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Franchising to play a key role in the Philippines

Posted by graham on August 16th, 2013 in Business Trends in the Philippines

Franchising creates job opportunities, boosts consumption growth and promotes tourism. These show that Franchising plays a crucial role in maintaining a country’s economy.

During the Franchise Asia Philippines 2013 International Conference, Finance Secretary Cesar V. Purisima praised the Filipino franchisers and franchisees for their significant contributions to the Philippine Economy. They have spurred around 70% of the country’s growth due to consumer consumption. 

Purisima had said that the Franchising association could possibly play an important role in economic development as they stand at “the heart” of Filipinos: consumption. 

Franchises could be a crucial part of inclusive growth that President Aquino has been promoting in his SONA by localising supply chains and to create a strong brand or image that will stand out in Philippine Tourism. Secretary Purisima encourages franchising firms to not take the “easy way”, which would be importing their raw materials. 

Instead of importing, Secretary Purisima said that Franchising firms could reach out to local suppliers, train them and teach them the needed technical skills that will allow them to eventually become business partners. 

In line with that, he also encouraged the creation of more local brands “that can transcend cultures” and could possibly represent the Philippines abroad. As an example, he stated that there is a need to create more interesting and unique souvenirs for tourists that they would bring back to their respective countries. 

At the heart of inclusive growth is good governance and, according to Purisima, good governance is good economics.

 Source: Inquirer.net