Lower Risks and Greater Rewards Attract Hispanic Entrepreneurs to the Franchising Business Model
The statistics concerning Hispanics in the United States reveals a burgeoning market. Approximately one in every seven people living in the US is of Hispanic origin, and this ratio is expected to increase to one in every five by the year 2012.
Equally impressive are the number of Hispanics who are turning to franchising to make their dream of business ownership a reality. According to franchise industry experts, franchising is attracting Hispanics with entrepreneurial opportunities that offer lower risks … greater rewards … and control over their destiny.
Convinced that franchising is the best business model for entrepreneurs; Hispanics also see franchising as a proactive answer to the vast corporate layoffs over the past two decades. What's more, the franchising industry as a whole is reaching out to Hispanics more than ever before. The combination is bringing out a decidedly multicultural image to business ownership.
One of the greatest appeals of franchising has been the potential of lowering business risks by associating with an established brand name and proven successful business plan. Franchising is ideal for Hispanics because it offers a total system that helps ensure success. According to a U.S. Department of Commerce study … less than 5% of franchise businesses were closed each year between 1971 and 1997. Compare that statistic to a U.S. Small Business Administration study that revealed 62% of non-franchise businesses were closed within the first six years of their existence between 1978 and 1998.
In addition, franchising is ethnic and gender neutral. With a franchise, your success greatly depends on an individual's skills, work ethic, and ability to adhere to the established business model provided by the franchise company. Plus, the franchise business model offers Hispanics on-going support and training. As a franchise business owner, they don't have to go it alone or learn by trial and error.
The instability of corporate America has also inspired more Hispanics into franchising. They realize that if you pick the right franchise, you have an opportunity to become a successful business owner much easier than if you start from scratch. To aid in the franchise selection process, independent Internet portals, such as www.MyFranchiseExpert.com and www.LetsFranchise.com, have successfully guided scores of future franchisees towards exciting opportunities across a spectrum of business categories and investment levels.
As the general population of the US continues to diversify an increasing number of Hispanics will seek franchise opportunities. The International Franchise Association's (IFA) Education Board is actively informing Hispanics that they don't have to be millionaires to get into franchising. This dynamic organization is educating Hispanics and minorities about private equity … tax credit … incentives … and debt instruments that can help bridge the gap between an individual's net worth and their entrepreneurial potential.
They are also working to improve awareness about franchising in the Hispanic community by publicizing opportunities in franchising, how franchising works, and the cost of acquiring a franchise. The IFA's Diversity Institute Advisory Council states, "The bottom line is franchisors are missing economic opportunities if they don't reach out to Hispanics."
As the franchise industry embraces Hispanics and Hispanics in turn respond to franchise opportunities … it's obvious both are supporting each other because it is a "win/win" situation and it just makes very good business sense. Savvy Hispanic entrepreneurs clearly understand the many advantages of the franchise business model. And an increasing number are turning to franchising to support themselves, their families and generate wealth.