Automotive parks for micro-franchises way of future says AIDC
Following analysis of the informal automotive sector, the AIDC is lobbying for the establishment of automotive parks for SMMEs based on a model of micro-franchising.
Grant Minnie, Supply Chain Development Senior Project Manager of the AIDC, who completed unique research into the informal automotive sector, maintains that cities would promote new business opportunities by implementing such a business zone, mainly for the aftermarket, and build a bridge between the formal and informal sectors of the economy.
"The parks would contain business operating in windscreen repair, body repair, seat repair, tyre services, vehicle parts and valet services among others that would be supported by formal supply chain ensuring that supplies were sourced from established entities and brands," Minnie said.
The establishment of such parks, which would service ready markets, would be preceded by the identification, evaluation, training, resourcing and marketing of eligible, small operators in the informal sector.
AIDC Supply Chain Development manager, Lance Schultz said the key lacking elements to success for most micro businesses was limited infrastructure, limited fixed capacity, limited innovation and access to finance and markets. The formation of automotive business parks containing micro-franchises would provide the support lacking to entrepreneurs with drive and aptitude.
The findings of the AIDC around micro franchising in the context of an automotive park was well received by the Nelson Mandela bay Municipality which has called for further investigation into ways in which the specific challenges of the informal automotive sector could be met.
The AIDC Eastern Cape is mandated by the ECDC to assist the automotive sector grow and become more globally competitive.
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