Most Ugandan businesses don’t get to celebrate their first birthday, no matter the size no matter the niche many young and new Ugandan business don’t see their first birthday. In today’s article we here to pin point some of the reasons why many Ugandan businesses still fail and this could change the way Ugandans perceive business and could change the narrative.
Purpose.
Most young entrepreneurs have no major aim as to why they start business, many are bored graduates that want to be recognized as busy individuals, there is no clear purpose of a specific type of business that they open or start. Is the business a problem-solving business? life style kind of business, production, service delivery name it.
Target market.
Many businesses still fail because young entrepreneurs don’t think about who their target market is and what power does the market have in order to support the business. Is the target market realistic and capable of sustaining the business in the long term? Can the target market afford the products or services.
Product or service.
Many young entrepreneurs love to jump on different trendy business without studying the dynamics of that particular business. Production or service delivery? What’s the cost of production and what percentage of profit does the business make on a single item sold. Many entrepreneurs sell or provide items that are not costly controlled which drags the business in long term loss. Entrepreneurs should study the markets products and the cost of production in order to predict sales and revenue for at least six months of operating the business.
Government policies
Is the business legally accepted in the community? Is the business eco-friendly, sustainable is it tax friendly.
Well business in Uganda would thrive if entrepreneurs got much more realistic with type of business they venture into, forecast sales, cost of production, profit margines, cost controls, market analysis and then business will thrive.
Problem solving innovations have proven to be number one business ideas however many young entrepreneurs prefer embracing the titles of CEO, Director and many others rather than coming up with meaningful sustainable ideas that solve day to day business that matches the target market.
Last but not least is culture and technology, if entrepreneurs in Uganda used the growing technology to match the cultural dynamics of societies they would have thriving business, many pan African would prefer goods, services that are not doing away with their cultural heritage than something very foreign that will with time lead to the loss of authenticity.
Author
ISAAC MWEBAZEMUKAMA.