Small Business Enterprises And Creation Of Employment In Uganda A Case Study Of Owino Market In Kampala

TABLE OF CONTENTS DECLARATION DEDICATION ii ACKNOWLEDGEMENT iv TABLE OF CONTENTS v LIST OF ACRONYMS ix ABSTRACT x CHAPTER ONES 1 INTRODUCTION 1 1.0 Background 1 1.1 Statement of the Problem 3 1 .2Objective of the study 3 1.3 Specific objectives 3 1 .4Research questions 3 1.5Hypothesis 4 1.6Scope of the study 4 1.6.1 Content Scope 4 1.6.2 Time scope 4 1.6.3 Geographical Scope 4 1.7Significance of the Study 4 CHAPTER TWO 6 LITERATURE REViEW 6 2.0 Introduction 6 2.1 Definition and nature of small business enterprises 6 2.2 ADVANTAGES OF SMALL SCALE BUSINESSES 8 2.3 CATEGORIZATION OF ACTIVITIES OF SMALL BUSSINESS ENTERPRISES IN OWINO MARKET 9 2.4 CHALLENGES FACED BY SMALL BUSINESS ENTERPRISES 10 2.4.1 Poor Jnfrastructure~ 11 2.4.2 Financial Problems 11 V 2.4.3 Improper business Feasibi1ity~ . 12 2.4.4 Lack of Managerial Knowledge’ 12 2.4.5 Poor Educational Background 12 2.4.6 Out-Dated Technology’ 13 2.4.7 Poor Marketing Strategy’ 13 2,4.8 Increasing Competition: 13 2.5 solutions to the challenges facing small business enterprises 14 2.5.1 Traditional guarantee Associations’ 14 2.5.2 Financial sector development’ 15 2.5.3 Diversification and market expansion’ 16 2.5.4 Corporate governance’ 16 2.5.5 Human and Cultural Capital Development’ 17 2.6 The Conceptual frame work 18 CHAPTER THREE’ 19 METHOLOGY 19 3.0 Introduction 19 3.1 Research design 19 3.2 Study area and Target population 19 3.3 Sampling technique 19 3.4 sample size 19 3.5 Data collection tools 19 3.5.1 Questionnaires 20 3.6 Data Processing and 20 3.6,1 Data processing 20 3.6.2 Data Analysis 20 3.7 Source of data 20 3.7.1 Primary data 20 3.7.2 Secondary data 20 3.8 Validity and Reliability of data 20 3.8.1 Validity 20 3.8.2 Reliability using.................................................................................................................... 21 3,9 Ethical Consideration............................................................................................................... 21 3.10 Limitation of the 21 vi CHAPTER FOUR .22 presentation interpretation and discussion of the findings 22 4.0 Introduction 22 4.1 Demographic characteristics of respondents 22 4.2 THE CATEGORIES OF SMALL BUSINESS ENTERPRISES 24 4.3 CHALLENGES FACED BY SMALL BUSINESS ENTERPRISES 25 CHAPTER FIVE 27 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 27 5.0 Introduction 27 5.1 Conclusions of the study 27 5.2 Recommendations 27 5.3 Areas for Further Research 28 REFERENCES 29 APPENDICES 31 APPENDIX 1 31 VII LIST OF TABLES Table 4.1.1 Bio-data of the Respondents 22 Table 4.1.2 shows sex of the respondent 22 Table 4.1.3 shows age of the respondent 23 Table 4.1.4 MARITAL STATUS 23 Table 4.1.6 Religions 24 Table 4.1.7 EDUCATION LEVEL 24 Table 4.2.1 Categories of small business enterprises 24 Table 4.2.2 SIZE OF THE BUSINESS AND LEVEL OF EMPLOYMENT 25 Table 4.3.1 Number of businesses with challenges 25 Table 4.3.2 CHALLENGES TO THE SMALL BUSiNESS ENTERPRISES 26 VIII LIST OF ACRONYMS SAP Structure Adjustment Program UBOS Uganda Bureau of Statistics FDI Foreign Direct Investment GDP Gross Domestics Products EU European Union OECD Organization for Economic Cooperation and Development MGA Mutual Guarantee Associations USSIA Uganda Small Scale Industries Association PSF Private Sector Foundation EAC East African Community CVI Content Validity Index ix

ABSTRACT

The purpose of the study was to examine the contribution of small business enterprise and creation of employment in Uganda and the study was based in Owino market in Kampala. The study was guided by the specific objectives and these included, analyzing the categories of small business enterprises, examining the challenges facing small business enterprises, seeking for solutions to the challenges facing small business enterprises. The study employed research design and sample size of one hundred (100) respondents were used of which 40 will be from the hawking business and 60 in street retailing. The tools that were used in the study included; Questionnaires, Data Processing and Analysis. Some of the study finds majority revealed that majority of the categories of the businesses were tied shop businesses that operated at a small scale, they were managed by their own boss and support staffs, had their source of startup capital from own savings, and did not provide opportunities to a great number of the people since they mostly employed less than ten people compared to the labor force available. Small business enterprises mostly improve incomes and welfare of individuals, from their businesses knowledge or skills and business partners, competition for jobs associated with social responsibilities encouraged most business people to start businesses, the kind of activities engaged in by the businesses have enabled them to absorb labor force through the provision of employment opportunities. Some of the recommendations are; Small business enterprise need to employ professionals to manage their businesses this will improve on their performance since these will establish and strengthen the internal controls as regards financial resources to reduce on mismanagement and misappropriations. It is through this that small businesses whose startup capital is based on own savings will easily access financial institutions for loans to enhance their business operations towards employment provision. Government should improve on the infrastructural development in form of huge stores managed by the government to be rented at subsidized amounts in the favor of the business fraternity.