Brazil's continuing franchising boom

While in the past the dream of every Brazilian was to be a full-time employee in a big company in the private sector or in the public sector, nowadays the scenario seems to have changed.

The number of people who want to run their own businesses and say goodbye to regular jobs and everything that comes in the package - especially the bosses - is growing.

Between 2002 and 2010, the number of young Brazilians aged between 18 and 24 who took a chance at becoming an entrepreneur rose by 74%, according to Global Entrepreneurship Monitor.

Yet since starting a business from scratch is so difficult in Brazil, the franchising model has emerged as the simplest and safest way to run your own business.

In the past 10 years, the franchising sector has been growing by an average of 10% to 13% annually, according to the Brazilian Association of Franchising.

In 2011, the sector generated profits of 89bn reals ($44bn; £28bn) and it is responsible for 837,000 jobs.

This year, Brazil's franchising industry is expected to grow yet again, by 15% in terms of profits and by 10% in terms of the number of franchisees across what now stands at 2,031 brands.

Questioned about why the franchise sector is growing so much in Brazil, Maria Cristina Franco, vice president of the Brazilian Association of Franchising, says: "Our franchising system has passed through many political and economical moments and that helped improve it.

"We showed maturity and consolidated a system that became a model to the whole world."

Brazil now occupies fifth position in the world franchising league table. The USA is the first one, with 800,000 franchisees, while Brazil has 93,000.

Ms Franco is optimistic of future growth in Brazil: "If our economy continues to grow responsively, I believe we can grow ten-fold.

Read more at BBC News, click here.




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