'Group purchases will save Ugandan SMEs from collapse'
With her PhD, Nansereko plans to transition from being a mere doctoral researcher to a recognised expert and an advocate for micro and small enterprises leveraging purchasing as a core mechanism for sustainable development.
Nansereko's model helps female small business owners to sustain their businesses. (Credit: Ritah Mukasa)
Racheal Nansereko Kabuye
Globally, Uganda ranks top among the most entrepreneurial countries. According to the Global Entrepreneurship Monitor (GEM), 28% of adults own or co-own a new business, but many of these ventures reportedly collapse before their first birthday. In a competitive world of small and medium-sized enterprises (SMEs), adopting effective purchasing strategies is one of the keys that will unlock the sustainability of the business.
For five years, Racheal Nansereko Kabuye, a procurement specialist, has been investigating this trend and attributes it to poor management practices among other issues.
Nansereko is set to graduate with a Doctor of Philosophy in Business Administration (Procurement Management) from Nkumba University on October 25, 2025.
Her study analysed the contribution of purchasing management practices to the growth of micro and small enterprises in Uganda. She focused on micro and small restaurants owned by women in Kampala Capital City Authority (KCCA) markets.
Her study focused on four dimensions: Purchasing management practices, financial management, entrepreneurship intentions and enterprise growth of micro and small restaurants.
On why she chose that area of study, Nansereko says: I was struck by the significant number of micro and small restaurants in Kampala that had not seen growth despite having operated for over five years.
She realised that restaurateurs used non-cooperative purchasing. Here, there was competition between buyers and sellers with no external rules that enforced co-operation. Yet, this practice was not giving them the best value to grow their businesses further.
During her research, she found out that restaurant owners bought food items daily, and this purchasing was correlated with financial management, which had a positive relationship with entrepreneurship intentions.
To Nansereko, individual purchasing was not helping small restaurants to grow.
She, therefore, developed a SAGP (Sustainable Adoption of Group Purchasing) model that allows restaurateurs to purchase food items in a group. This enables them to increase bargaining power, share common interests and get quality food. In the end, their profits increase.
Nansereko implores restaurateurs, especially those in the KCCA markets to adopt the SAGP model to raise more money and grow sustainably.
This collaborative model transforms the fundamental economics of purchasing: when multiple businesses combine their demand into a single, substantial order, suppliers respond with significantly reduced per-unit pricing that reflects true volume discounts.
Beyond the immediate reduction in acquisition costs, this approach creates a powerful ripple effect, enhancing delivery reliability through established supply chain partnerships, extending favourable payment terms that improve cash flow management, and often unlocking access to premium products and services previously out of reach.|
The true strategic advantage lies in how this approach addresses the specific pain points of SMEs: Limited bargaining power, constrained capital for bulk purchases, and inconsistent supplier relationships.
When implemented effectively, collective purchasing doesn't merely trim expenses; it fundamentally strengthens an SME's operational foundation, freeing up vital resources that can be redirected toward innovation, market expansion, and sustainable growth. In an era where every percentage point of margin matters, this collaborative approach transforms procurement from a necessary expense into a strategic competitive advantage.
Besides, the government, through the trade ministry and other stakeholders like the Private Sector Foundation Uganda (PSFU), Uganda Small Scale Industries Association (USSIA), and Uganda Women Entrepreneurs Centre (UWEC) should implement policies and practices that foster access to finances. The policies should also build the capacities of restaurateurs on group purchasing, financial management and entrepreneurship intentions.
In addition, KCCA under market administrators should implement the recommended policies in the SAGP model and encourage restauranters to form purchasing cooperatives to leverage the benefits of the model.
Why Women?
Nansereko’s study concentrated on women because they fall under the marginalised group and as Uganda moves towards the accomplishment of the Sustainable Global Goal 2040, she sought to add valuable insights to drive women’s economic empowerment and address structural gender-based barriers to business growth in Uganda.
Challenges
Nansereko’s PhD journey has been marred with challenges. She says, striking a balance between work, family obligations, and studies took a toll on her until she sought load reduction from her faculty dean. Then, data collection did not come easily. “Micro restaurant owners are sceptical of inquiries,” she says, adding that “They saw it as a waste of time and some feared that the information was for regulatory purposes.”
However, she collaborated with market administrators and leaders to link her to the women.
Add to those financial constraints. Doctoral studies require money, which Nansereko did not have, but she thanks Nkumba University and her husband for sponsoring her. She also appreciates her supervisors, Prof. Wilson Muyinda Mande and Dr Lutaaya Sadat for the mentorship.
Education background
Nansereko grew up with her grandmother in a rural village in Mukono district. She would walk seven kilometres to and from school. The hard life motivated her to study hard and turn the family’s fortunes around.
She has a bachelor's of procurement and logistics management from Nkumba University and a master's of procurement and logistics management from the same university.
With her PhD, Nansereko plans to transition from being a mere doctoral researcher to a recognised expert and an advocate for micro and small enterprises leveraging purchasing as a core mechanism for sustainable development.
To those planning to enrol for a PhD, she says: “PhD is hard but rewarding. If you are seeking to be an expert, then commit fully. The academic world needs your unique contribution.”