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DEVELOPMENT STRATEGIESUSAID Loan Guarantee Fund Sibley International devised and structured a $30 million franchise loan guarantee fund for USAID. The fund was established to facilitate financing US franchises for export to the developing world and is currently used throughout the developing world. Through a contract with Ernst & Young and USAID, Sibley International developed and analyzed various configurations of a franchise facility for the purpose of an initial pilot project and a long-term facility. The result was a pilot program, designed and structured by Sibley that created a franchise loan guarantee fund for USAID. The fund established a mechanism for financing the purchase of US franchises by individuals and companies within USAID assisted countries. Specifically, the program provided direct loans and loan guarantees to International Master Licensors and franchisees to purchase US franchises. In addition, the program provided grants to US franchisors for training and support services to IMLs and franchisees. Rural Telecommunications Distribution Study Sibley International, in cooperation with Intelecon Research, completed a comprehensive project to design innovative strategies to deliver phone services to widely dispersed rural communities and create small business opportunities for entrepreneurs in these areas. The Rural Satellite Telecommunications and Distribution Study was for a major international telecommunications client planning to enter 15 emerging markets over two years. The project objectives were to analyze foreseeable roll-out methodologies for rural and remote telecommunications services, as well as to conduct a financial/commercial (business case) analysis, including each user group addressed, from which to make an informed, financially-based decision regarding which rural/remote roll-out scheme was best suited for the client's semi-fixed market The business case analysis helped to guide the client's investments, and also examined the viability of a franchise or licensed-based distribution network involving a large number of locally-owned small businesses. Studies were conducted for large, diverse markets in Brazil and Russia. Franchising for Privatization Under a USAID Program Sibley introduced franchising as a business development strategy for investors and entrepreneurs, financial institutions, and the government. These pilots introduced franchising and other licensed distribution strategies to Russia as a means to create large numbers of small-scale, start-up enterprises that mobilize primarily Russian capital and can expand in the absence of large-scale foreign investment. The program trained Russian investors and entrepreneurs, financial institutions and government representatives. Sibley estimates that the number of franchised businesses in Russia grew from 70 in 1994 to over 600 in 1997, representing nearly 200 percent annual growth. The Sibley Team also organized workshops and seminars in 10 cities throughout Russia. Franchise Finance Sibley, in collaboration with NatWest Bank, designed and implemented a training program for bankers in Russia. The goal of the program was to assist Russian banks in better understanding financing options for small businesses, in particular financing for franchises. Bankers learned how to develop a department and product specifically to be able offer finance to franchise operators. |
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