Micro Franchising for Development in Nicaragua

Some people ask us, a micro-what? Although it is a new concept, micro franchising has its roots in traditional franchising elements and approaches.

Replicating the well-defined strategies of a successful business to another location by a different team, however, on a smaller level and to make a considerable impact is what micro franchising is all about. 

Mercado Fresco in Nicaragua, for instance, demonstrates how micro franchising complements traditional approaches in fighting poverty. Operators work from their home-based stores to make affordable and high-quality food available for low-income communities in Nicaragua. The list of items includes bread, dairy, vegetables, rice, etc. From customer service to food handling, marketing, and money management, supply hope also trains the operators with all business stuff to maintain and sustain their very own enterprise.

Workers are given proper equipment and supplies, including baskets, calculators, signs, and other inventory costing around a thousand dollars to open and start operating the store. Within the next six to eight months, an average micro franchiser starts earning a stable monthly income that eventually exceeds the initial one-time investment. In fact, the needs of each store are precisely determined in the testing period so they can focus on growing the sales rather than filling up the stocks or other core stuff.

Piloted by Elizabeth Valente from Supply Hope and a few others, Mercado Fresco or Fresh Market is one of the first successful micro franchises to achieve sustainable operations in Managua, Nicaragua, since 2012.

For how the model operates, micro franchising is called as a business in a box. It is easy to learn and manage and also has the potential to grow quickly. However, the success of the store also depends on how determined the operators are to make a living for themselves and take their community forward. 

The stores are mostly owned by people who come from financially vulnerable families earning merely $2 - $3 per day. Franchisers like Supply Hope design the entire franchising model for such operators so they can stand themselves as micro-entrepreneurs and get the opportunity to uplift themselves and their families. Working on a predesigned plan gives them the time and energy to market their business and serve the clients better rather than getting caught with managing or fixing the supplies and equipment.

It may seem like a gamble, but following an appropriate procedure and with inventory control, the losses are not that major since the operators work day and night to bring about the needed change and development in their routine and overall lifestyle.

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Created on Oct 19th 2020 09:23. Viewed 275 times.

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