Minority entrepreneurs increasingly interested in franchises
By: Ashley Curtis
23 December 2011
A recent study suggests that a greater percentage of Asians, African-Americans and other minorities are buying into franchised businesses, reports Entrepreneur.
The International Franchise Association (IFA), who conducted the study, believes that starting an independent business is taking a backseat for minority racial groups in favour of business franchise opportunities.
"The rise in minorities is a reflection of demographic changes," according to IFA spokesman Matthew Haller. "Franchising offers some stability that you may not get going it yourself through a start-up."
In addition, a report by PricewaterhouseCoopers suggests an increase in minority-owned businesses over the years as the number of white franchise owners declined. The latest figures, from the US Census Bureau's 2007 Survey of Business Owners, showed minorities owned 20.5 of franchised businesses.
According to Smallbiztrends.com, this figure could be even higher as 2012 looks set to be the year of the franchisee.
"2012 will be a very important year in franchising," writes Joel Libava, an expert in franchising. "There's a lot of pent-up demand for the great products and services that franchises provide to both consumers and businesses.
"If lenders start marking more loans available for people who want to start businesses, there's a large pool of prospective franchisees sitting in the wings," he added.
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