Simple Money Skills for Women in Business

Call for Applications

The Problem

Sustainability of businesses in Uganda is bleak – “80-90% of startups fail within the first three years.” Many initiatives intended for income generation fail because they do not achieve their intended objective of generating income surpluses. 

Every farmer is a business person

In rural areas, where the majority of Ugandans live and eke a living from agriculture, almost every peasant farmer is trying to earn a profit, as well as feed his or her family. Many are not succeeding in making profit from farming as a business.

Artisans, Vendors, Hawkers and other micro and small business owners

There are plenty small and medium sized income generation initiatives, particularly so by persons less advantaged and often living in urban centres, the so-called urban poor. They are trying to earn a profit as well as feed their families. Many are not succeeding to make a profit from their businesses.

Government of Uganda programs

Such as the on-going Parish Development Model, are focused on facilitating smallholder farming households and small business owners to establish and operate viable income generating activities; but with insufficient success.

The Cause

According to an article, “The Silent Killers of Business,” published in Monitor, a major ‘killer of businesses’ is the business owner’s “failure to separate personal finances from business finances.”

Certainly, without proper financial records it is hard for a business owner to separate personal from business expenditure. And worse more, it is hard for a business owner to establish if the business is eating into the owner’s personal finances and making the owner poorer instead.

Indeed, a major reason as to why income generating activities are not succeeding is because the initiators and owners of those activities do not take the time to set up and maintain the necessary financial records.  

It is surprising how many people in Uganda do not keep some form of record of their income and expenditure. Many do not appreciate that every person responsible for themselves and or a household is necessarily a business person; and who needs to have useful financial records for decision making.

It is so bad to the extent that in Uganda, the culture of issuing payment vouchers and receipts is not widely practised. Few in Uganda insist on being given a receipt for all their purchases. It is the norm, in fact, to expect not to be issued a receipt.

If you are trying to run a small business, not issuing payment vouchers, not receiving receipts; and not keeping records for your finances, can be disastrous for you and your business; hence the high failure rate of 80-90% of startups.

The Solution

All Ugandans should learn some form of financial record keeping, financial report generation and analysis – simple money skills for everyday business.

• How can you keep good records of your finances (books of accounts)? 
• How can you generate reports about your finances? 
• How can you use the reports about your finances to make decisions?

The CPAR Financial Management Training Course, implemented under the Dr. Paul Hargrave Memorial Centre Human Development Project, will provide you with answers to such questions and more. It will equip you with skills and knowledge for effectively managing your finances; therefore, better income generation; therefore, better income; therefore, improved household standards of living.

We are grateful for the funding support that is making it possible for us to provide much needed financial literacy services. We pray for your continued support. Thank you!

Links:

• Call for Applicants for Money Skills for Business Training