South Africa has a huge unemployment issue, that is growing not shrinking.

The official unemployment figure stands at 32,9% of the population willing and able to work are unemployed we believe unofficially it is a lot higher.

The problem is particularly bad amongst the youth i.e.

  • 15 to 24 years old 63.9% are unemployed and there are 10 000 000 people in the category.  It grows every year as school leavers and even tertiary graduates under this “big black hole”.
  • 25 – 34 years old 42.1% unemployed.

We need to look at various options in the country to reduce the unemployment rate by developing individuals and securing or finding employment solutions.

Graph of The Current Scenario

The following graph illustrates the position we find ourselves in.

Group 1 – Unemployed

This is the biggest group with two problems.

  • It is growing not shrinking.
  • It is mainly made up of young people who will be prone to mischief if left alone all day.

Group 2 – Entrepreneurs

This is a very important group because they have access to capital and knowledge and experience.  Normally we would rely on this group to either grow their existing businesses or start new ones.  Unfortunately, due to the political and economic situation in the country, a large percentage of them want to either emigrate or take their capital offshore.

Group 3 – Employed

This is the group that is lucky enough to be employed.  However, it also comes with problems due to the current economic situation where salary increases are not keeping up with inflation and retrenchments are taking place.

Group 4 – Potential Franchisees

This group is prepared to invest in a franchise and the good news is that they will employ some people out of the “Black Hole”.

People in this group are coming from the employed group mainly i.e.

  • They have recently been retrenched and have a retrenchment package.
  • They have been forced to take early retirement.
  • They are just tired of working for a boss and want to have a new challenge.
  • They are seeking self-employment opportunities to be in charge of their own future

Ultimately franchising can reduce the size of the big unemployment hole.

How Can Franchising Assist to Reduce Unemployment in South Africa?

Franchising can play a significant role in reducing unemployment rates in South Africa by creating job opportunities and promoting entrepreneurship.

There are very viable franchise opportunities available in companies that have withstood the economic downturn and load-shedding.  But it comes with a warning – amongst these viable opportunities are some fly-by-night franchisors that are selling franchises at all costs.

Here are several ways in which franchising can assist to reduce the unemployment rate in South Africa:

  1. Employment Creation: Franchising often involves the establishment of new business outlets or the expansion of existing ones. This expansion leads to the creation of employment opportunities across various sectors. Franchise businesses require staff to operate and manage these outlets, thereby providing employment opportunities to individuals.
  2. Training and Skills Development: Franchisors typically provide comprehensive training programs to franchisees and their employees. This training equips individuals with the necessary skills and knowledge to run a successful franchise business. By offering such training and development opportunities, franchisors contribute to enhancing the employability of individuals, making them more marketable in the job market.
  3. Entrepreneurship and Small Business Ownership: Franchising allows individuals to become entrepreneurs and small business owners with the support and guidance of an established brand. Franchisees benefit from proven business models, marketing strategies, and ongoing support from the franchisor. By facilitating entrepreneurship, franchising enables individuals to create their own employment opportunities and potentially employ others as their business grows.
  4. Access to Financing: Franchisors often have established relationships with financial institutions, making it easier for prospective franchisees to secure funding for their businesses. This access to financing reduces the financial barriers to entry and enables aspiring entrepreneurs to start their own businesses. By providing opportunities for individuals who may not have access to substantial capital, franchising helps in reducing unemployment.
  5. Economic Growth and Development: Franchising contributes to the overall economic growth and development of a country. As more franchise businesses open and expand, they generate revenue, pay taxes, and contribute to the local economy. This growth stimulates economic activity, creates demand for goods and services, and indirectly leads to job creation in various support industries.

It is important to note that while franchising can assist in reducing unemployment rates, it is not the sole solution to the complex issue of unemployment. A comprehensive approach that includes supportive government policies, investment in education and skills development, and a conducive business environment is necessary to address unemployment effectively.

Do You Want to Become a Franchisee?

If you are keen to become a franchisee, we suggest you start by going online to  We also have a kit Franchising 101 which you can use to go about selecting and becoming a franchisee. 

Lastly, you can contact us at  to help you make the right decision.

Franchising Plus