SEC reports on barriers to ‘social franchising’

The Social Enterprise Coalition has just published what I think is probably the first in-depth study of the use of — and barriers to — social franchising as a means of starting and growing new social businesses.

The report concludes that while ‘replication’ does occur in the social enterprise sector — the franchising or licensing of an existing standardised business and business model, but for social purpose — there are also numerous barriers to the successful use of franchising, including inadequate support and appropriate financing (grant-makers are suspicious of the ‘commercialism’, while investors believe the method to be insufficiently dynamic and not capable of producing a return quickly enough), and poor awareness within the sector.

You can read more about the project on SEC’s website here and download the report in its entirety here.

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