Most poor and low-income people in Latin America and the Caribbean do not have opportunities to build income and savings to allow their upward mobility. They have limited access to formal jobs and become entrepreneurs out of necessity, creating informal businesses that do not provide a stable source of income and have a high risk of failure.
The MIF aims to expand the adoption of microfranchising as a recognized strategy to build entrepreneurial capacity and increase the income levels of disadvantaged populations. Microfranchising is the replication of a proven, low-cost, simply packaged business model that provides potential entrepreneurs with the tools and support they need to run businesses and grow as owners of profitable microenterprises.
- Piloting and testing different microfranchising models, including those that are purely commercially motivated, as well as those that improve access to essential products and services such as health, education, and energy.
- Testing, systematizing, adapting and evaluating new and existing models from LAC and other developing regions.
Results and Impact:
- The expected results are: increased number of successful microfranchises in the LAC region and improved business skills of low-income populations.
- The expected impacts are: increased incomes, increased profits, and higher survival rates vis-a-vis typical microenterprise startups.