Here’s a stimulating number … 36,000 new jobs

How valuable is franchising to the overall economy?

Here’s an interesting article on some new stats from the IFA (the International Franchise Association) about the stimulating effects of franchise operations on job creation …

Franchising and job growth …

These numbers are also interesting in context.

From the period 2001-2005, the annual rate of franchise economic output grew at an average of 9.7% a year.

Even in the current 2009-2010 period, that output has continued to grow at a rate of 2.8% … an uptick from a decline of 0.7% in 2008-2009 (a decline less severe than the 2.4% fall in GDP over that same period).

What’s the explanation for the strength of franchising in the face of economic challenges?

Proven systems and methodologies.

Unlike a business owner who has never experienced a downturn, a franchise system is built to meet a variety of challenges, including economic slowdowns.

The system, in the case of a franchise, is the solution.

It is heartening to see some economic bright spots in our industry leading the overall economy out of our current stagnation.

And for those interested in becoming a franchisee at some point, the article also outlines some good things to consider before making the leap into a new business venture.

But overall, the numbers continue to favor franchising as both an engine of the economy and a driver of job creation.

It’s also a great way to jump into the business world as an entrepreneur, especially if you don’t really know “how to” run a business.

Because a good franchise system is exactly that … a system.

And a good proven system will always be more successful than an independent owner using “trial and error” as a business plan or personal path to success.

Jodie Shaw