Empowerment of Small to Medium Enterprises using Franchise Takeover Model

Abstract

Small to medium enterprises (SMEs) have really great potential as a national economic booster. However, SMEs encounter some obstacles and detentions. On the other hand, franchising is growing up to remote areas and overcoming the market of a product. It needs a special strategy required by the local and also central government to increase the capability of SMEs in realizing the national economic booster. This research aimed to evaluate the policies made by the local government in developing SMEs through franchise take over policy to improve SMEs as well as dealing with the obstacles, and to analyse the readiness of SMEs perpetrator in managing franchise business, especially from the legal perspective. This research is qualitative in nature. Qualitative methods are used in order to locate the hidden meanings from the research subjects. This research is using the Socio-Legal method. The result of this research is the local government’s policy to give extra attention to SMEs with a new method that is franchise takeover model. The advantage and disadvantage of this model need to be analyses Small to medium enterprises (SMEs) have really great potential as the national economic booster.