Business Viability Literature Review

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Literature Review “Business Viability: A Comparison Between Franchises and Independent Business” by Lewis (2009) aims to investigate the advantages and disadvantages that are experienced by the entrepreneur as the owner of an independent small or medium enterprise, or franchise business and its environs. Business opportunities can mean different things to different people. While all franchise and independent businesses for sale are business opportunities, not all business opportunities meet the requirements for being franchises, nor are they in the strictest sense independent businesses. SMEs and franchise businesses are part of a vibrant and growing sector in most economies round the world. Specifically the study came out with the following…show more content…
Entering into a business in general can be quite a challenge especially when an entrepreneur still lacks enough knowledge and experience in business. The study came up with a model that would determine if the franchise will succeed or fail. The researchers also cited some of the factors that may affect the economic sustainability of the franchise. The experience background of the franchisor contributes greatly to the viability of the business because: first, franchise business concepts are developed by the franchisor in a standardized manner although these concepts are subject to change by acquiring a first-hand experience with meeting the clients and adapting to their needs and; second, with the experience acquired by the franchisor through the years, the risk of committing errors are less likely to…show more content…
al (2014) entitled “Factors Influencing Entrepreneur Choice of Franchising as a Business Model: The Case of Mankweng Township in the Limpopo Province of South Africa” states that the entrepreneurs who are inclined to have franchising as a business type are influenced because of its established benefits. These are prior performance record, recognizable company name or brand, successful business model, and business training and management program. It is also stated that the intrinsic managerial skills of the entrepreneurs are important to be successful in franchising business in the province of Limpopo, South

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