Although strengthening small and medium enterprises (SMEs’) provides the strongest basis for business growth, the sector is still grappling with high rate of business mortality.
Rosemary Mutyabule, head of business advisory at Enterprise Uganda observed that many SMEs’ have been forced to shut down operation because of high costs of doing business.
Mutyabule noted that some people expect to begin reaping faster yet business prosperity is a gradual process which requires patience.
She was recently addressing journalist at Serena hotel during a function to renew commitment aimed at encouraging more SMEs’ prosper in business.
“If business technocrats do not come out to support these SMEs’ grow in business, there will be increased grappling with unemployment. We need to support these young people to gain the momentum of doing business and get economically empowered, “said Mutyabule
Herbert Akampwera, the country manager at challenges world wide, NGO supporting business prosperity noted that some SMEs’ begin without support documents.
“Business requires formal documents and one should be in position to track down profits, losses coupled with expenditure. Some of these SMEs’ are forced to close because of failure to start business formally,” noted Akampwera
He explained that because some of these SMEs’ do not have support business documents, it is difficult to help them through guaranteed loan schemes.
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As a result, Akampwera observes that the SMEs voluntarily closed down because the business operation can not proceed.
To reduce this high business mortality, Akampwera advises SMEs’ to follow the formal procedures of business registration to win confidence of both clients and partners.
Fabian Kasi, the chairman at Uganda Bankers’ Association (UBA) and managing director Centenary Bank believes that SMEs’ should be helped through constant business guidance.
Kasi noted that some SMEs’ lack technical expertise and encouraged all technocrats to offer skills to the young people.
He encouraged young people to often renew their skills and align within the growth of their business.
Maria Kiwanuka, special presidential advisor on finance affairs called on mentors to come to the rescue of young people venturing in business. Kiwanuka believes that SMEs’ require constant mentoring coupled with real practical skills in relation to specific business for growth.
“I believe that business cannot be tackled in isolation, we need to rally behind each other and remain supportive to succeed in whatever ventures we are in,” said Kiwanuka
She observes that most SMEs’ are fast reaching the extinction point because they have no role model business people to rely on for tips. Kiwanuka encouraged all SMEs’ to often do a mini feasibility study on business they intend to venture in and appreciate the challenge associated with each business. This in her view will enable them better understand the basics required in operating a given business.
