PROSPECTS FOR THE DEVELOPMENT OF THE SOCIAL FRANCHISE IN UKRAINE

Keywords: franchising, business, social component, impact-investing

Abstract

The article is devoted to pressing issues of the development of social franchising as a modern business model. The main features of a social franchise and a charitable project are analyzed, the general and the special are defined. It is proved that social franchise is not a charitable project. The factors that influence the development of the social franchise business model in Ukraine are considered. Amongst them there is development of the national franchising market, expansion of the segment of small and medium-sized businesses, high level of sustainability and quality of projects. It is shown that the main areas of the Ukrainian economy that use franchising are services, trade, public catering, which is all in line with global trends. The experience of developing franchising in the USA is analyzed in the context of priority segments of the service market: housing, health care, recreation, etc. The types of social franchise in the national market are considered. Particular emphasis is placed on franchising impact investment. The average indicators of acquiring a franchise in Ukraine in certain areas of activity are analyzed. Using the example of existing restaurant business enterprises, it is shown that the social franchise model is relevant for mid-level projects. The impact investment criteria developed by the Global Impact Investing Network are considered. It is shown that the development of this type of social franchise is facilitated by national information platforms. A quantitative analysis of social franchises based on open information sources is carried out. It is established that the largest part of the projects was implemented in the field of education. The key factors of influence on the development of social franchise in Ukraine are identified. The relevance of using the franchising model is reasoned on the example of the United States. The main indicators that determine the conditions for acquiring a franchise in the national market are studied. The financial sources of creating such a business are given. Conclusions are drawn about the existence of economic grounds for further development of the social franchise.

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Published
2022-07-26
How to Cite
Arovina, M. (2022). PROSPECTS FOR THE DEVELOPMENT OF THE SOCIAL FRANCHISE IN UKRAINE. Economy and Society, (41). https://doi.org/10.32782/2524-0072/2022-41-26
Section
ECONOMICS