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Why This Business Model Is Opening the Door to Entrepreneurship for People With Almost No Capital

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Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways Micro-franchising lowers capital, risk and skill barriers, turning proven brands into accessible paths to ownership.

Collaborative and micro-franchise models expand entrepreneurship, create jobs and strengthen local economies sustainably.

It’s a tale as old as time: the rich keep getting richer while the poor struggle to break free from financial hardship. For many, the cycle of poverty feels impossible to escape, with debts passing from one generation to the next. Traditional entrepreneurship can be a way out, but launching a business requires capital, experience and market trust — resources that many struggling individuals simply don’t have.

One possible solution? Micro-franchising and collaborative franchises — business models designed to help individuals with limited resources become business owners. While traditional franchises often require hefty investments, micro-franchises provide a more accessible, cost-effective alternative, helping more people take control of their financial future.

Related: Big Things Come in Small Packages – The Value of Micro-Franchise Brands

Why franchises are more successful than independent retail shops

Franchises offer a major advantage over independently owned retail shops: they leverage an established brand and business model. In a world where consumers trust familiarity, this brand recognition makes it significantly easier to attract customers and drive sales.

Consider this: when given the choice between an unknown local store and a well-known brand, most people will opt for the brand they recognize. This is because a trusted brand comes with:

A proven track record of service and quality.

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