Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CASE: Saudi youth urged to consider franchising as a serious option. RIYADH: Young entrepreneurs intending to set up small and medium enterprises (SMEs) should

   

CASE: Saudi youth urged to consider franchising as a serious option. RIYADH: Young entrepreneurs intending to set up small and medium enterprises (SMEs) should go into franchising, the Riyadh Chamber of Commerce and Industry (RCCI) advised recently. Franchising is a form of business by which the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees). Mohamed Almajaal, a member of RCCI's board of trustees, said that SMEs contribute about 21 percent to the Kingdom's gross domestic product and constitute about 53 percent of the manpower in the labor market. However, he said that studies indicate that the survival rate among SMEs is 67 percent for the first three years and 94 percent among those who went into franchising. Talking to Arab News, Almajaal said: "If they have a good or special idea which they believe in, they could compete. But they must go into franchising, which is a practical tool to expand." However, he added that the franchisee should know the franchising system and should not embark on business without knowing about it 90-100 percent. "He should know the core of the franchising business. He should know the problems to be encountered and how to solve these," he said. Almajaal said young entrepreneurs may face initial challenges in marketing and accounting, but the franchisor provides the system. ANSWER THE FOLLOWING QUESTIONS: Question 1: Discuss the pros and cons and challenges of franchising by young entrepreneurs in KSA. Question 2: Conduct web research and identify the sources of funds and the entrepreneurial support systems available in the Kingdom of Saudi Arabia.

Step by Step Solution

3.49 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Berk, DeMarzo, Harford

2nd edition

132148234, 978-0132148238

More Books

Students also viewed these Finance questions