Incentives for growth in franchising in northwest Mexico

Abstract

The franchise performance is usually approached form the commercial management perspective; nevertheless the interdisciplinary contribution to economic development research and its implications in the management have been scarcely attended. Mexico presents a paradox: as the franchises commercialization is constantly incising the number of brands due to the entrepreneurs incursion, the total of these establishments is growing inversely. To determine the factors favoring the entrepreneur incursion in franchising activity and the growth expectations is the aim of this study in the north east region of the country due to its differentiated conditions. The research is exploratory and explicative using a structural equations model as analysis technique whose results suggest company features and the individual characteristics as determinants of the new business units expectations. Young businessmen with more of an entrepreneur profile than a franchises investor are evidenced concluding that the size of the franchise and the business incentives define the growing tendency by the opening of new establishments.