SPEECHES

Consul General Brian L. Browne

Keynote Address

CTO2006 Seminar

THEME: "Leveraging Franchising for Business Growth and National Development"

10:00am, Monday, May 15, 2006
MUSON Center Lagos, 8/9 Marina Street, Lagos

• Mr. Chairman
• Ladies and gentlemen

It is indeed my pleasure to be here this morning for what promises to be an exciting and fruitful day. The CTO seminar series has become a veritable platform to feel the pulse of the local technology market, to define industry directions and to make informed recommendations to both policy formulators and the executives who implement are entrusted with their implementation. I must express my pleasant surprise that CTO2006's theme: "Leveraging Franchising For Business Growth and National Development", is fortuitous. Let me elaborate. Our Commercial Service informed me that CTO2006 promotion began in the fall of last year following its normal practice. It means, therefore, that the Commercial Service had chosen the event theme long before the Central Bank of Nigeria concluded successfully the first phase of the banking reform in December 2005 and the subsequent announcement of the micro-finance policy guideline in February this year. Given their popularity, locally and globally, the micro finance policy together with the Small-Medium Industry Equity Investment Scheme (SMIEIS) and the National Economic Empowerment Development Strategy (NEEDS) seem to be appropriate elements to frame Nigeria's strategy for private sector participation in national development.

For more than a century, franchising has helped American firms and entrepreneurs give meaning to the fundamental principles and mechanisms of market economy. As we often say when we interact with policy makers and leaders in emerging economies such as Nigeria, a market economy may be practical but its survival and success depend upon the fundamental principles of individual freedom. Consequently, we can never become tired or grow weary of reminding our friends and foes alike, how important consumers value the freedom to choose among competing goods and services. Yes, we will not relent interest in how entrepreneurs cherish the freedom to start or expand an enterprise and share its risks and rewards. Above all, we will not discount the freedom commercial and industrial workers hinge their hope upon when deciding on position contracts. These freedoms, especially the power to choose your lifestyle, is the hall mark of franchising and distinguishes it from other models of business Management and development.

Two years ago, the International Franchise Association (IFA) published the results of a survey conducted at its instance by Price Water House. The publication showed the economic impact of franchising using information and data generated from economic activities in 2003 from 767,483 franchise businesses found in about 75 industry sectors across all America. Let me give you a quick review. According to the report, franchising gives jobs to over 18.121 million people, generates well over $1.53 trillion dollars in sales revenue, accounts for about 10 percent of total private sector output in America. That is not all. It may surprise you to hear that franchising accounts for more than 35 percent of all retail sales in the United States and creates more jobs than information technology, financial services and construction industries combined. That is awesome and significant franchising is to our economy and nation.

This morning, I will not bore you with the history of franchising, its legalities and operations. I am sure you will have enough of those details and more from the array of experts already assembled to discuss different aspects of this phenomenal business model. It is sufficient for me to encourage you to pay a careful attention to the core elements that determine the success or otherwise of franchising especially as a vehicle for promoting micro, small and medium enterprises.

Finally, let me thank our Commercial Service led by Commercial Officer JoAnna McInerney for putting together this seminar to mark the beginning of CTO2006. I must commend her team for identifying and convincing particularly those of you - our resource persons who have come from outside Nigeria to grace this annual trade event. I very sincerely hope that this seminar will not just be a historic mile stone on paper but also, the beginning of an affirmative action on ground for micro, small and medium enterprise development in Nigeria. I call on all of you here present and all the other stakeholders - government, civil society, multinational and multi-lateral agencies, and the broader local private sector to join us in making American franchise concepts and systems a native of Nigeria for the West African market.

Thank you for listing to me. On this note, may I ask for your support to declare CTO2006 all-day seminar open.

 

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