Ugandan SMEs encouraged to look beyond borders for growth
Many small businesses fail to put in place governance structures, thus creating loopholes in the management of operations and financing. Photo / File
What you need to know:
- Absa highlights that venturing into international markets can also push SMEs to continuously improve the quality of their products and services, making them more competitive regionally and internationally.
Absa Bank Uganda is urging Small and Medium Enterprises (SMEs) to consider venturing into international markets to expand their businesses. The bank believes this will provide SMEs with wider markets, greater exposure, and opportunities for significant growth.
Absa highlights that venturing into international markets can also push SMEs to continuously improve the quality of their products and services, making them more competitive regionally and internationally.
The call to action comes despite the prevalence of many Ugandan SMEs remaining focused on local markets. These businesses often struggle with competitiveness and lack of access to financing, hindering their growth. The SMEs make up the majority of the businesses operating around the world. They are generally independent firms with less than 50 employees.
In his address to SMEs at Hotel Africana on Thursday during a training meeting themed 'Growing Beyond Borders' Entrepreneurial Training Programme, retail and business banking director of Absa bank Uganda, Mr Musa Mai Jallow, advised SMEs to look for ways of growing their businesses by acquiring new skills and keep on improving on the quality of their products and services to survive in the regional and global market.
“The SMEs are used to their local market here but they need to open up themselves for opportunities in the international markets. They should act locally but think globally and use technology to get things done electronically,” he said.
In response to follow-up questions, Mr Mail Jallow explained to The Monitor that the financial resources are available and the SMEs should stop complaining of lack of finances and what they (SMEs) need to do is to focus on creating new products or services. “By doing this they will attract the available financial resources in the market,” he said.
To further support SMEs, Absa has established a dedicated network of SME bankers in all 39 branches across the country. These bankers can assist SMEs in accessing the funds needed for their business development.
The training meeting concluded with a significant partnership signing between Absa and DHL, a global leader in the logistics industry. The program's purpose is to empower Ugandan SMEs by enhancing their understanding of the economic potential and benefits of international trade.
Mr Joseph A. Odole, the DHL Country Manager for Uganda, pledged the company's readiness to provide logistical services that will help SMEs ensure their products reach their intended international markets. DHL's support aims to help SMEs successfully enter the international market.
“We (DHL) are ready to help them (the SMEs) get in the market internationally,” he said.
