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Franchising as a strategy for job creation in the clothing sector: a case study of Walvis Bay
Author(s)
Shitemba, Kristina
Date Issued
2022
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
The franchise business model enjoys much support in developed and developing
countries. It is regarded as a key contributor to economic growth and is also seen as
an essential vehicle for job creation. In Namibia, where unemployment is high,
franchising can be a potential strategy that can be utilised to support the job creation
efforts of the Namibian government. However, while franchising as a business model
has seen areas of growth in several sectors in Namibia, empirical research into the
viability of the franchise business model within the clothing sector specifically or an
evaluation of its capacity to support job creation efforts has not been undertaken.
The study employed a mixed-methods research design to investigate the suitability
of franchising as a strategy to create jobs in the Walvis Bay area. The study
population included store managers, franchise staff members, professionals,
entrepreneurs, communication officers, and consumers. Non-probability sampling
strategies were used to select the 122 study participants. Data collection methods
included both a survey instrument and semi-structured interviews. Thematic analysis
was used, and the quantitative data was analysed using SPSS and Excel as analysis
tools. The key findings of the study established that franchise businesses appear to
contribute toward job creation in the Walvis Bay area. Additionally, franchise
businesses offer specific benefits and advantages compared to informal businesses
or those operated by sole owners. Franchise-run businesses are thus better able to
respond to poor trading conditions, such as those experienced during the COVID-
19 pandemic. Further results from the study indicate the rapid growth of the
franchising sector and suggest that these types of businesses are expanding more
rapidly than traditional businesses. The study has implications for business
stakeholders in the Walvis Bay area, including the Municipality, who are keen to
drive investment and job creation in the region. The study offers the following
recommendations: 1) the increased provisions of specific training and development
opportunities for all stakeholders involved in this sector, such as franchisees and
franchise staff. Such training should address multiple aspects of the franchising
business model. 2) Additional regulatory support to enable more accessible finance
opportunities, 3) increased provision of municipal land to encourage franchise
business development and 4) promotion of local franchise business.
countries. It is regarded as a key contributor to economic growth and is also seen as
an essential vehicle for job creation. In Namibia, where unemployment is high,
franchising can be a potential strategy that can be utilised to support the job creation
efforts of the Namibian government. However, while franchising as a business model
has seen areas of growth in several sectors in Namibia, empirical research into the
viability of the franchise business model within the clothing sector specifically or an
evaluation of its capacity to support job creation efforts has not been undertaken.
The study employed a mixed-methods research design to investigate the suitability
of franchising as a strategy to create jobs in the Walvis Bay area. The study
population included store managers, franchise staff members, professionals,
entrepreneurs, communication officers, and consumers. Non-probability sampling
strategies were used to select the 122 study participants. Data collection methods
included both a survey instrument and semi-structured interviews. Thematic analysis
was used, and the quantitative data was analysed using SPSS and Excel as analysis
tools. The key findings of the study established that franchise businesses appear to
contribute toward job creation in the Walvis Bay area. Additionally, franchise
businesses offer specific benefits and advantages compared to informal businesses
or those operated by sole owners. Franchise-run businesses are thus better able to
respond to poor trading conditions, such as those experienced during the COVID-
19 pandemic. Further results from the study indicate the rapid growth of the
franchising sector and suggest that these types of businesses are expanding more
rapidly than traditional businesses. The study has implications for business
stakeholders in the Walvis Bay area, including the Municipality, who are keen to
drive investment and job creation in the region. The study offers the following
recommendations: 1) the increased provisions of specific training and development
opportunities for all stakeholders involved in this sector, such as franchisees and
franchise staff. Such training should address multiple aspects of the franchising
business model. 2) Additional regulatory support to enable more accessible finance
opportunities, 3) increased provision of municipal land to encourage franchise
business development and 4) promotion of local franchise business.
Additional information
Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2022
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