Franchising Contributing to Job Creation

Franchising Contributing to Job Creation

There is no question that, to grow sufficiently to ensure job growth, entrepreneurs need to create new businesses which in turn will employ more people.  This is easier said than done, as former finance minister, Nhlanlha Nene inferred at the opening of Cash Converters new store in Sanridge Square in Midrand.  “Jobs are not created through government announcements, but by people using their resources to start and build businesses. What is needed is a more dynamic business environment with higher rates of entrepreneurship which in turn will create those much-needed jobs.” Richard Mukheibir, MD of Cash Converters, backed that up confirming that every time one of its second-hand goods stores opened, 12 new jobs were created.

Franchising, a force to be reckoned with in South Africa for the past 38 years has been doing just that as FASA’s latest survey results show.

  • The employee count was pegged at 343 319, with the Retailing sector being the biggest employer. Sixty-five percent of employees are black, 24% white, 6% coloured and 5% Indian. The number of black employees has increased by 8%.
  • In total, some 20 000 people are employed by franchisors, while 323 592 are employed by franchisees. These figures include both management and staff.



  • Ownership by Previously Disadvantaged Individuals for 2017 was given at 17%, similar to the 18% mentioned for 2016. There appears to be a slight downward trend in terms of PDI ownership since the 2015 survey, which may be as a result of the changes to the B-BBEE Act of 2013. Categories such as Childcare, Education and Training, Personal services, Fast Foods and Restaurants and Building, office and Home services are above average in this regard. Approximately half the sample (56%) did not have any PDI ownership in their businesses at all.



  • When it comes to business ownership by women, the average percentage ownership is 25%. The sectors with the highest incidence of female ownership are the Health, Beauty and Body Culture and the Childcare, Education and Training sectors.


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