Using a franchise structure to scale affordable housing internationally
Capital investment as high as US$16 tn is required to address the shortage of adequate and affordable housing worldwide. Market-driven housing approaches that produce quality units, reduce dwelling costs, and provide access to a range of capital sources can help to solve this challenge. This article describes the experience of a social enterprise in Mexico that is taking its proven, market-driven housing solution to countries in Africa using a joint venture franchising company to execute a master franchising strategy. Its experience and the innovative approach it used to scale internationally offer useful insights and lessons for housing practitioners, policymakers, and researchers.Alon, I. (2006) ‘Market conditions favoring master international franchising’, Multinational Business Review 14: 67–82.
Michael, S.C. (2014) ‘Can franchising be an economic development strategy? An empirical investigation’, Journal of Small Business Economics 42: 611–20 <https://doi.org/10.1007/s11187-013-9500-1>.
Rosado-Serrano, A., Paul, P. and Dikova, D. (2018) ‘International franchising: a literature review and research agenda’, Journal of Business Research 85(2018): 238–57 <https://doi.org.10.1108/1525383X200600009>.
Social Enterprise Alliance (no date) ‘What is Social Enterprise?’ [website] <https://socialenterprise.us/about/social-enterprise/> [accessed 7 July 2021].
Starbird, G., Wilson, F. and Hachemi, E.H. (2021) ‘The promise of social sector franchising’, Stanford Social Innovation Review Spring 2021: 42–9.
UN-Habitat (2018) Housing and SDGs in Mexico [online], HS/002/195 <https://unhabitat.org/sites/default/files/documents/2019-05/housing_sdgs_in_mexico.pdf> [accessed 7 July 2021].
Woetzel, J., Ram, S., Mischke, J., Garemo, N. and Sankhe, S. (2014) ‘Tackling the world’s affordable housing challenge’ [online], October 2014, McKinsey Global Institute <https://www.mckinsey.com/featured-insights/urbanization/tackling-the-worlds-affordable-housing-challenge> [accessed 7 July 2021].
World Bank (2016) ‘Infographic: Housing for all by 2030’ [online], May 2016 <https://www.worldbank.org/en/news/infographic/2016/05/13/housing-for-all-by-2030> [accessed 7 July 2021].
Alon, I. (2006) ‘Market conditions favoring master international franchising’, Multinational Business Review 14: 67–82.
Michael, S.C. (2014) ‘Can franchising be an economic development strategy? An empirical investigation’, Journal of Small Business Economics 42: 611–20 <https://doi.org/10.1007/s11187-013-9500-1>.
Rosado-Serrano, A., Paul, P. and Dikova, D. (2018) ‘International franchising: a literature review and research agenda’, Journal of Business Research 85(2018): 238–57 <https://doi.org.10.1108/1525383X200600009>.
Social Enterprise Alliance (no date) ‘What is Social Enterprise?’ [website] <https://socialenterprise.us/about/social-enterprise/> [accessed 7 July 2021].
Starbird, G., Wilson, F. and Hachemi, E.H. (2021) ‘The promise of social sector franchising’, Stanford Social Innovation Review Spring 2021: 42–9.
UN-Habitat (2018) Housing and SDGs in Mexico [online], HS/002/195 <https://unhabitat.org/sites/default/files/documents/2019-05/housing_sdgs_in_mexico.pdf> [accessed 7 July 2021].
Woetzel, J., Ram, S., Mischke, J., Garemo, N. and Sankhe, S. (2014) ‘Tackling the world’s affordable housing challenge’ [online], October 2014, McKinsey Global Institute <https://www.mckinsey.com/featured-insights/urbanization/tackling-the-worlds-affordable-housing-challenge> [accessed 7 July 2021].
World Bank (2016) ‘Infographic: Housing for all by 2030’ [online], May 2016 <https://www.worldbank.org/en/news/infographic/2016/05/13/housing-for-all-by-2030> [accessed 7 July 2021].
Alon, I. (2006) ‘Market conditions favoring master international franchising’, Multinational Business Review 14: 67–82.
Michael, S.C. (2014) ‘Can franchising be an economic development strategy? An empirical investigation’, Journal of Small Business Economics 42: 611–20 <https://doi.org/10.1007/s11187-013-9500-1>.
Rosado-Serrano, A., Paul, P. and Dikova, D. (2018) ‘International franchising: a literature review and research agenda’, Journal of Business Research 85(2018): 238–57 <https://doi.org.10.1108/1525383X200600009>.
Social Enterprise Alliance (no date) ‘What is Social Enterprise?’ [website] <https://socialenterprise.us/about/social-enterprise/> [accessed 7 July 2021].
Starbird, G., Wilson, F. and Hachemi, E.H. (2021) ‘The promise of social sector franchising’, Stanford Social Innovation Review Spring 2021: 42–9.
UN-Habitat (2018) Housing and SDGs in Mexico [online], HS/002/195 <https://unhabitat.org/sites/default/files/documents/2019-05/housing_sdgs_in_mexico.pdf> [accessed 7 July 2021].
Woetzel, J., Ram, S., Mischke, J., Garemo, N. and Sankhe, S. (2014) ‘Tackling the world’s affordable housing challenge’ [online], October 2014, McKinsey Global Institute <https://www.mckinsey.com/featured-insights/urbanization/tackling-the-worlds-affordable-housing-challenge> [accessed 7 July 2021].
World Bank (2016) ‘Infographic: Housing for all by 2030’ [online], May 2016 <https://www.worldbank.org/en/news/infographic/2016/05/13/housing-for-all-by-2030> [accessed 7 July 2021].
Alon, I. (2006) ‘Market conditions favoring master international franchising’, Multinational Business Review 14: 67–82.
Michael, S.C. (2014) ‘Can franchising be an economic development strategy? An empirical investigation’, Journal of Small Business Economics 42: 611–20 <https://doi.org/10.1007/s11187-013-9500-1>.
Rosado-Serrano, A., Paul, P. and Dikova, D. (2018) ‘International franchising: a literature review and research agenda’, Journal of Business Research 85(2018): 238–57 <https://doi.org.10.1108/1525383X200600009>.
Social Enterprise Alliance (no date) ‘What is Social Enterprise?’ [website] <https://socialenterprise.us/about/social-enterprise/> [accessed 7 July 2021].
Starbird, G., Wilson, F. and Hachemi, E.H. (2021) ‘The promise of social sector franchising’, Stanford Social Innovation Review Spring 2021: 42–9.
UN-Habitat (2018) Housing and SDGs in Mexico [online], HS/002/195 <https://unhabitat.org/sites/default/files/documents/2019-05/housing_sdgs_in_mexico.pdf> [accessed 7 July 2021].
Woetzel, J., Ram, S., Mischke, J., Garemo, N. and Sankhe, S. (2014) ‘Tackling the world’s affordable housing challenge’ [online], October 2014, McKinsey Global Institute <https://www.mckinsey.com/featured-insights/urbanization/tackling-the-worlds-affordable-housing-challenge> [accessed 7 July 2021].
World Bank (2016) ‘Infographic: Housing for all by 2030’ [online], May 2016 <https://www.worldbank.org/en/news/infographic/2016/05/13/housing-for-all-by-2030> [accessed 7 July 2021].
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