Franchising for Business Development

Europe and Eurasia
Country / Countries: 
Kazakhstan & Kyrgyzstan
Project Status: 

Drawing from the experience elsewhere in the NIS, IDG introduced franchising as a business development strategy for investors and entrepreneurs, financial institutions, and the government. The purpose of the project was to test the concept of franchising in Kazakhstan and Kyrgyzstan by developing pilot enterprises. The goal was to produce viable, replicable franchise businesses that are indigenous to the respective countries. In the process of enterprise development, IDG built consulting capacity in the Kazak business community. This support and consulting extended from overall management and business techniques to actual operations procedural development.

The latter part of the project concentrated in formulating the Franchise Packages into applicable modules to enhance the implementation process. Legal reviews of the environment as well as a financial sector analysis were also completed and included surveys of commercial bank and lease financing mechanisms. In addition, the IDG team conducted educational workshops, created operational, financial, and accounting procedures, and distributed an SME Handbook with guidance on equipment financing, business planning, and licensing and regulatory requirements.