Franchise businesses offer more employment during crisis
The Jakarta Post, Jakarta | Fri, 06/19/2009 9:38 PM
Franchise businesses in the country are expected to absorb more employment amid the economic hardship and as a result the industry should continue to grow, Trade Minister Mari E. Pangestu said Friday.
Mari noted that the franchise businesses were attracting more employment because housewives and even unemployed people could easily enter into the business.
“Franchise business turnover reaches Rp 4.1 trillion per month. The growth of this business is around 3 percent per annum, and this could increase further,” Mari said at the International Franchise, License and Business Concept Expo and Conference (IFRA) at Jakarta Convention Center.
Indonesian Franchise Association chairman Anang Sukandar said in Jakarta Friday that more people, especially those who are jobless, would easily enter the franchise sector “because it is not hard to run.”
Franchisees, he said, would prefer sectors such as food, drink and cosmetic.
If there is enough government supports, he said, this business could grow by double digits in the coming years.
However, Anang said, the high bank credit interest of 14 percent per annum may hamper further growth.
“The ideal rate would be seven percent if we wish to see more growth,” he was quoted by Tempointeraktif.com as saying. (adh)
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