Franchises secure 99,000 jobs but do not end unemployment

BIFEX 2015 forum held under the title ‘Business Beyond Borders’ reflected the concerns and fears as well as challenges and achievements of the franchise sector in Lebanon amidst the precarious economic, security and political conditions. The event was organized by the Lebanese Franchise Association (LFA) under the patronage of Prime Minister Tamam Salam represented by Ministry of Tourism Michel Pharaon in the presence of the Ministers of Finance, Industry and Labor. The forum noted the need for political and security stability to overcome the present economic hurdles. Pharaon in his address pointed out that the franchise sector secures some 99 thousand jobs accounting for nearly 4% of the Gross Domestic Product, equivalent to USD 2.4 billion. It also showcases an embodiment of Lebanese innovation and creativity which is being exported to over 40 countries, “where on the other hand, many countries in the region tend only to receive and locally market foreign franchise licenses”. Minister of Industry Hussein Haj Hassan praised the fact that the franchise sector contributes to exporting the Lebanese know-how and products thus constituting part of its industrial exports. He confirmed that the Lebanese Industrialists Association has lately appealed for government support of the industrial sector, adding that the latter has the capacity to create some 1500 new jobs every year, and can significantly contribute to reducing the trade deficit which has reached a high of USD 17 billion. For his part, Labor Minister Sajaan Azzi said that through its support to small and medium enterprises to develop new trademarks, LFA is consequently helping in creating new job prospects, cutting back on the emigration of Lebanese workforce but will not be able alone to put an end to the growing level of unemployment that reached 25% overall, and 35% among the youth. (As Safir, Al Diyar, 14 May 2015)