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The Entrepreneur’s Source Reviews 3 Unique Resources for Minority Franchisees
As the demographics of America continue to change, it’s important for American businesses to adapt accordingly to accept a more diverse audience – promoting inclusion. This rapid pace of changing demographics accompanied by population growth has created unique opportunities for minorities wishing to enter the franchising sector.
Obstacles Facing Minorities in Franchising
However, when American minorities first look to becoming a franchisee, they oftentimes face obstacles due to a lack of knowledge about available resources. According to the International Franchise Association (IFA), the three main obstacles that minorities face when looking to invest in a franchise are:
- An informational gap
- A relational gap
- A capital gap
The Entrepreneur’s Source Reviews Minority Franchisee Resources
In order to try and counteract these obstacles that stand in the way, programs have been created to assist prospective minority franchisees in the investment process. Read on to learn about a few beneficial resources that minorities are encouraged to take advantage of when looking at investing in a franchise.
1. DiversityFran: This program acts as a “franchisee education and recruitment program designed to educate diverse prospective franchisees about opportunities about franchising wile assisting International Franchise Association members in reaching emerging markets and increasing diversity. Diversity Fran builds on relationships forged with leading organizations such as the National Urban League, Minority Business Development Agency, U.S. Hispanic Chamber of Commerce, National Black MBA Association, Association of Small Business Development Centers, U.S. Conference of Mayors and various ethnic Chambers of Commerce across the country.” It is their goal to send the message that franchising is an affordable way for minorities to realize the American Dream of business ownership. Since the inception of DiversityFran, this organization has created a bundle of one-day seminars aimed at educating minorities across varying topics including: The fundamentals of franchising, the legal aspects of franchising, financial assistance and more.
2. Diversity Institute: The purpose of this committee is to “promote and foster diversity and inclusion within the franchising community. The Institute serves as the home for IFA and the Foundation’s diversity and minority programs – education, research, scholarships and liaisons with other national organizations. The Diversity Institute provides information to assist IFA members in expanding their diversity recruitment and multi-cultural marketing efforts at all levels – franchisees, employees, suppliers and consumers.” The Institute’s goal is work with members of the IFA to promote education and communication of diversity. This is, in part, achieved through research and documentation of best practices of choosing franchisees and their hiring practices, through fundraising efforts to support diversity efforts, constant communication and continual education.
3. The Minority Business Development Agency (MBDA): The purpose of this U.S. Department of Commerce agency is to “link minority-owned businesses with the capital, contracts and markets they need to grow. We advocate and promote minority-owned business with elected officials, policy makers and business leaders. Serving as subject matter experts and advocates for the minority business community, we conduct high quality research and cultivate domestic and international relationships. The MBDA has established a nation-wide network, spanning 40 domestic business centers to help create and retain thousands of jobs each year. The MBDA’s programs help to equip minority business prospects with job creation, business scaling and expansion, increasing revenues and more.
When franchise brands embrace diversity by promoting inclusion of minorities and enabling them to invest in their system, this can help to create positive returns for the business as a whole, generating an improved growth strategy. Franchise brands have started the process of adapting to the changing demographics of America, and this adaptation has created immense opportunities for franchisees looking to invest in a franchise. For more information about resources available to minorities considering making the transition from Employment to Empowerment through franchising, contact an alternative career coach at The Entrepreneur’s Source today.