Youth unemployment has reached crisis proportions in South Africa with recent estimates from Stats SA indicating that 55.2% of young people between the ages of 15 and 24 are jobless. (Source) In numerical terms this translates into more than 4 million young people who are not working which is highest unemployment rate in the world. Young people who have finished high school and university graduates also experience extremely high unemployment levels.
Our aim is to create transformation, and to improve the quality of work and drive through growth and entrepreneurial development. Mila Services plans to disrupt the status quo by transforming cleaners into business owners giving them the opportunity grow within the industry. Creating job opportunities for and a growth career path from cleaner to business owner through Tandem Franchising.
TANDEM FRANCHISING
“Tandem franchising, an innovative franchise model unique to South Africa, is offering franchisors the opportunity to grow their brand, retain initial majority control of the new franchise and shares in its profits, all while working to empower communities in need of economic development.”
Africa Alert, Author(s): Kendal H. Tyre
Most companies have used franchising to expand their network as well as giving cleaners an incentive to own and run their own businesses. This presents an ideal BEE initiative in South Africa. Mila has implemented this system.
The high investment needed to set up a new company within the cleaning and soft services industry as well as the level of expertise required to manage them successfully combine to inhibit some companies’ ability to expand through franchising.
For very much the same reasons, it also precludes otherwise suitable individuals from becoming franchisees.
The Tandem Franchising model addresses these and other problems in a commercially sound and sustainable manner.
TANDEM FRANCHISING MODEL?
Tandem Franchising is a standard business format franchise model but with an added focus on mentoring, support, and long-term cooperation. It is Empowerment through ownership/partnerships.
The model is ideally suited to BEE initiatives because it enables members of previously disadvantaged population groups to enter the mainstream economy at an accelerated pace yet at significantly reduced risk. The focus is on sustainability, accountability and transformation.
This alternative business model is designed to allow the business owner / franchisee in tandem with the franchisor to take full ownership and responsibility of the business. The franchisee focusses on client relationships and the daily operational requirements, whilst enjoying full administrative support, including all governance, financial, compliance and human resource services.
TYPES OF MILA-PRENEURS
Investment
Cleaner – Owner
Traditional Franchising
Tandem Franchising is an effective management tool that assists in increased onsite quality, relationships, logistics and aids in the disruption of the poverty cycle. Because the Franchise Owner may not have access to capital, grant funding will assist Mila in incubating these businesses and ultimately growing sustainable businesses.
