In our current climate, it is more important than ever that as businesses and brands, we support each other to boost the UK economy. Shuttercraft is proud to support HSBC with their recent initiative to aid the growth of British businesses, including the franchise industry. Franchising is a low-risk business model that allows people to invest in their own business, while benefiting from the support and recognition of being part of an existing brand. Here at Shuttercraft, we are excited to partner with HSBC to encourage new and exciting opportunities within the franchise industry.
HSBC UK has launched their first-ever £500 million fund for franchise businesses. The fund is set up as a commitment from HSBC to help British businesses innovate and grow as the country builds to rebound from the Covid-19 health crisis. The fund is part of a broader £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK. It is an incredible opportunity for UK businesses and entrepreneurs to take advantage of, to be part of the growth and development of British businesses.
Opportunities that Lie Ahead
Franchising numbers are at a record high in the UK, driven by the rise in younger people with the ambition to run their own businesses, and by existing franchisees expanding across sectors, from major food brands and coffee bars, healthcare and phone shops. Being able to invest in an established brand and receive a great amount of support, franchising is quickly becoming the popular choice for those looking to invest in their own business. This is proven in franchising recently hitting record numbers, employing over 700,000 people and contributing an estimated £17bn to the UK economy, according to the British Franchise Association (bfa).
Despite recent global challenges and the difficult economic environment, 62% of UK businesses intend to increase investment in their business in the next year, according to research from HSBC, with the focus on four fundamental areas of their business in 2021; employee well-being, customer experience, cash flow/capital management and security. This highlights the opportunities that lie ahead for anyone looking to invest in franchising.
Setting up a Business in a Challenging Economic Environment
People may question whether setting up a business is the right thing to do during the challenging economic environment, however with franchising, there is significantly less risk than for a start-up. Additionally, with UK businesses looking at how they can expand, franchising is the third option to consider alongside organic growth and acquisition. While it requires investment in training and supporting franchisees, it is capital-efficient and lower-risk compared to other methods. For franchisees, the model offers a more accessible way of starting a business, using a tried and tested concept.
Andy Brattesani, Head of Franchise, HSBC UK said: “2020 was a difficult year for businesses, with almost every sector impacted. Franchising is a great route towards expansion for an established, successful business looking to grow. Franchising hasn’t got the exposure it deserves, opportunities in franchising are varied. Our £500 million fund will help businesses to develop, grow and drive investment.Posted On 2021-04-22