Govt warns poor business advice hurting Ugandan enterprises
The Ugandan Ministry of Trade has expressed concern over the prevalence of poor-quality business development services, which are contributing to high failure rates among local startups. Officials are calling for better standards to help small businesses scale effectively.
Why it matters
Addresses critical barriers to economic development and entrepreneurship in emerging markets.
The Ministry of Trade, Industry and Cooperatives has raised concern over limited access to coordinated, quality and sustainable Business Development Services (BDS), saying the gap is hindering Ugandans with promising business ideas from turning them into viable enterprises and preventing small and medium businesses from scaling up.
Mr Johnson Abitekaniza, the Assistant Commissioner for Training and Business Skills Development at the ministry, said the market has also been flooded by uncertified and underqualified consultants who charge low fees but provide substandard advice, which he said contributes to business stagnation and failure.
Business Development Services include non-financial support such as training, mentorship, business planning, financial literacy, bookkeeping and market linkages aimed at helping Micro, Small and Medium Enterprises (MSMEs) improve their performance and grow.
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