A qualitative study on the characteristics of micro franchise business models in Selangor, Malaysia

Abstract

The micro franchise concept is one that provides business opportunities to low-income and poor populations. The business concept has been acknowledged as one of the tools to eradicate poverty, because the concept has provided opportunities to the poor to own and operate proven successful busines. Nonetheless, the concept is yet to be fully embraced by the poor and low-income populations in Malaysia. Even if the concept is embraced, little is known about the characteristics of micro franchise businesses in Malaysia, especially in the State of Selangor. The purpose of this research is to investigate the characteristics of the micro franchise business model embraced by the franchisees in the State of Selangor. A qualitative, exploratory, method was employed and in-depth semi-structured interviews were conducted on 10 franchisees in Selangor. Content analysis was used to analyze the data which resulted in generating the codes, categories and themes for this research. Affordable investment is the most significant reason for the franchisees in Selangor to venture into the micro franchise business. However, the micro franchise is only affordable for middle-income group and not for the poor or low-income group. It was also revealed that the business format franchise is the most preferred model for micro franchise businesses because of the simplicity of the business model. The research has provided an insight into the micro franchise businesses in the State of Selangor