Emerging countries that heavily depend on oil (and natural gas) revenues need to find new ways of creating wealth. Franchising is a business model that can help the development of a diversified economy and create jobs on a large scale as evidenced by the experiences of several emerging countries (Brazil, South Korea, Malaysia, Vietnam, etc.).
Franchising can significantly contribute to economic output, job creation, economic modernization, promotion of an entrepreneurial culture, development of domestic small and medium-sized enterprises (SMEs), improvement of the quality and productivity of the local labor force, and improvement of the standard of living of the local population, among other benefits.
Algeria, an oil-rich emerging country in urgent need of economic diversification, can greatly benefit from franchising. In this study, we investigate the state of franchising in Algeria by surveying local franchise practitioners. We identify roadblocks that have thus far prevented franchising from playing an important role in the economy of the country, and we make recommendations for a meaningful development of franchising in Algeria.
