UIA forms incubation centre to save SMEs

By Francis Emorut                

Uganda Investment Authority (UIA) has established a business incubation centre to address the rampant collapse of small, medium enterprises (SMEs) before they reach five years of existence.

This was disclosed by Albert Ouma, the director of SMEs at the authority.

He noted that the rate of SMEs collapsing in the country was so high and to arrest the situation there is need for an incubation centre to train proprietors of SMEs.

“In order to reduce the mortality rate of SMEs we need a business incubation centre,” Ouma told delegates attending the 10th annual business conference at Imperial Royale Hotel in Kampala on Friday.

He also advised entrepreneurs to be trustworthy in their dealings if they are to succeed in business.

Everest Kayongo, the chairman of Kampala City Traders Association (KACITA) protested the multiple taxing of enterprises through licensing citing a hotel owner who is taxed for a pool table, restaurant, lodging separately, saying this was killing business.

“How can you license a pool table, restaurant and lodging separately and yet this is one enterprise?” Kayongo wondered.

He also cried foul over taxation of a business after registration before earning.

“We go through lawyers to register a company but we are taxed before earning. We have talked about it and nothing has been done on the side of Government,” he said.

He blamed the Government for letting resources be ploughed in housing estates and arcades saying this is not good for the trade sector as it can’t be marketed to outside markets like COMESA.

“We are not supposed to go to COMESA to sell arcades and real estate but goods and services,” he said.

Alex Kamukama, the director of Akright Kakungulu Satellite city Entebbe, blamed the poor attitude of workers to the collapse of SMEs.

He argued that most employees want to steal from the employer, referring to the attitude of nfunirawa (where do I earn from?).

He advised enterprise owners to be focused and passionate about their business in order to succeed.