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Ethnic Minorities & Franchising

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Franchising the way forward

For businesses in today's turbulent environment, change is a common occurrence.

Unfortunately it is not always for the best and adapting to it can take time. Ethnic minorities have witnessed significant change in recent years that has led them to rethink their business options. Some of this change has been out of their control whilst others have taken advantage of the changes that have occurred to map out their own career paths.

Survival of the Fittest

Self-employment remains the main form of work for many first and second generation ethnic minorities, but the choice to go it alone was not always based on the desire to succeed and be your own boss, as for many it was due to discrimination in the job market and the alternative to unemployment. These businesses tended to be in the retail and restaurant trade, and were predominately family-run.

However, many third generation ethnic minorities have had to leave behind them the business backgrounds started by older family members due to changes that have occurred in the markets, which has led them to focus on other business formats.

The domination of the large superstores has led to the declination of traditional market sectors, such as grocery stores. The family run Asian corner shop, so long a feature of life in Britain, is disappearing. Numbers have dropped 25% in 10 years and the trend is accelerating. They no longer can compete on price and product availability with the large supermarkets and discount stores. Many of these stores now also open 24 hours, which was another competitive advantage for ethnic businesses.

The growth of the non-ethnic restaurants has also meant that Indian and Chinese restaurants no longer dominate the eating out market.

How Does Franchising Help?

Traditional ethnic businesses are going to bear the brunt of change, with many not surviving the competition of larger companies. Franchising however allows you to be your own boss in your own business, whilst providing you with the backup and support of a large organisation, empowering you with the ability to adapt to change. Buying into a tried and tested format therefore helps to reduce the risk of failure.

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