A recent survey of business professionals in Kampala City yielded valuable insights into the primary causes of business failure in Uganda. From impatience and a lack of business management knowledge to blind imitation of other businesses, the evaluations provided a wealth of advice for aspiring entrepreneurs.
Godfrey Kirumira, a businessman within the real estate market, emphasized the significance of starting small and growing organically. He drew a parallel between business growth and education, explaining that just like a child progresses from kindergarten to university, a business should follow a similar trajectory – from a small retail shop to larger enterprises when ready.
Dr Ezra Rubanda, the executive director of the Uganda Manufacturers Association, stressed the importance of adequate preparation before embarking on a business venture. Citing the example of the kombucha drink, he warned against jumping into a business without considering the specific market conditions and demands.
Connie Kakihembo, the executive director of the Uganda Women’s Entrepreneurs League (UWEAL), highlighted the need for incubation and experience in running a business. She urged the government to provide support and guidance to budding businesses, particularly those started by individuals who have lost their jobs and lack the necessary skills.
Sudhir Ruparelia, the chairman and majority shareholder in the Ruparelia Group, echoed the sentiment of patience being a crucial factor in business success. He advocated for a customer-centric approach and reinvesting profits to cultivate growth, stressing the value of income generated from an investment.
The deputy executive director of Enterprise Uganda, Rosemary Mutyabule, pointed out the difficulties faced by many micro and small business owners who lack the capital to expand their enterprises. She recounted the dire circumstances of traders borrowing daily loans to stock their stalls, paying back exorbitant interest rates, and using the meagre profits to cover basic needs and expenses.
Thaddeus Nagenda Musoke, the chairman of Kampala City Traders Association, criticized the narrow-mindedness of Ugandan traders, who tend to operate in a competitive rather than collaborative environment. He advocated for the pooling of resources and running joint ventures to maximize profit margins.
Various other industry figures, including Charles Mbire, Susan Muhwezi, and Olive Kigongo, shared their insights, ranging from the importance of understanding the market and having a business plan, to the necessity of managing money and appreciating one’s comparative advantage. Each speaker offered valuable advice for both aspiring and established entrepreneurs.
In summary, the shared tips and observations from these seasoned business professionals offer invaluable guidance to those seeking to navigate the challenging landscape of entrepreneurship in Uganda. By heeding their advice and learning from their experiences, aspiring business owners can increase their chances of success in the competitive business environment.