The Economic Policy Research Centre (EPRC) is working with the World Bank, Kampala Capital City Authority (KCCA), and 3 students from the London School of Economics and Political Science (LSE) to conduct a qualitative study detailing the constraints faced by Micro, Small and Medium Enterprises (MSMEs) in Uganda.
The study is being conducted in the districts of Mukono and Wakiso to document factors that hinder performance and expansion potential as well as value addition for local products manufactured by MSMEs.
Today MSMEs are seen as tools for household poverty alleviation, vehicles for job creation and income generation for Uganda’s urban and rural households. If managed well, MSMEs also have the potential to provide the economy with a continuous supply of ideas, skills and innovations necessary to promote competition. However, many MSMEs face survival challenges and difficulties of transitioning to production of high value tradable products with potential for growth and employment.
According to Corti Paul Lakuma, a Research Analyst with EPRC, besides informality, absence of finance, in-availability of working capital, high taxation, lack of modern technology, market failures and information gap continue to hit MSMEs hard.
Once completed, the study will inform the design of a coherent vision and strategy for economic development in the greater Kampala metro region covering Wakiso and Mukono. The strategy, will in turn strengthen KCCA’s decision-making ability and prioritization of its economic policies and investments in the city.