“Because Not Everyone Is an Entrepreneur”

Without the proper business skills, microcredit can become a debt trap. Microfranchising offers an alternative by providing a proven and easily replicated business model. An interview with Scojo Foundation director Graham Macmillan.

Scojo Foundation has trained over a thousand people in nine countries to sell affordable reading glasses and eye care products in their communities (Photo: Darby Films)

Scojo Foundation has trained over a thousand people in nine countries to sell affordable reading glasses and eye care products in their communities (Photo: Darby Films)

Microfranchising: The franchisor provides the training, tools, and goods to be sold - anything from ice cream to mobile phone service. The franchisees then go out and sell these goods and services, making money for the franchisor and themselves.

Could the Scojo microfranchising model work for other kinds of businesses in the developing world?

I absolutely believe that this is the case. Microfranchising is so powerful because not everyone is an entrepreneur. Microcredit gives someone access to capital; it does not give them access to a proven business plan or system. Microfranchising enables low-income people to follow a series of steps that are clearly laid out. If they follow these steps with passion and determination then they can achieve a great deal of financial and social success.

"Microfranchising is so powerful because not everyone is an entrepreneur. Microcredit gives someone access to capital; it does not give them access to a proven business plan or system." Graham Macmillan

"Microfranchising is so powerful because not everyone is an entrepreneur. Microcredit gives someone access to capital; it does not give them access to a proven business plan or system."

Graham Macmillan

Is microfranchising just another way to tap new markets?

There are two schools of thought with microfranchising. One is that as long as there is a franchise that makes an entrepreneur money then that is good. It is our belief that making money is certainly important, but what is more important is the product or service being offered. Our products, reading glasses, have a tremendous social and economic benefit for the customers. Being able to see clearly up-close enables our customers (weavers, artisans, and farmers) to make more money to provide for their families. A microfranchise selling "widgets" or something with little-to-no social value is just that - a product being sold for money.

Could microfranchising be one of the next "big things" in development?

I would be careful to say that microfranchising is one of the next "big things" in development. I am hesitant because there are too many next "big things" and few proven results. Even in microfinance, there has been success, but the potential market has barely been scratched.

Do I believe microfranchising is a potentially powerful development tool? Yes. Do I believe that microfranchising has unique advantages over other market-based development models? Yes. Do I believe that microfranchising is the next big thing? We shall see. What is important is that we need a lot of well-coordinated actors implementing the model and a lot of investors supporting these efforts.

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Is microfranchising an improvement on microcredit?

The tremendous advantage to microfranchising (or whatever term you want to call it) is that it is incrementally additive to existing efforts. There is no reason why Scojo can't tap into existing networks of providers, be it microcredit borrowers, health workers, or consumer product sellers. This way, you don't need to re-invent the wheel and create whole new distribution networks. A simple and affordable microfranchise can be easily plugged into existing efforts. That, to me, is where to power of the model is. There are certainly a lot of challenges to be worked out, but it is there.

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More about Scojo Foundation

Founded in 2002, Scojo operates in nine countries, with over a thousand "Scojo Vision Entrepreneurs" working either directly with Scojo or through franchise partners. To date, the company has sold around 70,000 pairs of glasses with 80 percent of these sales happening in the last 18 months. Overall, the organization estimates that there are 700 million people who still need reading glasses.

Roughly 75 percent of Scojo Vision Entrepreneurs are women. Male entrepreneurs can only be found in India due to cultural sensitivities of women traveling from village to village alone. Scojo addresses this by having women work with their husbands and sons in teams.


editor: Valdis Wish

publishing date: August 2, 2007

 

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