What you need to know:
- According to Prof Samuel Sejjaaka, many businesses in Uganda fail because some people just invest before doing any research
To safeguard against increasing business failure, Ugandans must take time to learn and understand the type of business they want to invest in instead of doing what they have no idea about.
Speaking during a financial wellness training that sought to equip Ugandans with skills and knowledge of financial progress and inclusion in Kampala on Wednesday, Prof Samuel Sejjaaka, the Monitor Publications and UAP chairman, said businesses in Uganda fail because some people just invest before doing any research on an enterprise.
“Before starting a business, people should work towards getting basic knowledge of businesses they want to do. Don’t invest in something you don’t understand,” he said, noting that a number of Ugandans are driven by what they hear and think of a business.
Prof Sejjaaka also cautioned Ugandans against investing in a business with a short term view, noting that many people have avoided investing in secure investments such as securities and treasury bills because of short termism.
Thus, he said, it was high time Ugandans start businesses with a purpose so that the country can create a tangible business base, capable of sustainably investing in equities, treasury bills and bonds.
Uganda has been ranked as one of the most entrepreneurial countries in the world.
However, it has also been noted that whereas Ugandans innovate a lot majority of their business do not live to see their first birthdays.