Microfranchising

I recently read an article on “Microfranchising” in the editorial section of the ‘Economic Times’.

We have all heard of the Grameen Bank in Bangladesh which is run entirely by women and Mr. Mohammad Younis came up with this concept. But, what many people don’t know is that a company called ‘Tenron’ which is based in Oslo has 62% stake in this bank. And the women who run this bank are all from the poor rural areas. This is what Microfranchising is all about, connecting giant multinational corporations with the poor people of the world.

In Uttar Pradesh and Madhya Pradesh and some other states, marriages happen at a very young age, at about 15 or 17. Marriages in this age group are a frequently occurring phenomena there, looking at this situation a company manufacturing camera’s came up with the same idea (AsTenron), they visited these villages and appointed some poor people as their agents, gave them the cameras and worked out a revenue model, wherein the agents will earn some money by clicking photographs at marriage functions and the company will do some business. Another great incentive for companies to do this is this is the kind of publicity they get. You can just imagine people at the marriage getting fascinated and coming up and having a look at the camera and asking questions about it!! After this Sony went one step ahead and decided to give Handy cams to the people as well as camera’s and give the option of video recording.

So to conclude Microfranchising does 3 good things: 1. creates employment opportunities among have-nots 2. Companies get publicity.3 Companies can reach out to poor people and at the same time do business.

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One comment on “Microfranchising

  1. 1355 says:

    I Think the concept of MICROFRANCHISING is good and productive for some company as well as for the jobless people. But i want to include one more thing with this i.e. since these areas are mainly comprised of poor people who are either jobless or hard working (not earning enough money), they should be educated more and should open their minds i.e. their thinking should be changed and made more wider. Since marriages take place very early (15 or 17) i think the law of MARRIAGEABLE age for BOYS AND GIRLS is 21 and 18 respectively. Don’t we think that the law is being violated. By this i don’t mean that the person doing this should be put in jail. But i think that EARLY MARRIAGE can be one of the reasons of peole being poor. We all know the effects of an early marriage. What i eventually mean to say that DEVELOPMENT along with MICROFRANCHISING in the backward areas of the states might atleast take them above the present situation.

    What i want to see is that MICROFRANCHISING should be looked not only from the point of view of a company making monetary gains but also the people and the state benefiting from it thus SHARING THE FRUITS OF SUCCESS.

    MICROFRANCHISING is a good concept connecting people and the gaint Multinational Corporations, but one thing i doubt that is EXPLOITATION OF THE PEOPLE by the MNC’s just like the ADIVASI people being exploited by the urban businessmen i.e. making them work but not giving them returns.

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