WAXIT's Mall of the South outlet.
Image: WAXIT
Beauty franchise WAXIT has launched its first micro-franchise store at Mall of the South in Johannesburg, with its model designed to help women employees transition into business ownership coinciding with International Women’s Month.
Research shows that women entrepreneurs in South Africa are more likely to run smaller businesses yet face greater barriers when trying to scale.
In addition, women face gender-based challenges, such as limited access to funding and networks, continue to hinder the growth of female-led enterprises, a report commissioned by the Shoprite Group shows.
WAXIT believes that micro-franchising could become one of South Africa’s most powerful, yet underutilised, tools for economic empowerment.
Founded by Michelle Royston, WAXIT has grown steadily since launching in 2015 and now operates 41 branches across Gauteng, KwaZulu-Natal, and the Western Cape.
The brand’s specialised wax-only format has enabled consistent operations and training, forming the foundation for the new micro-franchise model, the company says in a statement.
The first micro-franchise store is operated by two long-standing employees who have transitioned to become micro-franchisees through a structured five-year incubation programme, WAXIT explains.
The micro-franchise model enables experienced team members to step into ownership roles while benefiting from the support, systems and brand strength of an established business.
2023 data from the Franchising Association of South Africa shows that the number of franchise systems has increased by 43% since 2019.
At the same time, research from Standard Bank Top Women shows franchising can offer a relatively stable entry into business ownership, with 89% of franchisees breaking even within their first year.
Franchising is a vital contributor to economic growth. Research by Pinsent Masons estimates franchising in South Africa generates turnover of about R999 billion and contributes roughly 15% of the country’s gross domestic product.
WAXIT said each new franchise business in South Africa has the potential to create between eight and ten direct jobs, with an additional seven indirect jobs generated for every fourteen direct roles through supply chains and support services.
Franchises alone account for around 500,000 jobs across 21 sectors through more than 68,000 franchisees, Franchising Association of South Africa data shows.
From a broader perspective, Banking Association South Africa data has shown that small and medium enterprises account for about 91% of formal businesses in the country, employ roughly 60% of the labour force and contribute around 34% of economic output.
Despite their importance, many small businesses face challenges including crime and corruption, electricity constraints, shortages of skilled labour, limited access to finance, regulatory compliance burdens and difficulty accessing markets, the association said.
Shoprite’s report found that, while 51.2% of small, medium and micro enterprises are male-owned, women are more likely to operate smaller firms and encounter obstacles such as limited access to funding and business networks.
The study, conducted by World Wide Worx through a survey of 800 SMME owners nationwide, also highlighted geographic disparities that leave businesses in less-developed regions with reduced access to infrastructure and markets.
“I want to build a legacy, not an empire,” Royston explains. “Empires expand. Legacies endure.”
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