Transform your SME with technology

Empowering Small and Medium Enterprises (SMEs) is crucial for driving economic growth in Uganda. This involves supporting existing businesses and guiding them to boost competitiveness and productivity in local, national, and global markets. Achieving this requires expanding knowledge, implementing effective management practices, and strengthening human resource skills within the SME sector.

A core element of an enterprise’s sustainability is its ability to understand the strategic environment and remain competitive. This adaptability is essential, as global economic dynamics significantly impact regional economic structures, including the SME sector. Additionally, political stability, socio-economic conditions, and a supportive investment climate positively influence capital flows and investment, which are crucial for the development and resilience of small and medium enterprises.

Technology drives business competition globally, permeating every stage of operations and the business lifecycle. According to the bussinessdasher.com, 68 percent of countries experienced increased revenue from existing streams due to technology transformations. 76 percent of companies saw a reduction in costs due to their technology transformations. 79 percent of companies reported an improvement in employee experience from technology transformations. This means technology is a strategy for expediting development.

For developing countries such as Uganda, there are important and strategic roles in the use of technology support that can easily improve operational processes leading to the efficiency and consequently growth of SMEs. The use of technological systems can ease the changing of manual processes to automatic ones, reducing labour costs and operating costs, which then reduces the time needed to perform tasks; hence, increasing the speed of decision-making and increasing competitive business performance. Simply put, the function and role of technology will quicken the transformation of the business world, including SMEs developed in the community.

Through Mobile Apps and online banking platforms, customers can transfer funds, make mobile wallet payments, and settle utility bills and taxes, enhancing convenience and accessibility for all. Additionally, SMEs can scale their operations through streamlined access to funding options such as mobile-based loans and credit, helping them seize growth opportunities without lengthy application processes. Economic growth coupled with technological innovation will boost the productivity of enterprises and increase people’s welfare.

Government policies, business capital support, and initiatives to strengthen human resource capacities all play a vital role in the development of SMEs. Once essential systems and business processes are established, financial institutions can provide additional support such as affordable credit solutions and guidance in financial management and record-keeping. 

Through free financial literacy programmes, SMEs benefit through improved financial decision-making thus equipping them with essential skills to grow sustainably.
With a digitally driven financial partner, along with streamlined business systems and processes, Uganda’s SMEs are set to enhance efficiency, diversify product offerings, and fuel long-term growth.

James Olany is the strategy and business manager of Equity Bank.