Economists agree that in the last ten to fifteen years there has been a general “flattening” of the world’s economy. This flattening means that there is more communication and exchange of information between people around the world than ever before. In many ways this is a great thing. The sharing of information such as science, technology, and medicine, are mutually beneficial to everyone on the planet. At the same time, it has completely changed our societies on many levels. First, the availability of information and ways in which we talk with one another have changed drastically. With the invention of smart phones, the internet, and social media, individuals are plugged in to the world wide web, as well as one another, almost constantly. This revolution in the way we communicate has also affected business on a global scale. It is now easier than ever for businesses to establish new branches or extend their operations in foreign countries. That is why there has been a marked increase in the number of international businesses in our global economy.
Dr. Maurice Antoine Roussety (on Vimeo) is an expert in the areas of marketing, finance, franchising, and globalization. As both an accomplished business professional and academic, he has spent decades studying the global economy and trying to understand the ways in which the rise of the digital era has had trickle down effects on the rest of the world’s economies. One of the biggest shifts that he has seen in recent years has to do with the types of business opportunities that individuals are searching out and taking advantage of. While the 90s saw a huge increase in the number of start-ups globally, particularly in the technology industries, this boom has tapered off in the last five years. This is due in large part to the highly specialized, not to mention highly developed, global market that has emerged because of the technology boom.
Therefore, with such a saturated start up market, new business prospects have come to dominate the global economy, specifically franchising. Although franchising is not a new concept, it has found new ground in our post digital era economy because the concept allows newly established franchising to piggyback off the goodwill of their parent company. This goodwill, or reputation, is invaluable for new businesses that do not have the time, money, or resources to establish a client base quickly.
According to Dr. Maurice Roussety (on CrowdRise) franchises generate revenues in excess of $144 billion and directly employ more than 460,000 Australians through over a thousand franchise systems.