In the midst of a crisis, human beings need immediate relief. Natural disasters, from the tsunami in Asia to Hurricane Katrina, require a quick response from groups like the Red Cross and other humanitarian organizations. But then what? After the aid money has dried up and the relief organizations have gone home, how do people in the developing world support themselves?.

In the developing world, after the acute crisis has subsided, then what? Corrupt
governments, a general lack of respect for the rule of law and individual property
rights keeps the poor systematically disenfranchised. As Kirk Magleby relays in
his book, Ending Global Poverty - The Microfranchise Solution, “Enterprise is the
only effective, humane way to solve poverty in a contaminated social environment
largely bereft of public trust and cooperation.” (p.4).

Providing local entrepreneurs with financing to launch or expand their small businesses has a lot of intuitive appeal. Indeed, financing is part of an enterprise solution to poverty alleviation. However, providing money to expand businesses that are inherently flawed only exacerbates the problem of systemic poverty. Pumping money into marginal businesses that provide little employment or so little profit for owners that they cannot get ahead only delays the implementation of a true sustainable solution.

Microfinance alone is necessary but not sufficient to solve poverty. Business owners need training, marketing and on-going support in order to launch and continuously improve their businesses. Busy entrepreneurs don’t often have the time to think beyond the urgent needs of the day to consider important aspects of their business. Franchisors stand outside of the daily operations of the businesses they help establish, working “on the business” while franchisees continue working “in the business.” This cooperative relationship provides a maximally resilient business structure, most ready to compete in the marketplace.