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RUSSIA AND EASTERN EUROPERussia Under a USAID Program Sibley introduced franchising as a business development strategy for Russian 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. Russia In order to promote the continuation of the franchising initiative, in 1997 Sibley assisted in the formation of the Russian Franchise Association (RFA). Sibley experts trained a full-time executive director, created investment promotion and educational programs, and established a resource center with technical and reference materials for the franchisee and potential Russian and foreign investors. The Sibley Team succeeded in fostering a consensus among a diverse pool of international and Russian-based franchise companies, including AlphaGraphics, McDonalds, Baskin Robbins, Dunkin Donuts, Mother Care, Coca-Cola, PepsiCo, and Rostik Chicken. The RFA, now more than five years old, it is the largest franchise association in Eurasia and provides a full range of training, investment promotion, and advocacy services. Russia 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. Russia Sibley International, in cooperation with ICO, 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. Ukraine In this innovative SME creation program, Sibley applied international franchising and licensing methodologies that enabled pilot firms to rapidly expand distribution networks and restructure their financial control, operations, management training, and marketing systems. These pilots demonstrated that working through a structured distribution system, business skills can be transferred and SME growth enhanced using commercially viable distribution strategies. After assessing the small business environment in Ukraine, Sibley International targeted 21 pilot enterprises. The enterprises were also supported by workshops and an improved legal and regulatory framework. |
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