Friday, June 25

Micro franchise scheme to draw more small entrepreneurs, says ministry

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Deputy Minister of Domestic Trade, Cooperatives and Consumerism Datuk Rohani Abdul Karim said the government introduced the micro franchise system on Oct 13 last year to attract more small and micro entrepreneurs into the franchise businesses.

The Franchise Micro-Financing Scheme offers a maximum funding of RM50,000 to local franchisees of low and medium income, she said, addding such businesses usually operate out of kiosks or push carts.

“The mobile franchise is an initiative by the ministry to encourage more Malaysians to enter the franchise business even with a low start-up capital,” she said in reply to a question from Datuk Haji Matulidi Jusoh (BN-Dungun) at the Dewan Rakyat here yesterday.

Matulidi wanted to know the success of the mobile franchise scheme introduced by Perbadanan Nasional Bhd (PNS) for Bumiputera entrepreneurs.

Rohani said 60 franchisors have joined the mobile franchise programme, which the ministry has been promoting as part of its Community Franchise Programme since October 2011.

“The Franchise Micro-Financing Scheme has approved loans for 181 Bumiputera potential franchisees including 18 franchisors in such sectors as food and beverages, services and maintenance, beauty care and health,” she said.

The perception that franchising is a highly risky business needing a large working capital is wrong, she said, stressing the local franchising scene is open to anyone with the determination and willingness to succeed. — Bernama