Franchising as a strategy for job creation in the clothing sector: a case study of Walvis Bay

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.