Experts tip entrepreneurs on formalising businesses
Mr Ronald Mukasa, the business development manager Enterprise Uganda, addresses SMEs at a breakfast meeting in Kampala ahead of the Global Entrepreneurship Week. COURTESY PHOTO
What you need to know:
- Fact. When a business is registered, it is easy to receive finance from funding institutions.
- Commenting on access to credit, Mr Charles Ocici, the managing director Enterprise Uganda, said entrepreneurs should shift their focus from credit to capital.
- Speaking ahead of the entrepreneurship week, Mr Iga Zinunula, a manager from IRIS Consulting, said entrepreneurs should start focusing on growing wealth for generations to come.
Kampala. Business experts have urged budding entrepreneurs to register their businesses, a move they say will enable them access external funding.
Mr Badru Ntege, chief executive officer NFT Consult, said when a business is registered, it is easy to receive finance from government or other organisations as opposed to one operating informally.
“Some funds require a company to be registered but some of us do not keep a company registered for a year or two, if it is registered, you are not paying taxes so there is inconsistence,” he said at the launch of the Global Entrepreneurship Week in Kampala last week.
Government recently sunk Shs53b in the Uganda Women Entrepreneurship Programme to improve women’s access to financial services.
Other funds include the Youth Livelihood Fund (Shs265b) and the Innovation Fund worth Shs15.3b.
Mr Ntege cited a gap in mentorship which he said would otherwise guide and push businessmen to file for taxes, register businesses and consistently utilise banking facilities.
“When you go as a business for a loan, they look at the activity on your bank account. If you have been depositing, one can see a year later that you have potential to earn,” he explained.
Commenting on access to credit, Mr Charles Ocici, the managing director Enterprise Uganda, said entrepreneurs should shift their focus from credit to capital.
“When it comes to capital, broaden the outlook, start with what you possess. Begin to make growth from there, once that happens and you begin banking and withdrawing, the bank will recognise you and start to have a conversation with you,” he said.
Speaking ahead of the entrepreneurship week, Mr Iga Zinunula, a manager from IRIS Consulting, said entrepreneurs should start focusing on growing wealth for generations to come.
He said this entails patience, commitment and self-drive.
