ADVANTAGES OF FRANCHISE SYSTEM FOR DEVELOPMENT OF ENTREPRENEURSHIP

Abstract

Franchising is considered the most successful marketing concept around the world. Today, many franchises are offered, and it is incomparably easier and more secure to develop entrepreneurial spirit under the patronage of the already developed system. Franchise is called long term, firm contractual cooperation between independent companies or entrepreneurs, franchisor and franchisee, where the franchisor provides the franchisee with a set of knowledge and gives it its brand. The number of franchise systems in the world is rising, and competition compels the franchisee to search for new and attractive offers. The largest number of franchises exists on the United States market, the number of employees in this market is in arrears, and achieves the high GDP measured in billions of dollars. In the United States are represented all kinds of franchise systems, from the automotive industry, restaurants, education, beauty salons to new forms of work from home. Canada is the second largest in franchising, many forms have been developed that place the franchise at the very top of economic business. In Europe, the less developed countries, such as Poland, the Czech Republic, Hungary, Bulgaria, etc., are developing more and more domestic brands and striving towards the conquest of international markets. New models of franchised business such as home-based franchises are being developed to allow most people to work from home. The application of the franchise system in our country would significantly contribute to the development of the domestic market. The future success of franchising in Serbia depends on the ability to innovate, improve the size of the site, provide education to interested small and medium-sized enterprises and entrepreneurs. Looking at all these countries and different markets, one can conclude that franchising is less developed in weaker economies, while economically more developed markets achieve even greater expansion in the form of GDP, employment, education, institutions. If each country awakens awareness of the value of franchising as a good technique for enterprises and entrepreneurs, it will open the possibility of expansion franchising to international markets, through marketing, social networks and the Internet. What is important is that this type of franchising is developing in our country and in this way it is slowly focusing on international markets. In franchising, the risk of business failure when starting a business is significantly lower than when starting a stand-alone business. Franchising is a way to use a proven, more successful, business model in a personal business, thereby reducing the likelihood of failure. The franchisee still continues to act substantially with his own resources, at his own risk, but under a different name. A well-known and famous brand is an additional guarantee for greater recognition and an automatically higher number of consumers. Franchising is a shortcut to a more successful business success. In the future, banks are expected to pay more attention to the financing of franchising, as both franchisees and recipients are referred to banks that receive the role of checkpoints and mediators.