Small and medium-sized enterprises (SMEs) play a vital role in driving inclusive socio-economic growth across Africa. These businesses are foundational to national economies and significantly contribute to equitable development.
Uganda, according to UNCTAD, has over 1.1 million micro, small, and medium enterprises (MSMEs), which account for 80% of the country’s GDP and 90% of its private sector. These enterprises play a significant role in the country’s economy, contributing to balanced and sustainable growth, employment generation, development of entrepreneurial skills, and export earnings. However, the majority of companies do not prioritise digitalisation and typically rely on outdated business methods.
Perceived challenges include:
- Costs: SMEs often view digitisation as expensive, involving software, hardware, training, and maintenance costs.
- Technical expertise: SMEs typically lack the in-house technical skills for successful digitisation.
- Cyber security: Concerns about cyber threats and data losses make SMEs hesitant.
- Connectivity: Reliable, high-speed internet is essential for digitisation.
- Options overload: The variety of solutions and providers can be overwhelming.
- Regulatory environment: The regulatory environment continues to be a barrier for many.
These challenges can be addressed with three basic solutions:
- The right technology partner
- A stable network environment
- An incremental approach to digitisation
In an online world, companies resisting digitisation risk losing their competitive edge. The first step to staying ahead of the curve for SMEs in Uganda is partnering with a technology partner like Liquid Intelligent Technologies (Liquid).
With the only Azure Stack hub in Uganda, Liquid provides SMEs with cost-effective access to high-security local cloud solutions, including compliance with local data regulatory requirements – all while running latency-sensitive business applications efficiently.
Why Weekends No Longer Mean Stalled Business - dfcu’s Weekend Agent Float Loan Is Transforming Uganda.This flexible adoption model also enables real-time business continuity, so SMEs can concentrate on running their operations secure in the knowledge that they’re protected against potential business interruptions. Reduced hardware costs, optimised resource allocation, and greater efficiencies are some of the further benefits for SMEs looking to embark on the digital transformation journey.
A firm foundation is essential, starting with a stable network environment. Reliable bandwidth ensures minimal downtime and a seamless customer experience. Top-notch security is key, protecting sensitive data and complying with Uganda’s strict data protection laws. As hackers often target smaller businesses, implementing robust cyber security measures is crucial.
An incremental approach to digitisation helps manage costs and minimise disruption. This could entail starting with core processes like email, an online store, and digital invoicing, then gradually adding solutions like CRM systems, sales platforms, inventory management, and a website as the business grows.
Understanding and demystifying the digitisation process is key for SMEs. The primary driving factor should be enhancing the customer experience. Having a strong technology partner can help in navigating you on this journey to success.
The Writer is Michael Mukasa, CEO, Liquid Intelligent Technologies Uganda.