SUPPORT MICRO SMALL & MEDIUM ENTERPRISES IN UGANDA

31 Women groups have joined cooperatives out of the 37 groups that were trained. They have been going through business mentorship mainly The core business development skills that include Governance, Financial records, Human resource, basic skills in marketing and sales, and use of smart phones for a few members. All these women have joined community based cooperative groups introduced by the Government of Uganda locally known as Emyooga and  Parish development model where groups with business ideas can access low interest capital and grants. These low interest capital has grace periods that makes it ideal for the poor women to get off with their business ideas.

According to Uganda Jobs strategy for inclusive growth, micro, small, and medium enterprises created within the past five years now generate over 50% of formal jobs, and household enterprises provide employment for 3.1 million households. The 2020 Mastercard Global Index of Women Entrepreneurs estimated that women own nearly 40% of all businesses. However,  women entrepreneurs earn 30 % lower profits than men and women business owners in Uganda face gender specific barriers, including lower access to capital, and segregation into lower-value sectors.  

To unlock the potential of women entrepreneurs in Uganda, a comprehensive package is needed to address key barriers in a comprehensive manner. The new project Generating Growth opportunities and productivity for women enterprises (GROW) project funded by the World Bank through Government of Uganda. It will support a multi-sectoral program of customized services that empower women entrepreneurs and transition their enterprises, from micro to small and, from small to medium, as well as improve their productivity.

37 women in different cooperative groups have trained in business development skills. Having been engaged in small businesses for some time it is important for them to keep acquiring different skills in order for their small enterprises to grow. These are mainly women in refugee hosting districts. These women who have been train are both refugees and host communities. Business Development Services (BDS) are non-financial services offered to help start-ups, micro, small and medium enterprises (MSMEs) and Small and Growing Businesses (SGBs) tackle obstacles more effectively, speed up growth and achieve greater scale. These services include incubation, acceleration, technical assistance, coaching, training, consulting, embedded talent, and other forms of non-financial support.  In Uganda, microbusiness enterprises have annual turnover up to UGX 10,000,000 (ten million). Small enterprises have annual turnover between UGX 10,000,000 – 50,000,000 (ten to fifty million), medium enterprises have annual turnover between UGX 50,000,000 – 2,000,000,000 (fifty million to two billion) There are many opportunities now in the country to support women owned businesses and it is critical to support them with the necessary technical skills to embrace and take up these opportunities effectively.

• MSMEs in Uganda face several challenges that limit their growth. Some of these challenges include:
• Informality of MSMEs that limit their ability to competitively bid for government tenders
• Weak technical and managerial skills that limit MSMEs’ capacity to take on large projects
• Restrictive laws and regulations, as well as institutional and other attitudinal challenges, that inhibit MSMEs’ ability to comply with laws and regulations
• Limited access to long term and affordable finance
• Costly and lengthy process for product certification and standardization
• Limited access to markets and information
• Limited access to technology to support operations
• Lack of supporting infrastructural such as co-working facilities, industrial parks, business premises, clusters, and access to land for operation, common testing facility centres and business incubators that support innovation and creativity among MSMEs.
• High cost of doing business due to inadequate and expensive infrastructural facilities related to transportation (roads, railways), power generation, transmission and distribution, water supply, telecommunications.

To change this trajectory, there is need for BDS to provide MSMEs with relevant support throughout the various stages of their development, being cognisant of their positioning within the market in which they operate and the industry value chain. As part of the third National Development Plan (NDP III), the Ugandan Government committed to improve the management capacities of local enterprises through mass provision of BDS geared towards improving firm capabilities. Establishment of a National BDS Framework is one of the key interventions geared towards facilitating mass provision of BDS under NDP III.