[UAH] Limited access to credit limiting SME growth - report

Limited access to credit limiting SME growth - report

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Banking Hall

newvision

By Samuel Sanya

Lack of access to credit has been ranked as the top challenge by entrepreneurs in the small and medium enterprise sector as commercial bank loan rates soar beyond reach.

The report by Regus indicates that limited access to credit ranks above red tape, current economic conditions, domination of large corporates and lack of market information and managerial skills at 86% relevance to entrepreneurs.

Despite this, 92% of Ugandan entrepreneurs are determined to continue in business, recruiting more sales staff this year and boosting the growth momentum in the economy.

The unwavering entrepreneurial spirit in East African small and micro businesses is higher than the global average of 85% after more than 26,000 business managers in 90 countries were reviewed.

Over two fifths of East African entrepreneurs also cited the state of the economy as a serious hindrance. 86% regard lack of access to credit as the biggest deterrent to setting up a business today.

Red tape comes second at 70%, lack of government support at 57% and market domination by large corporations came last at 57%.

"I agree, official mechanisms have not done anything much for my business. But if you want to be a successful entrepreneur, you soon find that nothing comes easy," said Toshi Kalema, a Consultant for Zinger Solutions.

"It is a white knuckle ride and you have to have nerves of steel. That is why it is usually the entrepreneurial community that generates growth out of an economic downturn, while the big boys run for cover," he said.

SMEs contribute between 40% and 50% of Gross Domestic Product, and are the engines of growth accounting for up to 99% of Ugandan businesses.

Globally, 50% of jobs are generated by SMEs, yet, in spite of this, they attract just a tiny proportion of overall investment.

The Association of Certified Chartered Accountants (ACCA) recently signed a memorandum of understanding with Enterprise Uganda to train entrepreneurs in the running the finance arm of small businesses.

Commercial bank loan rates average at 24%, out of range for many businesses. Reductions to the benchmark Central Bank Rate are expected to bring borrowing rates down.

World Bank ranks Uganda's business environment at 120th out of 183 countries, the majority of businesses are aged between one and five years, with less than 10% of the enterprises having operated for more than 20 years.

For every business created nearly another is closed, leading to a high SME mortality rate.

Many SMEs are started as sole proprietorships and operate on a lean staff without accountants and finance, which undermines their growth and profitability.

Barbara Ofwono of Victoria schools notes that she was under-pricing school fees and almost running out of business until she hired an accountant. She says hiring professionals cuts operational costs and delivers larger margins.

"Most SMEs are reactive and not proactive. With proper tax planning, an SME legally does not pay tax for up six years through capital deductions and Value Added Tax refunds," noted Uganda Revenue Authority's Sirage Kanyesigye at an ACCA forum in Kampala recently

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AROMA PATRICK-THE TRUE SON OF UGANDA!!!THIS IS MY COUNTRY!!!THIS IS MY MOTHERLAND-THE PEARL OF AFRICA DOES NOT BELONG TO THE MAFIAS ALONE,I WHO IS WALKING IN THE SHADOWS OF DEATH DAILY  AND LIVING  ON BORROWED TIMES  UNDER GOD'S PROTECTION  SINCE I SHOULD HAVE BEEN DEAD,BURIED SIX FEET UNDER-I,THE UNWANTED AND HATED,THE MOST VILIFIED AND SABOTAGED,THE DOWNTRODDEN AND CRIPPLED,THE INNOCENTLY DELIBERATELY TORTURED AND PERSECUTED IS ALSO A SHAREHOLDER AND A STAKEHOLDER WITH FULL RIGHTS AND FREEDOMS TO PARTICIPATE IN ITS DEVELOPMENT AND TRANSFORMATION IN ALL SECTORS AND SPHERES-NO GOING TO EXILE,NO RETREAT AND NO SURRENDER TO THE MAFIAS!!!THE END MUST SET ALL UGANDANS FREE AND CREATE A BETTER LIFE FOR ALL!!! "THE RIGHT TO BE TREATED WITH RESPECT AND COURTESY,THE RIGHT TO LIVE AND THE RIGHT TO DIGNITY ARE NOT FAVORS TO BE BESTOWED BY ANYBODY:THEY ARE THE BIRTH RIGHT OF EVERY HUMAN BEING"DECLARES PRESIDENT YOWERI MUSEVENI AT THE BEGINNING OF HIS BUSH WAR IN 1981!!!page 182-The Minds of Achievers-The Seeds of Greatness by GRACE MUSIIME MUGYENZI,Get a copy of this book at Uganda Book Shop-Opposite Communication House,Kampala.

MANAGING DIRECTOR

CAMKWOKI INVESTMENTS LIMITED

Dealers in General Merchandise, Agro Input and Chemicals and Agro- Processing

LIRA BUS PARK  SHOP NO:57/ LABOURLINE TRADING CENTER AND BAL-PE MARKET ON ALEBTONG-BARR ROAD 

P.O Box 268-LIRA,TEL:+256-782-658-458

 A VICTIM OF APARTHEID ETHNICALLY ENTRENCHED GENOCIDAL CUM TERRORIST MAFIA DICTATORSHIP OF MUSEVENI,SUPER -BLOODY MAFIA STRATEGIST AMAMA MBABAZI,THE DEADLY SAM ENGOLA/MUSEVENI LANGO HENCHMAN  AND THEIR MAFIAS OPPOSITION/LANGO MAFIA  NETWORKS PLUS A VICTIM OF NORTHERN UGANDA NRM GRAND HUMAN RESOURCE DESTRUCTION POLICY OF ITS POTENTIALS AND GRAND NRM ECONOMIC SABOTAGE PLANS TO KEEP THE NORTH PERPETUALLY IN POVERTY/TURN US INTO BEGGARS,A NORTHERN UGANDA GENOCIDE SURVIVOR,MY RIGHT LEG BROKEN ON 24/JUNE/2001 IN  FRONT OF SAM ENGOLA LIRA HOTEL IN THE PRESENCE OF PRESIDENTIAL GUARD BRIGADE WHO PROTECTED MUSEVENI IN LIRA WHILE CAMPAIGNING FOR SAM ENGOLA THAT DAY-SURVIVING DEATH MIRACULOUSLY DUE TO GOD'S PROTECTION  AND I ESCAPED SEVERAL MURDER ATTEMPTS ON MY LIFE  RIGHT FROM 2000 TO DATE-POLITICALLY PERSECUTED,ECONOMICALLY SABOTAGED IN BUSINESS AND MY NGO PROJECTS, DENIED ALL THE OPPORTUNITIES IN LIFE/ EDUCATION-EXPELLED FROM MAKERERE UNIVERSITY IN FOURTH YEAR  WHILE PURSUING BACHELOR OF LAWS  AND COMPLETELY FRUSTRATED IN TERMS OF PERSONAL DEVELOPMENT,SOCIALLY DISLOCATED -ISOLATED AND LIVING IN PAINED PHYSICALLY,MENTALLY,EMOTIONALLY WHILE SPIRITUALLY FOUGHT WITH NRM EVIL SPIRITS(MAYEMBES/KIFARO) AND CULTURALLY UPROOTED BECAUSE OF OPPOSING/DISAGREEING WITH MUSEVENI & HIS NRM MAFIA POLITICAL  PARTY,HAILING FROM A WRONG REGION/ TRIBE/CLAN .I PATRICK AROMA TO THE BEST OF MY KNOWLEDGE AFFIRM AND CONFIRM THAT WHAT I HAVE STATED HERE IS THE TRUTH AND THE WHOLE TRUTH NOTHING BUT THE TRUTH.CAN YOU IMAGINE THIS BEING DONE TO YOU OR YOUR SON BY YOUR OWN GOVERNMENT??? A MAFIA GOVERNMENT IN MY OWN MOTHERLAND WHO HATES TO SEE MY PROGRESS, PERSONAL DEVELOPMENT AND PROSPERITY -IF THIS IS NOT APARTHEID THEN WHAT IS IT ??? FROM 1999-2004 I WAS ON TEL:NO 0772-621-761 which MTN MADE IT IN ACCESSIBLE/BLOCKED AND LATER SOLD TO ANOTHER PERSON BEFORE TAKING ON 0782-658-458.ALL MY COMMUNICATIONS AT THAT MATERIAL TIME CAN BE ACCESSED ON 0772-621-761. 

MY FIFTY YEARS DEADLY JOURNEY TO THE GOLDEN TRAGEDIES OF OUR MOTHERLAND-WHY I NEVER CELEBRATED THE  JUBILEE!!!

1962-1975-1 was not yet born

1976-1979-IDI AMIN MURDERED MY UNCLES THE LATE HON: AROMA MARTIN,EMOR BEN AND MY FATHER THE LATE PETER OGWAL 

1980-1986

WE SURVIVED ON RELIEF FOOD (YELLO POSHO +BEANS) under very difficult conditions as orphans though we had plenty of cattle that was eventually stolen by NRM/UPDF

1986-2000 My Childhood Destruction

NRA/UPDF STOLE ALL OUR CATTLE WHEN I WAS LOOKING AFTER THEM AND RAPED MY COUSIN SISTER IN MY PRESENCE

Museveni SURAMBAYA FIGHTER JETS BOMBS OUR HOME VILLAGE-FIVE KILOMETERS FROM LIRA TOWN AND I SURVIVED AS MANY INNOCENT CIVILIANS WERE KILLED PLUS LIVE STOCKS

Alice Lakwena War BEGAN that really exposed us to a lot of dead bodies bombed,shot and cut with matchetes LYING LIFELESS FROM OUR VILLAGE TO LIRA TOWN

Gen: David Tinyefuza OPERATIONS NORTH where even Children were not spared KIBOKO-we were thoroughly caned by UPDF as they arrested the 18 famous Northern Uganda Politicians at that material time

2000-2012

NRA Mafias start my PERSECUTION at Makerere University

Breaking of my leg

Expulsion from Makerere

Museveni STATE HOUSE PLUS THEIR MAFIA NETWORKS ON MY HOT PURSUIT DEVISING ALL STRATEGIES TO MURDER ME

 2012 ON WARDS

• STILL SURVIVING THE MAFIAS,LIVING IN FEAR AND PAIN,BEING HUNTED LEFT,RIGHT AND CENTER BY MAFIAS PLUS THEIR NETWORKS.
• ON 29/JANUARY/2004 DURING RADIO ONE EKIMEEZA TALKSHOW AT CLUB OBBLIGATTO I REVEALED THE PRESENCE OF MUSEVENI CHEMICAL AND BIOLOGICAL WEAPONS OF MASS DESTRUCTION BOUGHT FROM NORTH KOREA AND IRAN-THAT WAS HIDDEN UNDER GULU AIRPORT HUNKER AND THE UNITED NATIONS GRABBED,DESTROYED AND TOOK AWAY THE REMAINING ONES TO UNKNOWN DESTINATION-THIS IS ONE REASON WHY PRESIDENT MUSEVENI AND HIS MAFIAS CAN NEVER-NEVER-I SAY NEVER FORGIVE ME SINCE I EXPOSED AND SPOILED THEIR DEADLY DESTRUCTIVE AGENDA FOR NORTHERN UGANDA!!!

ON-TOP OF THE ABOVE,NO TERM LIMITS PROMOTING LIFE PRESIDENCY, CREATING HOPELESSNESS, UNCERTAINTY & CONSOLIDATING APARTHIED PLUS TRIBALISM, THERE IS MASSIVE POVERTY,UNEMPLOYMENT,HUMAN RIGHTS ABUSES,IMPUNITY,MURDERS,INEQUALITY,GENOCIDE,DISUNITY IN THE COUNTRY,ETC