Entrepreneurs tipped on thriving in business

Kampala. Senior economist Fred Muhumuza has said while a number of small and medium enterprises (SMEs) have grown in the past year, problems remain, making this a difficult period to thrive.
“They are optimistic, they are thinking of hiring more people which is a sign of growth. But they have pointed out key challenges like taxes. Businesses at the economy level are deteriorating and at individual level, they are still struggling. Majority do not have the intention to expand into more branches meaning they see opportunities but the ability to expand is not there,” Mr Muhumuza said.
He was commenting on a 2018 survey report released at the Top 100 mid-sized companies’ conference organised by Daily Monitor, KPMG alongside sponsors such as ICEA, dfcu Bank, and Uganda Investment Authority yesterday.
Mr Muhumuza said there is a possibility that businesses still struggle because government has not successfully addressed them within its own structures. With the pending merger of government agencies, Mr Muhumuza believes some of these complaints could go away if a “proper clean-up” is done. There are also things businesses have to do internally to thrive.
“We have seen some of them are not literally linking up as joint ventures. Sometimes it is good to leverage on partnerships,” he said.
Another observation was that businesses are hardly using alternative ways of lowering the cost of credit yet they need to do more in this space.
“We looked into their sources of financing and none of them indicated at least to a sizeable number, that they are using supplier credit. Either they are using their money or borrowing from banks yet you can also borrow from people who supply you goods or you can have people work for you and you pay later. But that takes trust and can actually save costs of credit,” he said.
Business mogul Patrick Bitature said whereas the economy has numerous opportunities to offer in industry, oil and gas, mining, small trading, agriculture and tourism, running a thriving enterprise comes down to having grit.
“It is consistency, resilience and determination to do what you do. Too many of us give up especially in entrepreneurship because everything will be thrown at you to frustrate you. When you set up an investment, power is unreliable. You invest all your capital and the bank recalls a loan or refuses to be flexible. So set your goal and work like a crazy person to achieve your goal,” Mr Bitature said.
Ms Prudence Ukonika, the chief executive officer of Bella Wine, said with deliberate involvement of children from a young age, business can thrive and survive for generations.
Mr Tony Glencross, the managing director Monitor Publications Limited, said a lot of gains have been made thanks to the Top 100 mid-sized survey.
“We are opening doors for them to start up as local investors and we have enabled companies to engage in businesses as a direct result of inclusion in the Top 100,” Mr Glencross said.
SMEs said it is now time for government to join the conversation on how to improve the environment within which they operate, something KPMG pledged to look into.