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An innovative tool to facilitate entrepreneurship : Adie’s social microfranchise

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The aim of this High-Level Capacity Building Seminar is have an international exchange of information on inclusive entrepreneurship actions across the European Union and on how the European Union Structural Funds can be used to support actions that combine entrepreneurship promotion and social inclusion.

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An innovative tool to facilitate entrepreneurship : Adie’s social microfranchise

  1. 1. An innovative tool to facilitate entrepreneurship : Adie’s social microfranchise 2014
  2. 2. 2 Adie has launched an innovative business approach, Social microfranchising, aiming at creating between 3,000 & 5,000 self-employment opportunities ORIGINS Since 1989, Adie has granted over 130,000 loans in France (>14,000 in 2013) In 2009, Adie launched an innovative business approach in order to meet the needs of individuals who lack a viable business project idea and/or do not want to start their business alone : Adie Social Microfranchising GOAL Overall, Adie aims at creating between 3,000 and 5,000 independent jobs by 2020 IMPACT Over 120 jobs have been created withing the two first microfranchise networks, whose cumulated job creation potential exceeds 1,000. Five other microfranchise projects are currently under study or at a pilot phase
  3. 3. 3 Our mission is to offer unskilled people a turnkey business activity to be developed within a franchise network for a small initial investment • Trademark • Shared services • Know-how Micro- franchisee Micro- franchisee Micro- franchisee Micro- franchisor Microfranchising is a development tool that seeks to apply the proven marketing and operational concepts of traditional franchising to very small businesses. Microfranchisees are members of a franchise network and have therefore access to a trademark, shared services, and the franchisor’s know-how.
  4. 4. 4 How Adie create a microfranchise? Dedicated investment fund (AMSI) Invest Adie’s branch network Business partner: large company or social entrepreneur Micro- franchisee Micro- franchisee Micro- franchisee Micro- Franchisor Dedicated incubator: Adie’s Social Microfranchise (AMS)
  5. 5. 5 Two different types of social microfranchise Chauffeur&Go • Chauffeurs without vehicles • Launched in 2010 • 2013 : 90 chauffeurs in the network • Objective 2014 : + 40 chauffeurs Other projects under study (ex : cyclotaxis) La MicroFranchise O2 Adie • Gardeners • Launched in 2011 • 2013 : 30 gardeners • Objective 2014 : + 50 microfranchisees Other projects under study (ex : street food, ironing…) MICROFRANCHISE IN PARTNERSHIP WITH LARGE COMPANIES Large job creation potential (minimum 200 microfranchisees per network) MICROFRANCHISE IN PARTNERSHIP WITH ENTREPRENEURS Medium job creation potentiel (around 50 microfranchisees per network) 1 2
  6. 6. 6 Adie Social Microfranchising : an innovative initiative to address unemployment • An innovative answer to unemployment • More and more low-income entrepreneurs • AMS offers turnkey business concepts to be developed in microfranchise networks • An innovative solution against start-up obstacles • Strengthening small businesses sustainability • High replicability and scalability
  7. 7. 7 We have identified key success factors to develop microfranchises, but still face challenges • Microfranchise key success factors • Size, accessibility and sustainability of the market • Solidity of the business model at both franchisor and franchisee levels • Expertise and mindset of our business partner • Transparency and balance in our partnership with large firms or entrepreneurs • Main challenges to be faced : • French complex legislation which can sometimes appear as a real constraint for social innovation and the development of simple concepts, scalable and easy to duplicate (e.g. education requirements to become a bicycle repairmen or a home delivery driver in France) • Development of sustainable business model at both franchisor’s and franchisees’ levels which can be challenging when we talk about small businesses • Project development path which is often slowed down by operational issues • Internal processes, training and communication have to be adapted and are key to secure the appropriation of the project by local teams
  8. 8. 8 Summary • Adie launched an innovative business approach in order to meet the need of individuals with no business projects or not ready to launch their own business alone • By developing social microfranchises, Adie aims at offering unskilled people a turnkey business activity to be developed within a franchise network for a small initial investment • So far, Adie succeeded in launching two microfranchises creating 120 independent jobs and has five other projects under study. Overall, Adie aims at creating between 3,000 and 5,000 independent jobs over 10 years • Even if the potential of social microfranchise in job creation is huge, the sustainability of each franchise is secured when economic break even is reached both at franchisees and franchisor levels. At franchisor level, it can happen three years after project launch for instance. Frank, microfranchisee in gardening

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