity to initiate significant levels of new venture creation. In this study the franchising concept is looked at as means of developing and nurturing such entrepreneurial capacity in those with no entrepreneurial experience. A qualitative investigation is conducted amongst a sample of first-time franchisees with no previous business ownership experience, with the intention of determining the extent of their development as entrepreneurs through the course of their franchise ownership. The results suggest that franchise ownership does result in the enhancement of entrepreneurial capacity in those with no prior experience. This enhanced capacity is also seen to be transferable to environments outside of the franchise system.