Franchise Business Empower Informal Workers Sector in Indonesia
Vera Bararah Barid
Indonesian Institute of Sciences
Abstract
The development of Franchise business in Indonesia have positive impacts, especially followed by many employment opportunities. Although economic growth tends slowly, as well as fluctuations exchange rate, but it does not have an impact for franchise business because this business can continue until now and encourage informal workers and franchisee to improve their life. The growth of franchise business averages 12-16 percent per year and foreign franchise dominates in Indonesia. Many types of franchise in Indonesia ranging from small to large capital, but the small franchise which can absorb more informal workers than the big one. This franchise business is expected to increase human capital productivity both formal workers and informal workers, whereas the number of unemployed growing gradually. This article uses descriptive analysis methods with secondary data which see further the impact of development franchise in the absorption of informal workers. The result is franchise business give the good impacts especially for informal workers in Indonesia and it can help them to survive their life.
Keywords: Franchise, Empower, Informal Workers
Topic: Human Capital Development Strategies