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

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  • Ishengoma, Esther K.
  • Kappel, Robert

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.

Suggested Citation

  • Ishengoma, Esther K. & Kappel, Robert, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Papers 78, GIGA German Institute of Global and Area Studies.
    • Handle: RePEc:zbw:gigawp:78
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    Cited by:

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    2. Destradi, Sandra, 2008. "Empire, Hegemony, and Leadership: Developing a Research Framework for the Study of Regional Powers," GIGA Working Papers 79, GIGA German Institute of Global and Area Studies.
    3. Richard Akisimire & Muhsin Salim Masoud & Mutahyoba D Baisi & Laura A Orobia, 2016. "Board Member Age Diversity and Financial Performance of Manufacturing Firms: A Developing Economy Perspective," Journal of Economics and Behavioral Studies, AMH International, vol. 8(5), pages 120-132.
    4. Peetz, Peter, 2008. "Discourses on Violence in Costa Rica, El Salvador, and Nicaragua: Youth, Crime, and the Responses of the State," GIGA Working Papers 80, GIGA German Institute of Global and Area Studies.
    5. Lawrence M. Lekhanya & Roger B. Mason, 2014. "Selected Key External Factors Influencing the Success of Rural Small and Medium Enterprises in South Africa," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 331-348.
    6. , Aisdl, 2019. "Developing a sustainable financing model for SMEs during the organizational life cycle in Uganda," OSF Preprints 2s8k9, Center for Open Science.
    7. Huhn, Sebastian, 2008. "Discourses on Violence in Costa Rica, El Salvador, and Nicaragua: Social Perceptions in Everyday Life," GIGA Working Papers 81, GIGA German Institute of Global and Area Studies.
    8. Corti Paul Lakuma & Robert Marty & Fred Muhumuza, 2019. "Financial inclusion and micro, small, and medium enterprises (MSMEs) growth in Uganda," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-20, December.

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    More about this item

    Keywords

    small enterprises; informal sector; growth; manufacturing; Uganda; productivity; business services;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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