Ugandan startups urged to improve financial management, compliance
Möbius said poor financial practices remain one of the leading causes of business failure among young enterprises in Uganda.
Laura Althaus-Mugagga, the co-founder of StartHub Africa and one of the project implementers. This was during the organisation’s eighth anniversary celebrations held in Kampala on Friday. (Photos by John Masaba)
________________
StartHub Africa has called on Ugandan startups and small businesses to strengthen their financial management and compliance systems to enhance sustainability and attract investment.
Speaking during the organisation’s eighth anniversary celebrations held in Kampala on October 24, 2025, StartHub co-founder Matthias Möbius said poor financial practices remain one of the leading causes of business failure among young enterprises in Uganda.
“Many promising ventures struggle to keep accurate records, meet tax obligations, or design proper internal systems to support long-term growth,” Möbius said.
“Our goal is to make it cheaper and easier for founders to understand their finances and have their books and taxes in order.”
He noted that while most startups cannot afford professional accountants or chief financial officers, they can access expert-level financial support through tailored accounting and compliance services at affordable rates.
Laura Althaus-Mugagga, the co-founder of StartHub Africa and one of the project implementers. This was during the organisation’s eighth anniversary celebrations held in Kampala on Friday. 
The initiative, according to Möbius, aims to help startups maintain transparency, earn investor confidence and position themselves for future expansion.
Poor compliance
Sector experts have long warned that limited financial literacy and poor record-keeping hinder Uganda’s growing startup ecosystem.
Many young enterprises collapse within the first three years due to weak internal systems, cash-flow mismanagement, and failure to meet statutory obligations such as tax remittance.
According to Möbius, these gaps is crucial if Uganda’s innovation ecosystem is to mature and compete regionally.
“Small businesses are the backbone of job creation. Helping them formalise and manage finances better is key to sustainable entrepreneurship,” he said.
The call came as StartHub celebrated eight years of empowering young entrepreneurs across East Africa through training, incubation and mentorship.
Since 2017, the organisation says it has equipped nearly 5,000 entrepreneurs and students with business skills and supported over 1,000 ventures to access funding.
Building from the classroom
Beyond business incubation, StartHub has turned university campuses into innovation hubs, including at Mbarara University of Science and Technology, where students have developed market-ready products such as herbal toothpaste and eco-friendly food solutions.
One of the beneficiaries, Kisaaliita Dennis, co-founder of Spark Herbal Toothpaste, said the mentorship transformed his idea into a commercial success. “What began as a concept is now on shelves. They’ve been instrumental in our growth journey,” he said.
Youth for the future
With over 70% of East Africa’s population under 30, StartHub says building entrepreneurial capacity and ensuring compliance is essential for inclusive growth.
“StartHub Africa’s work is not just about startups,” Möbius said. “It’s about helping young Africans build resilient, transparent, and scalable businesses that can power the region’s future economy.”