Saudi youth urged to consider franchising as serious option

This file photo shows Saudis attending a forum of small enterprises owners in Al-Qassim. (SPA)
Updated 19 February 2018
0

Saudi youth urged to consider franchising as serious option

RIYADH: Young entrepreneurs intending to set up small and medium enterprises (SMEs) should go into franchising, the Riyadh Chamber of Commerce and Industry (RCCI) advised recently.
Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).
Mohamed Almajaal, a member of RCCI’s board of trustees, said that SMEs contribute about 21 percent to the Kingdom’s gross domestic product and constitute about 53 percent of the manpower in the labor market.
However, he said that studies indicate that the survival rate among SMEs is 67 percent for the first three years and 94 percent among those who went into franchising.
Talking to Arab News, Almajaal said: “If they have a good or special idea which they believe in, they could compete. But they must go into franchising, which is a practical tool to expand.”
However, he added that the franchisee should know the franchising system and should not embark on business without knowing about it 90-100 percent.
“He should know the core of the franchising business. He should know the problems to be encountered and how to solve these,” he said.
Almajaal said young entrepreneurs may face initial challenges in marketing and accounting but the franchisor provides the system.


Security officer, suspect killed in drugs bust gun fight

Updated 10 min 9 sec ago
0

Security officer, suspect killed in drugs bust gun fight

  • Two people were killed in the shoot out and another injured
  • Four Ethiopians were also arrested following a chase

DUBAI: A security officer was killed in a gun fight on Tuesday that broke out during a drugs and alcohol raid in Saudi Arabia, state news agency SPA reported.

Security forces were searching a property in the Asir area during the night when a group of men opened fire.

A gun fight broke out during which one of the security forces and one of the suspects – an Ethiopian man - were killed, and a Saudi national was also injured.

The officer killed was later identified as Captain Abdullah Asiri.

Security officers also arrested four other Ethiopians after a chase in the mountainous region.