Factors Influencing Entrepreneur Choice of Franchising as a Business Model: The Case of Mankweng Township in the Limpopo Province of South Africa

Abstract

This study explored the factors that influenced the choice of entrepreneurs located in the Mankweng Township of Limpopo Province, South Africa, of franchising as a business model in establishing a fast food business. The study also sought to determine the managerial requirements the respondents believed were necessary to establish a franchise that is located in a peri-urban area, primarily catering to a rural population. The study was qualitative in nature and utilised the survey approach to data collection. Seven interviews were conducted within the purposively sampled population, with the semi-structured interview schedule as the choice of data generation instrument. As a result of this study it emerged that the influencers to entrepreneur choice to adopt franchising in this area were explicitly linked to the established benefits of franchising, while the inherent managerial skills of entrepreneurs were largely key to the success of franchise businesses in Mankweng Township. The study ultimately concludes that both influencers and managerial skill requirements are universal to both urban and peri-urban franchising and recommends that amongst other recommendations, entrepreneurs critically evaluate the market, with particular reference to particular franchises and the potential benefits they offer.

DOI: 10.5901/mjss.2014.v5n9p111