Running a successful SME in Uganda,the role of SMEs in Uganda.

 RUNNILNG A SUCCESSFUL SME IN UGANDA,THE ROLE OF SMES IN UGANDA.

Small and Medium-sized enterprizes SMEs or Small and Medium sized businesses SMBs are businesses whose personnel and revenue numbers fall below certain limits.The abbreviation SMEs is used by international organisations such as the World Bank,the OECD,the European Union,the United Nations and the World Trade Organisation Wikipedia.

In Uganda,Micro,Small and Medium Enterpises sector plays a crucial role in the economic growth of Uganda with its GDP contribution standing at over 70% and its employment and job creation rising to 90%.https:/www.mtic.go.ug>Ms

SMEs are resiponsible for driving innovation and competition in many economic sectors.They drive the economy and make the revenue heavier.They are a source of ambition and new talent exploitati on(innovations) directing the future of Uganda.

There are different types of Small and Medium-sized Enterprises (SMEs),each with their own distinct characteristics.The most common types of SMEs are sole proprietorships,partnerships,limited Liability Companies LLCs and S Corporations.

Sole proprietorships are owned and run by one individual.Partnerships may be owned by two or more individuals.LLCs are a more formal type of Business Organisation that offers Limited Liability Protection to its owners whereas S Corporations are similar to LLCs in that they offer limited Liability Protection,but have special tax status under the Internal Revenue Code.

Small and Medium-sized enterprises have low start up costs.In Uganda with the cheapest option being starting a Business Name.Reservation of a Company Name costs as little as 20000shs and Stamp Duty of 35000 to icorporate a company with norminal share capital.One may easily start with capital as little as 100000 shs per month.Thus,one can start a company with a capital as little as 300000shs.

Another advantage of starting up SMEs is that they can be run flexibly.They may not need a lot of employees and can even be run by the owner themselves.One may easily know all the clients and can easily handle them including opening at favouable hours convenient for customers.

For one to have a successful SME,there are a number of key factors one needs to look at.

Is the Business viable Is it worth it starting up the project.How much will it cost you and are you able to pay Do you have the knowledge to sustain such a business and can you resource such a vision Is it a marketable idea How long will it take to take off

First and foremost,before setting up a business,you need to do market research.Look through businesses of the same nature and see how they are doing.Are they doing well and what locations work better What are the tax rates How much do they need for capital Is the risk worth it Is it necessary to have an employee Do you need a loan from the bank Who are your fianancers or partners

One needs to be organized,focused,a good manager,a problem solver,an initiator and hardworking.Yes, to be successful,there are sacrifices to be made.A business is not built on commitment and time,effort put in.

Also,one needs to be very creative.Innovation is the way forward.Brainstorm new ideas and implement them.One can also follow the example of other exisisting businesses.You could choose to set up

There is need to keep detailed Rewards.One needs to purchase ledger books,receipt books,time recording books and visitors books.These help one to keep a record of the Business cash flows and events are running to avoid bankruptcy.These days,some people use software purchased online for example Quick Books,Online,Xero,Fresh Books,Quick Books,Solopreneur and WAVE.

To avoid crisis,businesses keep a record of their businesses in cloud in case of fire out break,computer viruses and other misharps.

Know your competition.Go buy something as a customer and annalyse their methods.Ask customers for feedback about them and do everything it takes