IS YOUR BUSINESS REGISTERED ?

 Just this week Uganda Registration Services Bureau has been providing technical assistance to business people in a certain part of Kampala. Out of curiosity I asked a certain trader whether he considered seeking technical advice from them. His response was that it will not be beneficial to his business. This has prompted me to write this article. Over 90% of Uganda's economy is made up of small and medium enterprises. This means that they are the heart beat of the economy. A large number of the micro enterprises have challenges such as being informal in nature . Informality makes them vulnerable and risky for formal financial institutions to lend to them. So a large informal sector means that such enterprises will find it hard to access affordable credit and they will struggle to remain afloat.

why is it important to register a business? Though a number of entrepreneurs feel it is wise to operate informally it is also very dangerous. When a business is registered it operates freely without fear of being closed by government. This gives the owner a peace of mind. In addition financial institutions find it easier to deal with registered companies and these are able to access credit to boost their operations. In addition a registered business can sue or be sued when they have a challenge. A number of rural people have lost their hard earned savings to informal groups because they were not registered. 

Registered companies or business are credible and this gives them an advantage in the market. Some enterprises have very good products but have been denied supplying them to large supermarkets because they lack Uganda National Bureau of Statistics Trade Mark. Imagine risking your health by going to an unlicensed medical center. One can easily lose their lives.

By and large registering a business helps it to gain credibility and widen its customer base. Uganda is regarded as one of the world's most entrepreneurial countries. This is good and we should nurture the entrepreneurial spirit by encouraging business people to register their businesses.

Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

+256752615916

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