Are you looking for an opportunity to start your own business? Do you think you have the passion and skills to run a successful business? The booming franchise business in the Eastern Cape maybe the opportunity you have been waiting for.

According to development financier, the Eastern Cape Development Corporation (ECDC), the franchise business in the province is growing and is profitable. Over the last three years the financier has funded more than 30 start-up franchise businesses in the province to the tune of over R50 million.

ECDC says the bulk of these franchises are in the former Transkei because of increased economic activity in the region.

"Most of the applications for start-up franchise businesses are from the former Transkei. Most private lending institutions are reluctant to finance businesses in this area. This may be a lost opportunity because almost all of those franchises we have financed are resilient and profitable.

"There is significant buying power in the rural areas, and the majority of residents spend money on consumable goods," says ECDC manager for long-term loans Alfred Mamafha.

Mamafha says funding for franchise businesses typically ranges from R500, 000 to about R5 million.

"All the franchises we have funded have been diligent in repaying their loans. It is easier to do business with a franchisee because they have franchisor support. The strong performance of franchises makes it compelling to fund these businesses," Mamafha explains.

ECDC funded BP owners on expansion drive

One franchise that is reaping the rewards are the owners of a BP service station in Mthatha. Steve Rusteberg and John Kunaka worked at the garage for 19 years as general manager and administration manager respectively before they took over from the owners, the Transkei Development Corporation (TDC) in 1997.

"We received finance from ECDC on two occassions. The first was R600 000 was used for working capital when we took over the garage. In 2009 we took another loan from the financier of R300 000 to buy stock which we are repaying.

"Business is going well and we have applied for an additional R3, 9 million from ECDC to fund our expansion. Our services include a garage, a Nissan service and parts operation which we to develop into a full Nissan franchise. We have moved our workshop and spares division to bigger premises in Nelson Mandela Drive, the main feeder road in Mthatha. We are also developing a convenient store at the garage," says Kunaka.

The duo, which employs 44 people, says they also have a contract to repair government vehicles throughout the former Transkei. Other clients include Eskom and Telkom.  

Mamafha says popular franchises funded by ECDC include Sasol, Steers, Nandos, Caltex, Shell garages as well as Spar stores. ECDC has also funded three profitable Debonairs franchises in Mthatha.

"ECDC only funds franchises listed with the franchise association," Mamafha says.

Are you looking for an opportunity to start your own business? Do you think you have the passion and skills to run a successful business? The booming franchise business in the Eastern Cape maybe the opportunity you have been waiting for.

According to development financier, the Eastern Cape Development Corporation (ECDC), the franchise business in the province is growing and is profitable. Over the last three years the financier has funded more than 30 start-up franchise businesses in the province to the tune of over R50 million.

ECDC says the bulk of these franchises are in the former Transkei because of increased economic activity in the region.

"Most of the applications for start-up franchise businesses are from the former Transkei. Most private lending institutions are reluctant to finance businesses in this area. This may be a lost opportunity because almost all of those franchises we have financed are resilient and profitable.

"There is significant buying power in the rural areas, and the majority of residents spend money on consumable goods," says ECDC manager for long-term loans Alfred Mamafha.

Mamafha says funding for franchise businesses typically ranges from R500, 000 to about R5 million.

"All the franchises we have funded have been diligent in repaying their loans. It is easier to do business with a franchisee because they have franchisor support. The strong performance of franchises makes it compelling to fund these businesses," Mamafha explains.

ECDC funded BP owners on expansion drive

One franchise that is reaping the rewards are the owners of a BP service station in Mthatha. Steve Rusteberg and John Kunaka worked at the garage for 19 years as general manager and administration manager respectively before they took over from the owners, the Transkei Development Corporation (TDC) in 1997.

"We received finance from ECDC on two occassions. The first was R600 000 was used for working capital when we took over the garage. In 2009 we took another loan from the financier of R300 000 to buy stock which we are repaying.

"Business is going well and we have applied for an additional R3, 9 million from ECDC to fund our expansion. Our services include a garage, a Nissan service and parts operation which we to develop into a full Nissan franchise. We have moved our workshop and spares division to bigger premises in Nelson Mandela Drive, the main feeder road in Mthatha. We are also developing a convenient store at the garage," says Kunaka.

The duo, which employs 44 people, says they also have a contract to repair government vehicles throughout the former Transkei. Other clients include Eskom and Telkom.  

Mamafha says popular franchises funded by ECDC include Sasol, Steers, Nandos, Caltex, Shell garages as well as Spar stores. ECDC has also funded three profitable Debonairs franchises in Mthatha.

"ECDC only funds franchises listed with the franchise association," Mamafha says.