Entrepreneurs unite to demand inclusion policies
What you need to know:
- As a Federation, Mr Mugerwa said they plan to establish a registry and national database of social enterprises in Uganda where such businesses will benefit.
Entrepreneurs under a newly formed umbrella organization, the Federation of Uganda Social Entrepreneurs, have united to demand government recognition and inclusion policies tailored to the unique needs of social enterprises.
The entrepreneurs argue that small businesses, particularly those with social and environmental missions, are being overburdened by regulatory demands before they have the chance to grow.
Speaking at the official launch of the Federation on May 9 in Kampala, Ms Stella Lukwago, an entrepreneur, said most of them fail when they are starting premature regulatory pressures and bodies.
“We have raised this issue repeatedly, social enterprises are being milked before they even begin, as soon as you start, the Uganda National Bureau of Standards is asking for licenses, and the Uganda Revenue Authority is watching closely, ready to impose taxes,” Ms Lukwago said.
She added, “Everyone is focused on extracting from these businesses before they take the time to understand what a social enterprise truly is, what kind of impact it’s designed to create, and how much revenue it’s even capable of generating in the early stages.”
Ms Lukwago said social entrepreneurs are contributing significantly to Uganda’s economy and are playing a critical role in addressing unemployment, especially among the youth.
“If they are complementing the government’s efforts, why aren’t we supporting them better without change, we will remain stuck—no growth, no progress.”
Mr Timothy Mugerwa, the president of the Federation, said the country has over 200,000 social enterprises, most of which struggle due to the absence of an enabling policy or legal framework.
“These businesses do not have the structural support they need. We need a government policy that specifically supports social enterprises, one that guides, protects, and streamlines their operations.”
Adding on, “Many social entrepreneurs face hurdles in acquiring necessary certifications, such as product approvals, which hinders their ability to access both local and international markets.”
As a Federation, Mr Mugerwa said they plan to establish a registry and national database of social enterprises in Uganda where such businesses will benefit.
“We must promote enterprises that care about people and the planet, not just profit. That’s the essence of sustainable development,” he said.
