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Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda

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  • Esther K. Ishengoma

    ()
    (Faculty of Commerce and Management, University of Dar es Salaam, Tanzania)

  • Robert Kappel

    ()
    (GIGA German Institute of Global and Area Studies)

Abstract

Ugandan micro- and small enterprises (MSEs) still perform poorly. The paper utilizes data collected in Uganda in March and April 2003 to analyze the business constraints faced by these MSEs. Using a stratified random sampling, a sample of 265 MSEs were interviewed. The study focuses on the 105 manufacturing firms that responded to all questions. It examines the extent to which the growth of MSEs is associated with business constraints, while also controlling for owners’ attributes and firms’ characteristics. The results reveal that MSEs’ growth potential is negatively affected by limited access to productive resources (finance and business services), by high taxes, and by lack of market access.

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Bibliographic Info

Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 78.

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Length: 28 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:gig:wpaper:78

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Keywords: small enterprises; informal sector; growth; manufacturing; Uganda; productivity; business services;

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  13. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The impact of commodity price changes on rural households : the case of coffee in Uganda," Policy Research Working Paper Series 4088, The World Bank.
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