Improving Small Business Survival Rates via Franchising The Role of the Banks in Europe

Abstract

PETER STERN IS SENIOR FRANCHISE manager of the National Westminster Bank and has a background in small business lending. The unit in which he works pioneered franchisee lending in Britain. Professor John Stanworth is Director of the International Franchise Research Centre at the University of Westminster, England and has been involved in research into franchising since 1975. The paper examines issues such as the early origins of franchising and different manifestations of the concept. Some international statistics are presented and certain problems of measurement illustrated. Finally, a survey of specialist bank provision for franchising in Europe shows only British and Dutch banks as giving full support with French banks also displaying a good level of franchise knowledge. The article concludes that the banking sectors of both Western and Eastern Europe have much left to do if they are to assist the development of franchising to its full potential.