ENTREPRENEURSHIP AND FRANCHISING: A SURVIVING GUARANTEE COMBINATION?

Authors

  • Hilka Vier Machado Universidade Estadual de Maringá
  • Pedro Guena Espinha Pontifícia Universidade Católica do Paraná

Keywords:

Entrepreneurship, Small business, Franchising, Failure, Managerial experience.

Abstract

The micro and small enterprises are important in the Brazilian economic context; however, these kind of business have experienced high mortality rates, caused by external and internal factors including entrepreneur’s characteristics. On this context franchising is an alternative that intends to provide higher rates of success through the offer of a pre-tested and formatted business. However, this kind of enterprise is also subjected to failure. The present study intended to explore the reasons of failure in franchisees units. This research was carried through an ex-post facto and cross-sectional study. It was used the non-probabilistic sapling technique of the type snow ball. The collection of the data was done by a structured questionnaire. It was obtained data of 39 ex-franchised that finished their franchises from 2000 to 2004.  The data were analyzed by the non-parametric tests of Spearman and Kendall Tau. In conclusion it was verified that there is not a single feature determinant for failure, but a complex collection of associated features that contribute to franchising failure. Among these factors, financial aspects and peculiar franchising aspects are the most significant ones. Notwithstanding, the lack of managerial or sector experience are also critical factors to franchising failure, as they are in independent business.

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Author Biographies

Hilka Vier Machado, Universidade Estadual de Maringá

Doutora em Engenharia de Produção pelo Departamento de Ciências Sociais Aplicadas da Universidade Federal de Santa Catarina (UFSC). Professora do Departamento de Administração da Universidade Estadual de Maringá (UEM)

Pedro Guena Espinha, Pontifícia Universidade Católica do Paraná

Doutorando em Administração pelo Programa de Pós-Graduação da Universidade Federal do Paraná (UFPR). Professor do Programa de Pós-Graduação em Negócios da Pontifícia Universidade Católica do Paraná (PUC-PR).

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Published

2010-05-14

Issue

Vol. 11 No. 4 (2010)

Section

Resources and Entrepreneurial Development

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