Business 12 September 2026 Daily Monitor (Uganda)
Uganda Government Warns Against Substandard Business Advice Hurting Local Enterprises
The Ministry of Trade, Industry and Cooperatives has expressed concern over the proliferation of unqualified consultants providing poor business development services, which is hindering the growth and survival of Ugandan enterprises. Many businesses are reportedly failing due to inadequate advice on crucial aspects like financial literacy, market access, and standards. Source: https://www.monitor.co.ug/uganda/news/national/govt-warns-poor-business-advice-hurting-ugandan-enterprises-5592640
Ugandan businesses are facing significant challenges due to a lack of access to high-quality and coordinated business development services (BDS). The Ministry of Trade, Industry and Cooperatives has highlighted that many promising business ideas are failing to materialize into viable enterprises, and existing small and medium-sized businesses are struggling to scale up.
A major contributing factor, according to Johnson Abitekaniza, Assistant Commissioner for Training and Business Skills Development, is the influx of uncertified and underqualified consultants. These individuals often charge lower fees but deliver substandard advice, leading to business stagnation and failure. BDS encompasses vital non-financial support such as training, mentorship, business planning, financial literacy, and market linkage facilitation.
“If businesses don’t get appropriate and sustainable BDS, they die,” Abitekaniza stated, noting that this is why many businesses fail to reach their first anniversary. “You may have the equipment, but you lack the lifeblood that makes things work.”
Statistics presented at a recent stakeholders’ meeting revealed a stark reality: 66 percent of businesses in Uganda collapse within their first year, and up to 80 percent of start-ups falter within three years. This highlights a critical gap in essential technical support, beyond just capital and equipment.
To address this, the ministry is collaborating with networks like the United Business Support Professionals (UBSP). The UBSP aims to professionalize the BDS sector, improve quality assurance, and promote ethical standards among service providers. Kenneth Nkumiro, chairperson of UBSP, acknowledged the fragmented nature of the sector and the weak capacity of many providers, stating, “The BDS ecosystem has been fragmented with weak capacity of providers, yet you can’t give what you don’t have.”
Efforts are underway to build the capacity of BDS providers to ensure they adhere to national standards and deliver impactful services, particularly for businesses aiming for export markets and agro-industrialization. Increased awareness among consumers about seeking services from qualified professionals is also deemed crucial for enhancing the survival and growth prospects of Ugandan enterprises.