A part form lack of business ideas, Ugandans are bound to face a few problems in the business environment.
Power outbreaks
Business in Kampala is prone to constant power outages either as a normal black out by UMEME or a disconnection due to a default in payment. Some Kampala arcades usually have power disconnections like Majestic Plaza, Energy Center, E.M Plaza. In some arcades, there is power rationing by the landlord. This is a big problem to small business owners since most of them heavily rely on electricity power. For example those dealing in movies, music downloading and uploading, mobile phone repair, secretarial bureaus and computer graphics work. This cost small scale entrepreneurs a lot of money as usually experienced in December.
High rental fees
This is one of the biggest problems encountered while operating any business in Kampala. Landlords charge high rent fees and these are always paid within a given timeframe. Other landlords charge their rent in dollars which is inflated against the shilling. Any failure to beat the rent payment deadline fetches a fine which can be to the tune of 70000 on arcades like Majestic Plaza. Some one can try to cut on the rent cost by sharing a shop with others but some landlords are discouraging this practice.
Unfair tax and licence fees
KCCA makes it mandatory for every trader to pay a trading licence every financial year. However, the business assessment policy to determine the licence is not fair. It is only based on the nature and category of the business not on the amount the business makes. Every retail shop has to pay the same licence regardless of the size which is very unfair to those with little incomes. On top of that a gabbage fee has to be paid for by every shop which is about 9000 shs. Failure to comply with on the licence policy leads to a closure of the business and carries a fine.
Burglary
All arcades have security guards but the security of one’s property is not in the hands of the landlord. One is supposed to vigilant with his property. Many traders lose their valuables to breakages into their shops but the landlord is not liable.
Political unrests
This cannot go unnoticed if one makes a livelihood in Kampala. The city is prone to teargas and running battles between the security organs and opposition politicians. This was remarkable during the infamous Walk-To-Work protests. There fore one has to be steady in case of any outbreak of unrests to close his business premises to avoid loses and injuries.
Competition from foreigners
Some Ugandans endeavor to put into practice their business ideas but are now facing a problem from foreign owned firms. It is now a common sight in Kampala to see locals doing the same business with foreigner regardless of the size. Most notable of this is the dvd selling business in arcades like Zai Plaza where Indians tussle it out with Ugandan youths for business survival. Many Indians, Pakistanis, Eritreans and Chinese among others compete favorably with small scale businesses owned by Ugandans to the chagrin of the locals.
Read more ...
Power outbreaks
Business in Kampala is prone to constant power outages either as a normal black out by UMEME or a disconnection due to a default in payment. Some Kampala arcades usually have power disconnections like Majestic Plaza, Energy Center, E.M Plaza. In some arcades, there is power rationing by the landlord. This is a big problem to small business owners since most of them heavily rely on electricity power. For example those dealing in movies, music downloading and uploading, mobile phone repair, secretarial bureaus and computer graphics work. This cost small scale entrepreneurs a lot of money as usually experienced in December.
High rental fees
This is one of the biggest problems encountered while operating any business in Kampala. Landlords charge high rent fees and these are always paid within a given timeframe. Other landlords charge their rent in dollars which is inflated against the shilling. Any failure to beat the rent payment deadline fetches a fine which can be to the tune of 70000 on arcades like Majestic Plaza. Some one can try to cut on the rent cost by sharing a shop with others but some landlords are discouraging this practice.
Unfair tax and licence fees
KCCA makes it mandatory for every trader to pay a trading licence every financial year. However, the business assessment policy to determine the licence is not fair. It is only based on the nature and category of the business not on the amount the business makes. Every retail shop has to pay the same licence regardless of the size which is very unfair to those with little incomes. On top of that a gabbage fee has to be paid for by every shop which is about 9000 shs. Failure to comply with on the licence policy leads to a closure of the business and carries a fine.
Burglary
All arcades have security guards but the security of one’s property is not in the hands of the landlord. One is supposed to vigilant with his property. Many traders lose their valuables to breakages into their shops but the landlord is not liable.
Political unrests
This cannot go unnoticed if one makes a livelihood in Kampala. The city is prone to teargas and running battles between the security organs and opposition politicians. This was remarkable during the infamous Walk-To-Work protests. There fore one has to be steady in case of any outbreak of unrests to close his business premises to avoid loses and injuries.
Competition from foreigners
Some Ugandans endeavor to put into practice their business ideas but are now facing a problem from foreign owned firms. It is now a common sight in Kampala to see locals doing the same business with foreigner regardless of the size. Most notable of this is the dvd selling business in arcades like Zai Plaza where Indians tussle it out with Ugandan youths for business survival. Many Indians, Pakistanis, Eritreans and Chinese among others compete favorably with small scale businesses owned by Ugandans to the chagrin of the locals.
