Why Start a Franchise Business Today?

It is a common perception for start up entrepreneurs to think that when you venture into a small business the major problem that you experience is funding. Recent report shows that one type of small business has shown stability during the past five years. This type of business is franchising which has been reported to receive more funding than any other small businesses in years after the global recession.

The year 2013 is a good year for start up entrepreneurs who wants to grab the franchise opportunity for a small business. Small Business Lending Matrix and Analysis reported that the franchise venture will release more or less $23.9 billion in a form of a loan which has been the biggest amount given since 2009 in financing and funding the industry. This available loan for franchise opportunity is deemed to sustain more than 59,000 franchise businesses, which gives more opportunity for entrepreneurs to buy franchise as their business venture. The government’s Small Business Administration has contributed to the loan program by granting about $5.6 billion to interested applicants.

The advocacy group International Franchise Association Educational Foundation prepared a report that mainly focuses on promoting the franchising industry by doing things like advancing the knowledge and professional standards in the industry of franchising. The business is said to generate almost 800,000-employment opportunity and about $106 billion in sales advancing the industry and attracting entrepreneurs to buy franchise. The report also states that the franchise opportunity for entrepreneurs has shown great improvements for four succeeding years followed by improved chances of growth, higher demand of transaction for unit and more banks willing to lend for an industry that has shown positive results and continues to improve year by year.

All the reports that was shown and released all produced positive feedbacks for businessmen to be convinced to buy franchise as their start up business. With the increased loans that are readily available to be granted to those who are interested to franchise business it is not a doubt that the industry of franchising will soon be a big one before other know it. However, with all the loans given the International Franchise Association reports that the $23.9 billion money is actually short for the total $26.5 billion that is actually needed to fund any start up operations or current business franchise opportunity at the present. The report was accumulated mainly using the data released by SBA, the Franchise Business Economic Outlook for 2013 and some other useful references available for compilation.

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