Franchisees’ and independent entrepreneurs’ skills: policy and strategy implications

Abstract

The study is based on the premise that business success is determined largely by the level of entrepreneurial skills of the promoter. Perceived entrepreneurial skills of franchisees are compared to those of independent entrepreneurs in Botswana. Some performance variables, like level of employment and sales, are also compared. A questionnaire-guided interview of 96 business operators was conducted and results analysed using both descriptive and inferential statistics. Literature study assisted in deriving the findings. Franchisees rate their entrepreneurial skills lower than the level independent entrepreneurs rate their own skills, but franchisees perform better than independent entrepreneurs. Most franchisees are male with little business experience when compared to independent entrepreneurs. The study recommends that franchising be promoted as one of the solutions to developing countries’ problem of generating enough business enterprises, which could assist in the diversification of the economy.