FOROMIC
Diagnostic Study of the Microfranchising Environment in Haiti
October 3, 2013
Daisuke Funai
International Rescue Committee
Introduction
This study was designed to inform the MIF/IDB’s agenda “to pilot
and test the development of microfranchising models that
provide both employment and business opportunities to people at
the base of the pyramid (BoP),” particularly for women and
youth.
Introduction
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current economic activity at the BoP
income and consumer spending
enabling environment
access to finance
aspirations and interests of women and youth
complementary programs serving vulnerable women and youth
>> microfranchise sectors and companies
Lessons Learned
Economic Activity at the Base of the Pyramid
Lessons Learned
Income and Consumer Spending
Lessons Learned
Enabling Environment and Access to Finance
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cumbersome regulations and bureaucracies
lack of production, innovation
low capacity of the workforce
dependency on imports
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Few people qualify for or use financial services.
Lessons Learned
Youth and Women’s Aspirations and Interests
And Complementary Programs
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How to manage money?
How to assess demand?
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Few organizations working in youth livelihoods and lack of
knowledge.
Key Sectors and Opportunities
Prepared Food Vendors
Poultry
Key Sectors and Opportunities
Dairy
Fish
Key Sectors and Opportunities
Agricultural Production
Mobile Banking
Key Sectors and Opportunities
Garment Manufacturing
Artisanal Crafts
Main criteria for the selection of these models
Identifying sectors
Identifying companies
Potential for microfranchising
Market size
Competitive
Landscape
• proven business models; strong, recognizable brand; high
management capacity; willingness for partnership; etc.
Microfranchise model
Microfranchisee’s
Profile
Other factors
(e.g., safety)
• feasibility of systematizing and replicating a component of its
business model to scale, profitability, etc.
Microfranchisee’s perspective
• Beneficiaries’ interest in working with each of the companies,
minimum income benchmarks, etc.
Main criteria for the selection of these models
→ Brand/quality recognition
→ Willingness for partnership
→ Model aligns with company
strategy
→ Management capacity
→ Ease of conversion for
business operations
→ Model maturity/readiness
→ Financial feasibility
→ Profitability
→ Unmet demand / market size
/ scalability
→ Enabling regulatory and
operational environment
→ Franchisee - ease of entry
→ Conforms with international
best practice
Main criteria for the selection of these models
Model maturity rubric
4 - highly conducive or
high potential for
microfranchising model
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3 - somewhat conducive
or has potential for
microfranchising model
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2 - some risk for
microfranchise model
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1 - high risk for
microfranchise model
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The company has conducted market studies.
The company has already piloted or developed microfranchise business models.
The company has already implemented a form of microfranchising and is ready to refine its
models or approaches and reach greater scale.
The company may have conducted market studies.
The company has considered expanding through different models and strategies that resemble
microfranchising and has taken some preliminary steps to realize this vision.
The company may have ideas or strategies but has yet to realize them due to nascent stages of
model development or lack of funding.
The company’s current business model would be simple to systematize and replicate for
microfranchising. (e.g., food distribution)
The company probably has not conducted market studies and its plans for expansion are based
on assumptions.
The company may have considered expanding through models and strategies that resemble
microfranchising but has taken little action to realize this vision.
The company may have ideas or strategies for expansion, but these plans rely on other external
variables beyond their control.
The company has not conducted market studies and its plans for expansion are based on
assumptions.
The company may have considered expanding, but all ideas are in nascent stages and they have
taken little action to realize any vision.
The company may have ideas or strategies for expansion, but these plans rely on other external
variables beyond their control.
Main criteria for the selection of these models
1. promote microfranchising as a viable, productive and
sustainable strategy,
2. allow the overall strategy to reach scale,
3. engage vulnerable populations such as women and
youth, and
4. promote innovative private sector development
models.
Main criteria for the selection of these models
1. promote microfranchising as a viable, productive and
sustainable strategy,
2. allow the overall strategy to reach scale,
3. engage vulnerable populations such as women and
youth, and
4. promote innovative private sector development
models.
Business Models with Potential for Success
Business Models with Potential for Success
Business Models with Potential for Success
Business Models with Potential for Success
Business Models with Potential for Success
Recommendations
1. Identify priorities for microfranchising and Haiti.
2. Begin with proven and simple models to quickly promote
microfranchising as a viable strategy.
3. Develop and refine more innovative models.
4. Build foundational skills and knowledge, especially with
regard to beneficiaries’ long-term financial goals.
5. Use IDB and MIF’s influence to improve financial services.
6. Work with urgency to kick-start project in Haiti in order to
sustain enthusiasm, interest and momentum with
companies.
7. Allow enough investment and time for strategy to develop.
Muchas gracias.
Daisuke Funai
International Rescue Committee