The Indian Small Business & Franchise Association (ISFA) has released its January 2025 Pre-Budget Expectations Survey Report for the Franchise and Retail Industry, highlighting key demands from small businesses ahead of the Union Budget 2025-26. Targeting MSMEs in retail and franchising, the report captures insights from franchisors, franchisees, and owners on finance, taxes, and growth enablers.

Top Concerns

Tax policies and compliance topped concerns for 40% of respondents, followed by financing access at 26.67%. Respondents seek simplified GST processes and clarity to cut administrative burdens, allowing focus on operations. ISFA emphasizes these reforms to boost scalability for micro-enterprises.

Desired Government Priorities

Tax relief for small businesses emerged as the top priority (40%), with easier loans and logistics upgrades at 20% each. Franchises urge incentives for non-metro expansion, including subsidies and grants for job creation. Women entrepreneurs specifically call for training, mentorship, and funding support.

Game-Changing Reforms

Incentives for innovation and expansion ranked highest (40%) among tax changes, alongside simplified compliance (26.67%). Sector reforms prioritize stronger consumer protections (40%) and lower licensing costs (26.67%). Subsidies for new market entry (40%) and recruitment training (33.33%) would spur franchise growth.  

Broader Impacts

A majority (73.33%) expect the budget to lift consumer spending via income boosts. Lower interest rates and tech funding tied at 33.33% for retail financing needs. Post-budget, boosting demand (46.67%) and public-private ties top focuses.  

Advocacy Outlook

National campaigns for franchise awareness (53.33%) and sustainable support (40%) could transform startups. ISFA plans to push these to policymakers, aligning with MSME calls for credit and tax ease in Budget 2026 discussions. The findings position franchises as key to employment and regional growth.