The institute of franchising and internal threats to national economic security

Economic Annals-ХХI: Volume 153, Issue 7-8(2), Pages: 19-22

Citation information:
Begma, V., & Makarenko, T. (2015). The institute of franchising and internal threats to national economic security. Economic Annals-XXI, 7-8(2), 19-22. https://ea21journal.world/index.php/ea-v153-05/

Vitaliy Begma
D.Sc. (Economics),
Associate Professor,
National Institute for Strategic Studies under the President of Ukraine
7-a Pyrogov Str., Kyiv, 01030, Ukraine
begma@niss.gov.ua

Tetiana Makarenko
PhD Student (Economics),
National Institute for Strategic Studies under the President of Ukraine
7-a Pyrogov Str., Kyiv, 01030, Ukraine
tatvolna@ukr.net

The institute of franchising and internal threats to national economic security

Abstract. Introduction. Small and medium businesses play an important role in the national economy, driving economic growth rate. Establishing a relation between the institute of franchising and economic security (the two notions are often viewed separately) is an important element in the creation of competitive economy and forestalling threats to national economic security. Purpose. To develop the institute of franchising as an indispensable precondition of forestalling threats to national economic security. The codition and the main development trends in Ukrainian franchising market have been reviewed. Results. It has been proved that the institute of franchising may act as a «block» to economic security threats by offering legal business mechanisms, broad range of franchises and training of skilled cadres, creating new jobs and bringing in additional investments. Conclusions. The institute of frachising helps improve the level of the country’s technological, innovative and investment development and leads to civilized ways of running a business and market culture. It creates conditions for development and protection of intellectual property (preventing occurrence of primitive, low-tech production).

Keywords: Institute of Franchising; National Economic Security; Threats to Economic Security; Small and Medium Business; Franchise; Ukraine

JEL Classification: H56; M13; M29

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Received 2.06.2015