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The FCA has begun a lobbying effort to have Australian government guaranteed loans introduced. Once again we see FCA stretching the truth.
Unfortunately Mr Wright has not kept up with the recent exposure of disastrous performance regarding SBA franchise loans.
He points out that small business assistance programs work successfully overseas, especially in the United States – where delinquency rates are low and support has not lagged for the program, despite the country's economic woes and fractious political climate. SmartCompany
And being a tardy on the uptake could have been expected given Mr Wright seems unaware of the size of the Australian franchising sector.
He adds that in the wake of further subsidies for car manufacturers, it's appropriate the Government show support for Australia's 700,000-strong franchise sector, which is a large part of small business.
At last report, as questionable as that was, Australia had around 1,000 franchisors and around 70,000 franchise contracts on the go at any one time. Although there is a growing turnover of both there appears to be plenty of replacement concepts and franchisees.
No doubt government guaranteed loans could increase turnover.
Australia does not have a clue on franchise failure rates even without government guaranteed loans. The FCA rigorously resisted attempts to have franchising performance data collected.
It seems that would be handy information before taxpayers even considered opening their wallets.