Pioneers Post
the business
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  • user warning: UPDATE command denied to user '408302_semagad'@'10.187.244.179' for table 'cache_filter' query: UPDATE cache_filter SET data = '<p>With resources at a premium, we urgently need our social enterprises today to achieve more with less.</p>\n<p>Over the last year, the Shaftesbury Partnership &ndash; an organisation that designs scalable solutions to chronic social problems &ndash; has been working to develop FranchisingWorks with Manchester&rsquo;s Commission for the New Economy, and Manchester and Salford City Councils. The Shaftesbury Partnership&rsquo;s model for social reform incorporates franchising as an effective means for rapid and sustainable scaling. FranchisingWorks uses commercial franchising to help previously unemployed people in deprived urban areas to own and work for franchise businesses.</p>\n<p>Whether social or commercial, franchising is a business model where a successful enterprise identifies and codifies the drivers, processes and practices that have made their business a success, and then helps others to set up similar organisations elsewhere. This reduces the risks and other barriers to start-ups, and franchise systems are proven to be more sustainable, grow more quickly, and employ additional people more quickly than independent start-ups. For this reason, retail banks continue to lend 50-70% of the start-up costs of a franchise &ndash; even in the current recession. (Start-up costs comprise the usual working capital, together with the cost of purchasing a license from the franchising system. This pays for the know-how developed by the founders as described above.) There are several hundred franchising systems in the UK that have proven their model multiple times and in multiple locations. And the majority of these are looking to expand further, often particularly in urban areas.</p>\n<p>The Shaftesbury Partnership has applied this desire for expansion with the challenge of high unemployment to design the FranchisingWorks programme, which helps to create new businesses and jobs using franchising by:</p>\n<p>&bull; Raising awareness in unemployment networks (JobCentre Plus, voluntary sector organisations, Welfare to Work providers) of the opportunities to own a franchise business.</p>\n<p>&bull; Identifying proven franchising systems that satisfy conditions of ethical trading, and introducing them to suitable candidates referred by the unemployment networks.</p>\n<p>&bull; Enabling people who lack the finances to purchase a licence to access a new fund that operates a &ldquo;rent to buy&rdquo; scheme for franchisees. This allows them to start trading immediately, and they can buy the license outright when they have built enough capital.</p>\n<p>FranchisingWorks is an example of how the respective strengths of the public, private and voluntary sectors can be drawn together to deliver effective, efficient solutions to social problems. The model is highly scalable and the Shaftesbury Partnership expects to set up equivalent operations in other major UK cities in 2011. But the principle of franchising can be extended much further, through social franchising, to support the work of social enterprises in the Welfare to Work space and, in particular, the new Government&rsquo;s Work Programme. To date, efforts to develop social franchising have struggled, often because they were insufficiently informed by the experience of commercial franchising organisations.</p>\n<p>This has been addressed in the FranchisingWorks model, and there has been widespread interest from both commercial franchisors and social enterprises.</p>\n<p>The Shaftesbury Partnership is currently researching social enterprises with proven models of creating sustainable jobs for people who have been out of work for long periods of time. Many of these are suitable to be adapted to become franchise systems. This would allow them to expand rapidly and play a leading role in the consortia that are being developed ahead of the tendering for the Work Programme next year. Together with the engagement of the commercial sector, franchising looks set to make a major contribution to job creation in the coming years.</p>\n', created = 1462313151, expire = 1462399551, headers = '', serialized = 0 WHERE cid = '2:15b272711c7dd94205be6509eda2af76' in /mnt/stor2-wc1-dfw1/408302/www.socialenterpriselive.com/web/content/includes/cache.inc on line 109.
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Franchising employment solutions

12 November 2010

Patrick Shine of the Shaftesbury Partnership explains how it is working with Manchester and Salford councils to pioneer a programme of social franchising

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