Promoting franchises could deliver prosperity if supported, say business experts

Published on Saturday 15 May 2010 20:30

SCOTTISH entrepreneurs could create thousands of jobs and earn more than £1.5 billion for the economy if more support was given to the franchise industry, according to business experts.

More than 30,000 people are employed by franchises in Scotland, which generate more than 800 million in revenue. "Scotland needs to do more to promote franchising, which could increase its economy by millions of pounds a year and create thousands of jobs," said Brian Stewart, director-general of the British Franchising Association.

"In the UK, 34,000 franchisees support 455,000 jobs, but Scotland's share of that is only about 30,000. We could double that easily."

Despite the recession, more than 90 per cent of franchises reported a profit last year, including 80 per cent of those in their first two years of operation.

Gary Clark, of the Scottish Chambers of Commerce, said: "Compared to setting up a business from scratch, as a franchise you often get a lot of support from the various agencies out there.

"It's a good model, but it does need an enterprising mindset. Sadly, that's a spirit that's been lacking in Scotland over a number of years. If you look at the business start-up rate, it's not as strong in Scotland as in the rest of the UK."

Enterprise minister Jim Mather – a former franchisee himself – said the Scottish Government was keen to promote franchising as a viable option for enterprising youngsters.