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Credit: Vaishnav Chogale

Aspiring young business owners favour franchises over independence

Fresh research has illuminated a significant trend in the Australian business landscape, revealing that starting a franchise is increasingly perceived as a secure and supportive avenue for aspiring entrepreneurs in 2023. 

The study, commissioned by CouriersPlease, a prominent parcel delivery service boasting a network of over 1200 Franchise Partners and contractors across Australia, highlights the shifting preferences of different age groups in terms of business establishment. The study found that 66% of respondents in the age bracket of 18-30 are inclined to opt for a franchise as their preferred business model this year, as opposed to venturing independently. This stands in contrast to 59% of those aged 31-50 and 37% of individuals above 50, indicating a pronounced proclivity among the younger generation for franchise ownership.

CouriersPlease’s research is especially relevant in the current economic climate, where uncertainties loom large. The survey, conducted among an independent panel of 1005 Australian adults, probes the viability of independent business endeavors during these challenging times. Specifically, it gauges opinions on whether the current economic scenario necessitates a more risk-averse approach and whether a franchise structure, with the support of a franchisor, is a preferable option to mitigate potential risks associated with starting a business.

A substantial 79% of all respondents believe that the current economic conditions make starting an independent business too risky. Intriguingly, 51% of the surveyed individuals express a readiness to embark on the franchise route instead of going solo. Given that the franchise sector comprises approximately 1,200 franchisors against a backdrop of around 2,569,900 actively trading businesses in the Australian economy, these findings underscore a substantial appetite for franchise ventures in the current environment. To explore the complete survey results, including insights based on age and geographical distribution, please follow this link: Survey Results Link

Richard Thame, CEO of CouriersPlease, delves into the rationale behind this phenomenon: “Younger demographics often face constraints in terms of accessing larger capital sums for an independent business launch. Additionally, they may possess limited business experience, making a franchise’s structured support system particularly attractive. Franchisors offer established systems, advanced technological resources, sales materials, digital marketing tools, and essential training – all of which contribute to setting up Franchise Partners for success.”

Richard further elucidates, “Opening a franchise provides a unique opportunity to become part of an established business model that arrives with a proven track record, brand recognition, an existing customer base, and adept technical and business guidance. From young parents aiming to harmonize business with their busy family lives to recent migrants keen on establishing themselves within their new communities, the franchise model offers the framework and support that individuals mulling over their business start-up journey require.”

Rukshan ‘Ruki’ Thilakaratne’s journey underscores this sentiment. Joining CouriersPlease as a relief driver in 2014, he subsequently acquired his first run in 2016. Based in Brisbane, he attests to CouriersPlease’s customer-centric approach significantly bolstering his business growth. “The company’s introduction of bulk customers and investment in new technologies have enhanced the efficiency of our operational processes, helping Franchise Partners attract and retain clients in a highly competitive market. This level of support enables me to concentrate on fostering my business community and ensuring my customers are satisfied,” Ruki highlights.

Vipin Mehta, a Franchise Partner for CouriersPlease based in Perth, echoes the sentiment. He underscores how the franchisor’s established reputation has positioned his business for success: “Being a Franchise Partner comes with the recognition and trust that accompany an established brand. I take pride in contributing to the company’s reputation by building strong relationships with local businesses, organizations, and individuals who require courier services. I’ve also extensively utilized the training and support resources provided by the franchisor, equipping me to efficiently manage day-to-day business operations and stay updated on any new developments.”

The allure of venturing into a franchise enterprise remains consistent across various Australian states. South Australia leads the pack with 56% of respondents expressing interest in franchise ownership, followed by Western Australia (54%), New South Wales (52%), Victoria (51%), and Queensland (48%).

CouriersPlease, having a network that spans 95% of the Australian population, is actively encouraging more individuals to consider launching their own parcel delivery business. Richard Thame concludes: “Our Franchise Partner network extends across the length and breadth of Australia, connecting businesses with their customers. Given the consistent sentiment across different states, there is an evident appetite for franchise businesses. CouriersPlease offers both established and growth territories, along with an array of franchise package options, allowing prospective Franchise Partners to choose a model that aligns with their unique needs and aspirations.”

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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