COMPARATIVE ECONOMIC ANALYSIS OF WORKING UNDER A READY-MADE BRAND IN SMALL BUSINESS (FRANCHISE) AND STARTING A BUSINESS FROM SCRATCH

Abstract

This article provides a comparative analysis of the economic efficiency of two main market entry strategies for small businesses: creating a private brand from scratch and operating under an established brand (franchising). Within the framework of the study, the initial investment volume, operational costs, payback period, and bankruptcy risks of both models were evaluated. The results indicate that while purchasing an established franchise requires higher capital in the initial stages, it significantly increases the survival rate of the business. Conversely, a business started from scratch entails higher marketing costs and market risks, but offers complete financial and operational independence.