ABSTRACT
In this chapter, the author seeks to provide an understanding of the uniqueness and challenges at the base of the pyramid (BoP), the economic stratum that microfranchises operate at. He starts by looking at key reasons for franchise success and failure in developed countries. The author analyses the nature of the BoP and how businesses can operate there. He attempts to marry the insights gained from traditional franchising, microfranchising and nature of business at the BoP to understand the key factors required to build and grow a microfranchise business. The author describes the challenges of scaling a business through microfranchising and develops a strategy to establish a viable pilot microfranchise business. He also describes the strategies for overcoming financial and internal resource constraints for replication and growth. The challenge is to find a financial structure that reinforces the organisation's mission, uses scarce resources efficiently, is responsive to changes and is achievable.
