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

Esther K. Ishengoma and Robert Kappel (robert.kappel@uni-leipzig.de)

No 78, GIGA Working Papers from GIGA German Institute of Global and Area Studies

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.

Keywords: small enterprises; informal sector; growth; manufacturing; Uganda; productivity; business services (search for similar items in EconPapers)
JEL-codes: D21 E26 G38 H25 L25 L26 L6 O12 O14 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gigawp:78

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