SMEs explore franchise opportunities overseas
Buoyed by a highly competitive business investment climate and nurtured by government incentives, the small and medium enterprises in the UAE are eyeing matured markets overseas for franchising opportunities to maximise their growth potential.
Reflecting this trend, seven member companies of the Mohammed bin Rashid Establishment for Young Business Leaders accompanied by the establishment’s officials will participate in the Franchise Expo Paris.
To be held from tomorrow at the Paris Expo, the event will witness the participation of more than 450 companies and showcase hundreds of franchising concepts from international brands in more than 75 sectors.
Abdul Baset Al Janahi, CEO, Mohammed bin Rashid Establishment for Young Business Leaders, said: “The establishment is keen to support the SMEs in addition to offering enabling services and developing innovative ideas to help open up new growth avenues for our members, not only locally but on the international level as well.
“Franchising fairs are important platforms for start-up businesses to discover new opportunities, compare offers, and gauge latest business trends. Fledgling businesses can secure good deals through these fairs to accelerate their growth.”
Headed by Nisrin Safar, marketing manager, Mohammed bin Rashid Establishment for Young Business Leaders, the delegation will hold a series of meetings with leading corporate entities seeking to expand their businesses in the UAE and across the region.
Nisrin Safar said: “The establishment follows a clear marketing strategy to promote businesses of its members both locally and internationally. Franchise operations are valuable tools for securing sustainable growth for start-up companies. Helping our members evolve from young aspiring companies into large enterprises is one of the establishment’s key objectives.”
Franchising is globally recognised as a core factor promoting economic growth. The franchisee owns his or her own business and is legally independent, but benefits from the know-how, the brand image and the reputation of a franchise. Furthermore, the franchisee benefits from the franchise system of sales management, its advertising and marketing campaigns.
According to the French Franchise Federation, France ranks first in Europe with a turnover of about Dh232 billion in franchise.
French franchising represents 40 per cent of European franchising but it has also been able to develop its own franchise network [foreign franchisors account for about 10 per cent of the French market], while about one-third of the French franchises have at least one outlet abroad.
Last year, the establishment had organised a similar participation for a number of its members at the Canton franchise fair in China, which drew more than 14,000 exhibitors. The Mohammed bin Rashid Establishment for Young Business Leaders offers a wide range of enabling services to its members, including facilitating business agreements with leading government and private sector companies.
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