The government is optimistic of continued franchising industry growth but businesses have to be on their toes, the Trade department said.
“Through innovation and creativity, we are confident … [that we will]see more local franchisers expand across the country’s borders,” Trade Secretary Ramon Lopez said during last week’s 16th Business and Franchise Expo of the Association of Filipino Franchisers Inc. (AFFI)
The franchising industry saw sales growth by 20 percent in 2016, the Trade department said, with the expansion expected to be sustained over the next two years.
Lopez said franchising was a vital tool for economic development and nation-building, particularly since it provides opportunities for micro, small and medium enterprises (MSMEs).
“We are driven to empower local entrepreneurs and we will continue to work to meet the challenges of the market,“ he said.
In addition to large Filipino firms expanding in Southeast Asia, Lopez claimed that household-based micro-enterprises now had the capacity to penetrate regional markets via government programs.
Lpez said that MSMEs were at the “front and center” of the government’s trade agenda, which is tied to the goal of inclusive growth and shared prosperity.
The Philippines, the Trade department said, currently has 1,500 franchises where 65 percent are local brands.
Some 140,000 franchise outlets can be found nationwide and the Philippine franchise sector generates more than a million jobs, it added.