Mindset training improves business survival chances—study

____________

Training focused on mindset and personal agency, not just financial literacy or technical skills, can lead to significant improvements in revenues, profits, and business practices, a new study says.

Personal agency is where a person exercises individual control and autonomy in decision-making and actions. It is when individuals perceive themselves as the source of agency and display intrinsic motivation for self-initiated and self-directed behaviour.

According to the study, the entrepreneurs who received mindset-based training demonstrated notable improvements in income levels, customer retention, financial tracking, and overall confidence in running their enterprises, even before receiving additional capital injections.

The research, which covered over 800 entrepreneurs across two regions in Uganda, evaluated the impact of a new training model that blends mindset development with traditional business support.

The preliminary findings of the study, conducted by Johns Hopkins University in partnership with Enterprise Uganda and the Investors Club, were unveiled during a stakeholder briefing at the Protea Hotel in Kampala city on Wednesday, May 21, 2025.

The groundbreaking initiative led by Johns Hopkins University’s SEE Change programme is now redefining how micro, small, and medium-sized enterprises (MSMEs) are supported in Uganda.

Speaking about the study, Self-Empowerment and Equity for Change (SEE Change) Initiative at Johns Hopkins executive director Dr Anita Shankar emphasised the core philosophy behind the programme.

“While many understand the importance of a positive or growth mindset, few know how to build it. That’s the gap we are filling through evidence-based training that equips entrepreneurs with the inner tools to take control of their business journey,” he said.

Shankar noted that SEE Change has already trained more than 300 facilitators across 24 countries and reached over 140,000 individuals globally. In Uganda, the programme is gaining traction for its unique "inside-out" approach that starts with personal transformation before addressing business strategy.

Enterprise Uganda's head of Innovation and learning, Ronald Mukasa, highlighted the significance of the study’s early findings. “What we’re seeing is that mindset training doesn’t just change how entrepreneurs think—it changes how they run their businesses,” Mukasa said. “From better decision-making to more resilient planning, the results are promising. We believe this model has the potential to transform enterprise development in Uganda.”

Investors Club Ltd managing director, Martin Muhwezi, reiterated the broader economic implications. “It’s well understood that MSMEs are the engine of economic growth. That’s why this innovation—embedding personal agency into business training—is such a critical step forward,” he said.

Muhwezi explained that for years, business support in Uganda has largely focused on financial literacy and technical training. “Now, we’re integrating personal development into business development. The same mind that manages personal finances is the one steering the business. If that mind is limited or unclear, so will be the outcomes”.

He further noted that this shift offers a more sustainable model for both policymakers and MSME owners. “For governments and development partners, this approach builds resilience and accountability from within. And for entrepreneurs, it provides practical, transformational tools not just to grow a business, but to grow as individuals capable of leading that growth.”

The final report of the study is expected to be published later this year and could shape the future of MSME support models, not only in Uganda but across emerging economies where entrepreneurship is critical to livelihoods and national development.