AS UGANDANS ARE WE PROUD OF THE BUSINESSES THAT HAVE SCALED?

 As a writer Iam guilty of quoting companies from abroad that have scaled and created enormous impact in Uganda. The question that I put across is don't we have Ugandan companies that started small and have scaled? At a recent training they gave examples of Ugandan businesses that started small and have scaled over time. They might not be many but they are an indicator of what can happen if a Ugandan entrepreneur is focused and perseveres. Ugandans by their very nature are enterprising but it seems we take this unique gift for granted. If you want to witness the entrepreneurial spirit of Ugandans, try to pass down town Kampala and witness how women and young people are trying to market their products to customers. To show their resilience even when tax authorities run after them they do not quit.

Studies show that though Uganda is one of the most entrepreneurial countries in the world, these businesses do not see their first birth day. The key question is, what is the missing link? Could it be lack of capital? Could it be the hostile economy? I do not have an answer. Amidst these challenges there are companies such as Nina Interiors and Ugachick that have persevered over the years and are employing thousands of Ugandans and contributing to national development through the payment of taxes. When one reads about them most started humbly and have gone through turbulent times. However the entrepreneurs are committed to their vision. I read the story of an African entrepreneur by Professor Gordon Wavamunno in which he recounts how he built his empire. It was not easy but there are a lot of secrets that he shares.

Today we have young entrepreneurs who want to succeed overnight. Someone starts a business and he or she wants to become like Ugachick in 6 months. The desire for instant profits makes entrepreneurs to forget that we can never by pass the laws of nature. Sometimes entrepreneurs enter business for the wrong reasons. For example someone is told there is a lot of money in a certain business and without adequate research they start the business without clear strategic direction. Other businesses collapse because they do not take time to find out the regulatory requirements. They end up opening companies without basic regard to the law. The other reason why Uganda's enterprises collapse is because many entrepreneurs do not separate business from personal money It is very easy for an entrepreneur to divert a loan from recapitalizing the business into other unplanned ventures.

The other factor that frustrates the development of Ugandan businesses is the lack of cooperation. There is the spirit of individualism in society. This means that we have so many small businesses that struggle to survive. A look at Indians is that they run their businesses as joint ventures and it is not surprising that Madhvani Group has existed for all these years. Amongst Ugandans there is a lot of suspicion and this has affected a number of ventures.

So as we grapple with youth unemployment, entrepreneurship gives Ugandans an alternative to enable university graduates to start and expand their enterprises. The fact that we have some Ugandan companies that have stood the test of time and scaled gives us hope that with focus and determination , a number of youths can start ventures that will survive for long. The beauty is that Ugandans are very enterprising people.

Phillip Kiryowa

Personal Finance Coach(CPC,CMA)

Advanced Empowerment Link

+256752615916(For Consultations)

Comments

Post a Comment

Popular posts from this blog

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

THRIVING AMIDST UNEMPLOYMENT

 Ask any graduate what their worst night mare is and they will inform you that lack of access to a dignified employment opportunity is a big hurdle. Over 70% of Ugandans are below the age of 30 years of age. There are very many reasons why the unemployment rate needs to be addressed. Uganda has over 30 universities and all universities graduate over 300,000 graduates per year yet the formal sector produces on average 70,000 jobs. This mismatch is an indicator of the frustrations that the young people face. It was on media last year when I saw a group of able bodied youths who wanted to beat up staff of a sports betting company for failing to pay for their "Return on Investment" in Bugiri District. Iam not saying that all youths are involved in crime .What am trying to point out is that the probability of a youth without a job being involved in crime is high( after all there is a saying that an idle mind is a devil's workshop). Just this year there was youth who was killed...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more