Microfranchises as an innovative approach for empowerment of vulnerable entrepreneurs in post-conflict Colombia

Abstract

This article discusses the potential of microfranchises as an inclusive, scalable, and sustainable business model to help vulnerable groups, such as women, ex-combatants, and indigenous people, overcome poverty and unemployment in Latin America. The authors argue that social entrepreneurship, which focuses on creating social value rather than profit, can play a meaningful role in incorporating the social component of assisting and empowering the poor. However, external and internal barriers to the scalability of business models still remain challenging. The authors suggest that more initiatives should value the bottom of the pyramid (BOP) as entrepreneurs and co-inventors, adapting to each country's conditions while generating economic, social, and environmental benefits. The paper examines microfranchises for vulnerable groups in Latin America and how microfranchises can scale to provide a higher impact on society. The authors argue that microfranchising is aligned with BOP 2.0 and 3.0, which focuses on the co-creation of products and services and the entrepreneurial activity of businesses in the BOP. The article highlights the importance of context in the adaptability of entrepreneurs in BOP 3.0 and the positive correlation between the spatial distribution of the microfranchising and the growth of its network of interest groups in the BOP 3.0.

Sustainability and women entrepreneurship through new business models: the case of microfranchises in post-peace agreement Colombia

“…Although women victims of the conflict (WVC) entrepreneurship, in comparison to men, leans toward necessity entrepreneurship over opportunity-based entrepreneurship, it holds relevance for Latin America (LATAM) in terms of sustainability (Ferro et al , 2019; Pérez-Morón, Thoene and García-Alonso, 2023; Westman et al , 2023), poverty alleviation (Amorós et al , 2021a), fostering entrepreneurial ecosystems (Auerswald and Dani, 2017; de Bruin et al , 2023) and enhancing competitiveness (Amorós et al , 2021b; Jardon and Martinez–Cobas, 2020). Despite its significance, this aspect remains relatively under-researched and under-theorized in LATAM (Ibáñez, 2022).…”