Analyzing the Impact of Franchisee Development on Entrepreneurship Trait Matrix- An Empirical Evidence

Abstract

The study tried to find out the entrepreneurial process that exists in franchised outlets and to what extent the franchisees possess the entrepreneurship skills. The study also highlights and explores the dimensions of the entrepreneurial process as the unique feature of entrepreneurial firms and franchisee development dimensions. The questionnaire was administered to total of 325 franchisees out of which 306 were received back. Data collection was done at a point of time. Data was analyzed by using several statistical tools and techniques like descriptive statistics, correlation, ANNOVA and Structural Equation Modeling (SEM).The findings of the study reveal that franchisee development has got a positive and significant impact on entrepreneurship development. Franchisees also exhibit entrepreneurial behavior and possess entrepreneurship traits. Franchising system of entrepreneurship can serve as a tool for poverty alleviation. In developing countries franchising can accelerate economic growth by reducing unemployment, creating job opportunities and providing managerial expertise & training to the local small entrepreneurs. From entrepreneurship point of view, several authors have alleged that although the franchisors are usually the real entrepreneurs while as there is a doubt in considering franchisee's activities running and managing their outlets as the entrepreneurial firms. This study provides the empirical evidence to the fact the franchisees have got positive impact on entrepreneurship development.