Expert says franchising Sri Lanka's safest bet for achieving swift economic growth

INDIAN Small Business & Franchise Association (ISFA) Additional Director General Sonya Chowdhry yesterday highlighted the potential of franchising as a low-risk and proven approach to stimulate economic recovery, propelling the nation towards its lofty goal of reaching 5% GDP growth in 2025.

- BY JANANI KANDARAMAGE

Delivering the welcome address at the Sri Lanka Franchise Show organised by the ISFA, she said franchising offers a tested business model that provides both direct and indirect employment. Noting the difference between the two phenomena, she argued that direct employment arises from the operation of franchise outlets, while indirect employment stems from supply chain and support services.

"In the present, with approximately 1 million youth in Sri Lanka, a significant number are engaged in informal sectors like three-wheeler driving, while others aspire for Government jobs, which are limited and low-paying," she remarked, adding, "This trend highlights a gap in employment opportunities for the youth."

To avert this cascading crisis, Chowdhry argues that Government investment in a proven business framework like franchising, rather than in high-risk, untapped initiatives, is unlikely to lead to losses.