Business Excellence, Vol. 17 No. 2, 2023.
Professional paper
https://doi.org/10.22598/pi-be/2023.17.2.101
THE SIGNIFICANCE OF CROATIAN CHAMBER OF ECONOMY IN THE PROMOTION OF THE FRANCHISE BUSINESS MODEL AS AN INITIATOR OF THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTREPRENEURSHIP
Ante Rončević
orcid.org/0000-0003-2527-9506
; Odjel za ekonomiju, Sveučilišni centar Varaždin, Sveučilište Sjever, Jurja Križanića 31b, 42000 Varaždin, Hrvatska
Tihana Buić
; Sveučilišni centar Varaždin, Sveučilište Sjever, Jurja Križanića 31b, 42000 Varaždin, Hrvatska
Abstract
The development of the global economy proves that any successful business
model can be franchised and that franchising is applicable in an extremely wide range of
activities. In the Republic of Croatia, such a business model is still not sufficiently
represented. The franchise industry is ideal precisely for small entrepreneurs who do not
have the possibility of expansion through their own branches, but they also do not have
the local expertise of distant markets, which is important for success in unfamiliar
territory. Through the franchise business model, small and medium-sized entrepreneurs
can realize their growth and expansion into the international market and secure new
employment. Through franchises, domestic successful concepts export their know-how
and products, and therefore it is important to increase the share of domestic franchises.
The paper defines the concept of franchise, the ways of its acquisition, the legal
framework in which the franchise operates and what is needed for successful franchise.
Furthermore, the paper investigated the influence of Croatian Chamber of Economy on
the promotion of the franchise business concept. The Croatian Chamber of Economy
Franchise Business Association gathers leading domestic franchisors, creates a
stimulating environment for the development of entrepreneurship and, through the
organization of continuous education, promotes the franchise business model among
Croatian companies in order to increase the share of domestic franchise systems in
Croatia. The main problem of the Community is to determine who the franchisors actually
are and how many of them there are. The introduction of the franchise register and the
detection of legal entities and the organization of continuous education through the
promotion of the franchise business model among Croatian companies would increase
the share of domestic franchise systems in Croatia. Each sold franchise means the
opening of a new company, self-employment and employment, and that is why franchise
business is considered a flywheel for the development of entrepreneurship and
employment.
Keywords
franchise; entrepreneurship; business model; Croatian Chamber of Economy.
Hrčak ID:
311100
URI
Publication date:
11.12.2023.
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