engleski

Social Franchising - Innovative Approach for Solving Social Problems

Ten years after the global financial crisis, which particularly affected the transition countries, Croatia lags in solving basic social problems such as poverty and unemployment. The consequence of the failure of these problems is the population migration, especially the younger groups and ones with high education. Although there are different models of solving social problems, Croatian institution rarely recognize and support them, and it seems that they rarely fully understand their actions. This paper puts a special emphasis on two models: social entrepreneurship and franchising. Social entrepreneurship represents an innovative approach to the use of business principles for solving social problems (not exclusive for profit generation). As a new paradigm in business that emphasizes the mobilization of ideas, capacities and resources for the purpose of sustainable social development, social entrepreneurship is the answer to the needs of society that the competent institution is most often unable to solve due to its bureaucracy, slowness and inflexibility. On the other hand, franchising represents an increasingly popular way to launch new business ventures and/or business expansion. By using a proven business model and a well-known name, it is easier to enter the market and reduce the risk of a possible failure. The main purpose of this paper is to present the model that many countries have recognized as an innovative business concept which is aimed at two sides: the desire to launch a business venture and the ability to make a significant contribution to improving the quality of life in the community. In the first part, the paper gives an insight into the theoretical framework of the concept of social franchise, its characteristics, and the difference in relation to a social enterprise. The second part presents some of the world’s best examples of good social franchise practice and gives an overview of the possibilities of introducing a social franchise into Croatia. Attention will be given to the recommendations and implications for further research due to the author’s conviction that this new social business model has the potential to influence real social values.

franchising, social franchising, social problems

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