Prime Minister Mirko Cvetkovic said yesterday  that franchising is a good chance for Serbia now that the country is exiting economic crisis and when as many jobs and entrepreneurs as possible are needed.

Opening the First International Franchising Expo, Cvetkovic said that franchising is not unfamiliar to Serbia since it has been used for several years now, but its full possibilities have not been exploited though.

The Prime Minister said that the franchising is entrepreneurship with a reduced risk, given that those who take the franchise do not need to invest in the brand, and most often in production technology either.

Franchising is an opportunity for small and medium-sized enterprises to gain market position immediately, said the Prime Minister.

Minister of Trade and Services Slobodan Milosavljevic said that the service sector is particularly suitable for business through a franchise, especially in the hospitality, tourism and trade.

He said that Serbia has more than 100,000 retail stores that could survive being bonded to large companies through franchising and added that this could allow for a more even development of the country and for people to stay in their communities.

US Ambassador to Serbia Mary Warlick pointed out that the franchising has been providing business opportunities in the US for over 150 years and that some of the most famous US products, such as Coca Cola, McDonald's, as well as some car brands owe their success precisely to this model.

She said the US has more than 900,000 franchises and these companies create more than $880 billion of direct economic investment and make up 4.4% of the private sector.

President of the Serbian Chamber of Commerce Milos Bugarin said that the chamber’s centre for franchising has been working in the last three years on raising awareness of the importance of the franchise business.

He said that several workshops were held in 16 regional centres to show to the unemployed and entrepreneurs the benefits of franchising. In addition, the economic crisis has shown that franchise companies were the least hit by the crisis.

There are currently 50 franchises in Serbia, 80% of which are foreign.

The First International Franchising Expo was organised by the Serbian Chamber of Commerce, with the support of Serbian Association for Development of Franchising and the Commercial Section of the US Embassy.