Franchising as entrepreneurial activity: Finnish SME policy perspective

Abstract

The present study takes an entrepreneurship viewpoint to franchising. To create a conceptual background, past franchising literature was reviewed and prior studies considering franchising as entrepreneurial activity were analyzed. The current Finnish Entrepreneurship Policy Program was utilized to explore the domain of entrepreneurship and franchising. The question is, how franchising is linked to the aims of the Entrepreneurship Policy Program and how franchising could potentially be used to foster SME activity in the Finnish economy? The literature analysis showed that prior franchising studies have rarely regarded franchising as a form of entrepreneurship. Likewise, theories explaining the birth, growth and survival of franchising are rather distant from entrepreneurship. However, recent franchising enquiries have taken an approach that comes closer to entrepreneurship. Franchising is a rapidly growing form of business and its importance in the economy increases. The investigation indicated that franchising has multiple features overlapping with the present small business policy agenda. Hence franchising could be used as one vehicle to attain the set objectives.