Overview:
Small and medium enterprises contribute more than 75 percent of Uganda's GDP but face high failure rates. A new cohort of graduates in Mbarara is now fighting back, using expert mentorship and corporate governance training to build the next generation of resilient Ugandan companies.
MBARARA, Uganda — Dozens of entrepreneurs in western Uganda are celebrating a significant milestone after graduating from a rigorous business development scheme aimed at reversing the country’s high rate of startup failure.
The Uganda Development Bank Ltd, the nation’s primary development finance institution, has discharged a new cohort of 32 small business owners in Mbarara District. The group completed an intensive two-month training program designed to make their ventures investor-ready.
The initiative, known as the Enterprise Development Program, is a direct response to a sobering statistic: two out of every three startups in Uganda collapse within their first year of operation.
Joshua Allan Mwesiga, the bank’s director for strategy and corporate affairs, told graduates that small and medium enterprises (SMEs) are the backbone of the economy, providing three-quarters of the country’s gross domestic product.
“They account for about 90 percent of Uganda’s private sector,” Mwesiga said during the ceremony at the Makerere University Business School campus in Kamukuzi. “However, many face barriers like lack of collateral and general business unreadiness.”
The program, run in partnership with Makerere University Business School’s Entrepreneurship Centre, offers a “hybrid” learning model. It covers everything from financial bookkeeping and corporate governance to risk management and marketing.
For participants like Muhanguzi Emmanuel, 40, the training offered a digital lifeline. His business, Jurassic World Vegetable Enterprise, produces organic insecticides.
“The trainers introduced us to software that helps track capital inflows and outflows and automatically generates financial reports,” Muhanguzi said. “These are practical tools I did not even acquire at university.”
Another graduate, 32-year-old coffee farmer and apiary owner Mumpe Julian, said the course forced her to rethink the common habit of “copy-pasting” business ideas.
“The case studies shared showed how resilience helps businesses survive,” she said. “It helped us appreciate that it is never too late to start or restart.”
The Mbarara cohort is part of a wider national rollout. To date, the bank has incubated more than 300 businesses across cities including Gulu, Mbale, Arua and Fort Portal. By partnering with agencies such as the Uganda Revenue Authority and the National Social Security Fund, the program aims to bring informal businesses into the regulated fold, making it easier for them to secure formal credit in the future.