Financial experts have on Wednesday tipped Small and Medium Enterprises (SMEs) on entrepreneurship financing and investment post Covid-19 era.
This was during the Prudential Knowledge Series, the first in 2022, on discussing financing and investment for small businesses at Imperial Royale Hotel.
The Prudential Knowledge Series are Prudential Uganda’s thought leadership conversations aimed at bringing attention to key issues that influence and affect the well-being of Ugandans.
Accordingly, so far, the Knowledge Series have held five editions looking at investing and sustaining small businesses, understanding agri-business, education in the new normal, and how to save for short & long term. The series have so far reached and impacted over 5000 Ugandans.
Giving a key note speech, former minister of Finance, Maria Kiwanuka tasked the sector regulators to regulate in a way that improves, sustains and leads to the development of SMEs, saying that affordable financing for viable sustainable SMEs and projects is very important when dealing with financing.
“If we look at the existing modes of financing, the banks, Saccos, family and friends among others, why don’t we have affordable financing whether loans, partnership or grants for SMEs.”
According to the World Bank, SMEs play a major role in developing countries, accounting for about 90% of businesses and more than 50% of employment worldwide; formal SMEs contribute up to 40% of national income (GDP) in emerging economies.
Uganda is ranked as the world’s most entrepreneurial country by Global Entrepreneurship Monitor (GEM), recording the highest youth entrepreneurs with 55.6 percent of the youth population involved in new or established businesses.
John Walugembe, the executive director of Federation of Small and Medium Sized Enterprises(FSME), said despite SMEs being run informally, it’s where the focus by financial players should be concentrated.
“This is where the money is. Micro business is where future growth is, the focus should be put here,” he said.
Ugandan enterprises urged to explore regional oil and gas opportunitiesTetteh Ayitevie, the chief executive officer at Prudential Uganda, said with Uganda’s ranked as the world’s most entrepreneurial country, the potential for growth is why Prudential has a lot of faith in Uganda and the continent at large.
He added, “We see the youthful energy that is abound in Uganda, a young working population, that is technologically savvy and has a thirst to find new knowledge that will enable them to be wealthier and guarantees a sound financial future for them.”
He revealed that as a company, they are rethinking how SMEs can leap from surviving to thriving in this economy through financing and investment.
Tonny Otoa, the CEO Stanbic Incubator noted that business discipline is key in running SMEs, saying that how SMEs are run and managed determines a lot financing.”
Dr Gudula, Naiga Basaze the MD Gudie Incubation Center advised SMEs to be part of a trusted saving scheme such as women financing clubs if they are to get financing.
She said commercial banks tend to give money to those who demonstrate availability of money and they will require security.
Maxima Nsiimenta, the CEO Livara Cosmetics, advised SME owners to always seek knowledge from other who are already in the business.
“Look at other people that are doing what you are doing, interest yourself, ask for knowledge, and learn how it’s done,” she said.
