Mid-West region sees 20 SMEs established with the potential for 50 jobs as Europe’s first franchise centre opens in Limerick
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| LIT and Limerick Chamber expects centre to create of 500 jobs over the next five years |
Limerick, 11 am, Tuesday, June 7th, 2011: Limerick Institute of Technology (LIT) and Limerick Chamber of Commerce, has today announced the creation of 20 new SMEs with the launch of Europe’s first third-level franchising centre. The National Franchise Centre (NFC), based at O’Connell Street, Limerick, expects to create up to 150 start-ups and 500 jobs over the next five years.
The official opening of the NFC by Minister of State at the Department of Foreign Affairs & Trade with responsibility for Trade & Development Jan O’Sullivan marks the graduation of the first franchisees to undertake the six month Franchise Acceleration Start-up Training (FAST) programme in Franchising and Retail Management at the centre, which commenced operations in January of this year.
In all, 20 student franchisees undertook the first programme in January and nine of these will enter into direct employment with their own franchise business with immediate effect. The remaining eleven will have their franchise operations established within three months. Total employment created by the first graduates of the programme is expected to reach 50 jobs over the next three years.
Some 11 of the initial 20 franchisees are former Dell employees who were made redundant in 2009 and secured funding for undertaking the NFC programme through the European Globalisation Fund (EGF).
Speaking at the launch, LIT President Dr. Maria Hinfelaar said that the National Franchise Centre is an example of the impact that third level institutions and the business community can make in regenerating the Irish economy. “The National Franchise Centre is testimony to what can be achieved with third level education and business coming together. The NFC was born out of Limerick Institute of Technology and Limerick Chamber putting their minds together to come up with a response to the disproportionate level of unemployment experienced in this city and region.
“In these difficult times it is essential that partnerships such as this between third level education and the business sector are formed so that we can use our collective strengths to come up with innovations like the National Franchise Centre. The NFC is encouraging entrepreneurship among unemployed people who otherwise would not dare to start up businesses on their own. And the good news is that this success can also be replicated elsewhere in the country.”
Said Limerick Chamber President Kieran MacSweeney: “We are extremely proud of what has been achieved here in such a short space of time. We only came together with Limerick Institute of Technology to come up with a response to our unemployment issues in September of last year. Here we are, just nine months later, enabling the creation of 20 new businesses and up to 50 jobs as well as creating a first for third level education in Europe with the National Franchise Centre. We estimate that even in these difficult times, every six month FAST programme taking on 15 applicants has the capacity to create up to 50 jobs over a three year period. Within five years of commencing operations, we believe that the NFC will be responsible for up to 150 start-ups and up to 500 jobs.
“The reason we arrived at this franchise enterprise development and training concept was because the statistics clearly show the huge opportunity that franchising is. The fact is that 80% of start-up companies fail in the first five years whereas 80% of franchises succeed in the first five years. Another telling statistic is that, because of the success rate of franchises, banks provide a higher level of funding for them because of the lower risk, which is the exception rather than the norm today. In Ireland franchises have, on average, eight employees so based on this, our estimates in terms of job creation may be quite conservative.”
Launching the National Franchise Centre, Minister of State for Trade and Development Jan O’Sullivan TD said: “My role as Minister for Trade is to help to develop markets for Irish produced goods and services so that extra jobs are created at home. Getting people back to work is the most effective way to solve our serious economic problems. I would like to congratulate all of you here today for making a real contribution to this national effort.
“I would particularly like to congratulate the 20 participants we have here with us today. Not only have you taken the steps to take yourselves out of unemployment, you have chosen to do it in a way which will provide a path out of unemployment for others too, as you create jobs in the Limerick area.
“As well the graduates, I would like to also to acknowledge Limerick Institute of Technology and the Limerick Chamber of Commerce, whose vision it was to set up this programme.”
Notes to the Editor
The National Franchise Centre is modelled on the existing and highly successful Limerick Enterprise Acceleration Programme (LEAP) run in Limerick Institute of Technology’s Enterprise Acceleration centre.
The FAST programme validates, through psychometric testing, the skill-sets of trainees for their desired franchise and also provides access to seed capital and finance for the franchise. It also provides mentoring for the trainees, during and after the programme, from successfully established franchises throughout.
The five month programme provides a comprehensive and inclusive business enterprise training covering all aspects of running or working in a successful franchise business. It also offers Retail Management support for persons interested in start-ups in this sector.
Specifically, the training programme provides the following:
· All elements of Business Planning
· Administration training
· Marketing
· Customer and staff relations skills
· Feasibility studies
· Aligning of skill sets with suitable franchises
· Finance
· Product pricing and gross margin identification
· Classroom franchise simulation
· Outsourcing to achieve cost efficiencies
· Time management
· Presentation training
The second FAST programme at the National Franchise Centre is open for applications. Further detail will be made available over the coming weeks on the LIT website www.lit.ie
For further information, contact:
Eugene Hogan
Account Director
Financial Dynamics
10 Merrion Square
Dublin, 2
D +353 (0)61 372643
M +353 (0)87 2497290
www.fd.com |
