~~N-~ And Small Scale Enterprises And Employment Generation In Kansanga Trading Centre Makindye Division, Kampala, Uganda

TABLE OF CONTENTS

DECLARATION ................................................................................................•............................................ 1

APPROVAL ................................................................................................................................................... II

LIST OF ABBREVIATION .......................................................................................................................... Ill

CHAPTER ONE .............................................................•......••....................................................................... 1

INTRODUCTION .........................................................•......•........................................................................ 1

1.0 INTRODUCTION ............................................................................................................................ 1

1.1 BACKGROUND OF THE STUDY .......................................................................................................... 1

1.1.1 HISTORICAL PERSPECTIVE ........................................................................................................... 1

1,1.2THEORETICAL PERSPECTIVE ......................................................................................................... 4

1.1.3 CONCEPTUAL PERSPECTIVE .......................................................................................................... s

1.1.4 CONTEXTUAL PERSPECTIVE .......................................................................................................... 7

1.2 PROBLEM STATEMENT ....................................................................................................................... 8

1.1 PURPOSE OF THE STUDY .......................................................................................................... 10

1.2 OBJECTIVES OF THE STUDY ..................................................................................................... 10

1.3 RESEARCH QUESTIONS ............................................................................................................. 10

1,4 SCOPE OF THE STUDY ................................................................................................................ 10

1.4.1 TIME SCOPE ............................................................................................................................. 11

1.4.2 GEOGRAPHICAL SCOPE ......................................................................................................... 11

V

1.5 SIGNIFICANCE OF THE STUDY ....................................................................................................... 11

1.9DEfINITION Of TERMS .................................................................................................................... 13

CHAPTER TWO .......................................................................................................................................... 15

LITERATURE REVIEW ............................................................................................................................. 15

2.0 INTRODUCTION .......................................................................................................................... 15

2.1 THEORETICAL REVIEW .................................................................................................................... 15

2.2 CONCEPTUAL REVIEW ..................................................................................................................... 16

2.1.1 SMALL SCALE AND MEDIUM ENTERPRISES AND THEIR CONTRIBUTIONS ............... 17

2.1.2 SMALL SCALE AND MEDIUM ENTERPRISES AND EDUCATION ..................................... 17

2.1.3 SMALL SCALE AND MEDIUM ENTERPRISES AND FACTORS AFFECTING THEIR

ACTIVITIES ............................................................................................................................................... 18

2.2 THE EMPLOYMENT CREATION PROBLEM .............................................................................. 19

CHAPTER THREE ...................................................................................................................................... 24

METHODOLOGY ........................................................................................................................................ 24

3.0 INTRODUCTION .......................................................................................................................... 24

3.1 THE RESEARCH STRATEGY ....................................................................................................... 24

3.2 RESEARCH DESIGN .................................................................................................................... 24

3.3 SURVEY POPULATION ............................................................................................................... 24

3.4 SAMPLING DESIGN .................................................................................................................... 24

3.5 SAMPLE SIZE ............................................................................................................................... 25

3.6 SAMPLING PROCEDURES ................................................................................................................ 25

3.6 DATA SOURCES ................................................................................................................................. 26

VI

3.5.1 DATA COLLECTION METHODS ............................................................................................. 26

3.5.2 DATA PROCESSING AND ANALYSIS ................................................................................... 26

3.5.3 MODEL SPECIFICATION ........................................................................................................ 27

3.6 RELIABILITY AND VALIDITY OF RESEARCH INSTRUMENTS ............................................. 27

3.7 LIMITATIONS OF THE STUDY .................................................................................................. 27

3.7.1 SLOW /NON RESPONSE ......................................................................................................... 27

3.7.2 TIME .......................................................................................................................................... 28

3.7.3 FINANCE ................................................................................................................................... 28

CHAPTER FOUR ........................................................................................................................................ 29

PRESENTATION OF RESULTS, ANALYSIS AND DISCUSSIOfi .......................................................... 29

4.0 INTRODUCTION .......................................................................................................................... 29

4.1 TESTING THE MODEL SPECIFICATION .................................................................................. 29

4.2 BACKGROUND CHARACTERISTICS OF THE RESPONDENTS .............................................. 32

4.2.1 SEX OF THE RESPONDENTS ................................................................................................. 34

4.2.2 MARITAL STATUS OF THE RESPONDENTS ........................................................................ 35

4.2.3 EDUCATION LEVEL OF THE RESPONDENTS ...................................................................... 36

4.2.4 INCOME PER MONTH OF RESPONDENTS .......................................................................... 38

4.2.5 OCCUPATION OF THE RESPONDENTS ................................................................................ 40

4.3 SMALL SCALE ENTERPRISES IN KASANGA TRADING CENTRE .......................................... 41

4.3.1 CATEGORIES OF PEOPLE INVOLVED IN THE SMALL -SCALE ENTERPRISES IN

KASANGA TRADING CENTRE ................................................................................................................. 43

4.3.2 CHALLENGES ENCOUNTERED BY SMALL-SCALE ENTERPRISES IN KASANGA

Vil

TRADING CENTER ....................•..•.........................•....•.•...•.....••.......•..•..•.•.•...•.••.•..••................................. 44

4.3.3 CONTRIBUTION OF SMALL-SCALE ENTERPRISES IN THE AREA .................................. 45

4.4 EMPLOYMENT CREATION PROBLEM IN KASANGA TRADING CENTRE ............................ 47

4.4.1 CAUSES OF UNEMPLOYMENT ............................................................................................... 47

4.4.2 THE IMPACT OF UNEMPLOYMENT ...................................................................................... 48

4.4.3 WAYS THROUGH WHICH GOVERNMENT HAS TRIED TO SOLVE UNEMPLOYMENT IN

KASANGA TRADING CENTRE ................................................................................................................. 50

CHAPTER FIVE ............................................................•............................................................................. 52

SUMMARY, CONCLUSION & RECOMMENDATIONS ........................................................................... 52

INTRODUCTION .......................................................................................................................... 52

5.1 CONCLUSIONS ............................................................................................................................ 52

5.1.1 RELATIONSHIP BETWEEN SMALL SCALE ENTERPRISES AND EMPLOYMENT

CREATION ................................................................................................................................................. 52

5.1.2 RELATIONSHIP BETWEEN EDUCATION AND EMPLOYMENT ......................................... 52

VITAL FACTORS AFFECTING MICRO ENTERPRISES ........................................................ 53

RECOMt.,1ENDATIONS ..................................••...••••............•.•••.•...•••••.......•...•..............•................ 53

5.2.1 THE NEED TO IMPLEMENT THE MSMES POLICY .............................................................. 53

5.2.2 RELEVANT EDUCATION AND TRAINING ............................................................................ 54

5.2.3 NECESSARY FACTORS AFFECTING MICRO ENTERPRISES ............................................. 54

5.2.4 OTHER RECOMMENDATIONS ............................................................................................... 54

REFERENCES ................................•.........................•.............................••••.•..•••.......................................... 55

APPENDIX 1 .............................................................................................................................................. 58

Vlll

APPENDIX I: ESTIMATi:0 3UDGE'f ..................................................................................................... 68

ABTSRACT 

The research report was entitled Micro and Small Scale Enterprises and Employment

Generation in Kansanga Trading Centre Makindye Division, Kampala, Uganda, the study

was guided by the following research objectives; to examine the ways through which

micro and small scale enterprises are creating employment in Kansanga trading

centre,to establish the relationship between micro and small scale enterprises and

employment accessibility in Kansanga trading centre and to assess the factors for

establishment of micro and small scale enterprises in Kansanga trading centre. The

findings of the study revealed that majority of the respondents were aged (34 - 43)

years, more men were engaged in micro enterprises compared to women, and majority

of persons engaged in such enterprises were married.in conclusion, in line with

education attainment, the researcher revealed that majority of the respondents who

derive their livelihood from within the informal sector (small scale enterprises) did not

have secondary education and above. The researcher recommended that,the MSMES

policy should be finalized and quickly implemented in order to address some of the

challenges so as to enable the enterprises expand and create more employment and

hence nr.-a'.::lc,o should enhancement of the capabilities of the informal

sector workers through skills and training which is tailored to their competitive needs.

The government subsidize the cost of power since it is a key factor for the

establishment scale enterprises and more agro basic industries should be

established since majority of the people in the country are practicing agriculture. There

should be an improvement in the existing roads and other communication net works

since they are deemed vital for starting up small-scale enterprises and government

should think of re-opening of co-operative societies to bring people with common

interest together.