How Business In A Box Is A Solution To Global Poverty?

Until almost a decade back, no one had heard the terms micro franchising or business in a box. Today the concept has emerged as a critical component for driving local sales and growing home brands with globalized innovations and thought processes.

Franchising has always been part of the American business landscape. It offers grass-root entrepreneurs the opportunity to make themselves a living and name into a business of their own. However, the franchising model demands steep costs, initiative, and know-how.

On the other hand, business in a box or micro franchising works to uplift the poor who has no to low business ownership experience. It has a systemized approach centered towards addressing the needs of low-income group communities. The concept replicates businesses like food stands or drive-in kiosks that predominantly sell low-cost items in high traffic regions.

What essentially happens is an already established business (franchisor) enters into an agreement with another business/ entrepreneur (franchisee) to help them operate under their guidance and name in exchange for a fee.

For instance, Supply Hope, a renowned micro franchisor operating in Nicaragua, trains, guides, and supports hundreds of low community individuals with no to little business expertise to become micro business owners.

Nearly half of the population in the world constitutes the base of the economic pyramid. A significant number remains in the extreme poverty sections with daily income varying between $1 and $3. The Supply Hope NGO helps such people to rise out of poverty and improve their living standards. The NGO develops a scaled-down franchise with a relatively smaller price tag for low-income groups to afford.

Beth Meadows from Supply Hope targets to not only provide business opportunities to low-income communities but alleviate poverty by facilitating the creation of jobs, economic activities, and product distribution in the BoP markets. Their piloted micro franchises adopt commercial operation and execution practices but from the viewpoint of the poor.

The concept helps the deserving and dedicated individuals climb up the income mobility ladder and gain access to food, shelter, water, medical facilities, etc.

It is safe to say that micro franchising fees are low, the products or services provided are high in quality, the access is widespread, and employability is greater. Within months the operators have seen a significant rise in their daily wages. Operators gain the necessary training to understand what they will have to tackle on the front end. The rest, including capital and stock, etc. are all taken care of by the franchisor.

While on the field, operators also gauge the problems or plus points for devising better business strategies. Employing locals for the locals allows serving the target markets better. This enables the operators and the franchisors to successfully adhere to their objective of rendering quality products at ultra-affordable rates to those in dire need.

It is not easy, and the process requires time and effort. But the rewards are significant, especially for societies with increasing income inequality.

Offering scalable business opportunities to the deprived may not be the only, but is one of the critical ingredients to eradicating global poverty. For people trying to meet their means with just $2 a day, micro franchising is a crucial step towards building a more sustainable livelihood for themselves and their families. The challenges may be substantially complex, but the rewards are valuable and enduring.

< a hredSupply Hope is a non-profit organization focused on creating opportunities for families living in poverty to earn a reliable income through micro-franchises.