Franchise sector in Northern Ireland valued at £400m

Northern Ireland's franchise market is now valued at £400m and could offer the best opportunity for growth and employment through the recession, a local business development agency believes.

Ortus is encouraging entrepreneurs and business owners to consider buying or developing their own business for franchise as a route to self-employment and job creation.

Professor Jackie McCoy, director of the Business Institute at the University of Ulster, said: "For Northern Ireland's economy to move out of recession it is important that both individuals and existing businesses, create and grow new employment opportunities.

"Our private sector economy is already dominated by small and medium-sized enterprises who are experts at innovating and creating new ideas. For those considering starting a business or reassessing their employment opportunities, franchising could offer a safer and more secure route to success."

The Belfast-based Local Enterprise Agency provides training and mentoring to help those interested in tapping into the potential growth sector.

Melanie Fitzpatrick, business services co-ordinator at the organisation said: "Franchising can be an attractive route to self- employment for a new start business, and whilst it is not without risks, it certainly has advantages over setting up a totally new enterprise, as the steep learning curve, which all new businesses go through, does not apply.

"Growing an existing business during a recession can be difficult, with constraints on credit and investment capital.

"Franchising a successful business can be a route to growth without exposure to banking credit or loans."

She added: "Northern Ireland typically has low levels of uptake for franchising, even though there are many opportunities to be exploited."