Uganda

Region: Africa
 

Classification of economies by geographic region is based on that of the United Nations Statistics Division.

Low Income
 

Based on the income levels set out by the World Economic Forum (WEF) in its Global Competitiveness Report. However, the groupings are slightly different due to the numbers of economies covered. For GEM, the low income group contains both those classified as low income and lower middle by WEF, and the middle income group has those that WEF groups as upper middle. High income is the same for both GEM and WEF.

Population: 42.9 million (2018)
 

Population data is from the World Bank, except Palestinian Territories World Population Review and Taiwan Worldometers

GDP Growth: 5% (2017)
 

GDP growth data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

GDP Per Capita: $677 (2016)
 

GDP per capita data is from the World Economic Outlook Database, except Palestinian Territories Worldometers

Entrepreneurial Behaviour and Attitudes

Most recent data: 2014
  • Uganda 2014
  • Uganda 2013
  • Global Average
  • Regional Average
  • Income Level Average

Self-Perceptions

  • 1
     
    Perceived Opportunities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who see good opportunities to start a firm in the area where they live
  • 2
     
    Perceived Capabilities Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who believe they have the required skills and knowledge to start a business
  • 3
     
    Fear of Failure Rate*:Percentage of the 18–64 population who agree that they see good opportunities but would not start a business for fear it might fail. NOTE: this is a percentage of those seeing good opportunities, and not the total adult population
  • 4
     
    Entrepreneurial Intentions Rate:Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who are latent entrepreneurs and who intend to start a business within three years
  • 1. Perceived Opportunities Rate
  • 2. Perceived Capabilities Rate
  • 3. Fear of Failure Rate*
  • 4. Entrepreneurial Intentations Rate:

Activity

  • 1
     
    Total early-stage Entrepreneurial Activity (TEA):Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
  • 2
     
    Established Business Ownership Rate:Percentage of 18-64 population who are currently an owner-manager of an established business, i.e., owning and managing a running business that has paid salaries, wages, or any other payments to the owners for more than 42 months
  • 3
     
    Entrepreneurial Employee Activity Rate:Rate of involvement of employees in entrepreneurial activities, such as developing or launching new goods or services, or setting up a new business unit, a new establishment or subsidiary
  • 1. Total early-stage Entrepreneurial Activity (TEA)
  • 2. Established Business Ownership Rate
  • 3. Entrepreneurial Employee Activity Rate

Motivations

  • 1
     
    Motivational Index:Percentage of those involved in TEA that are improvement-driven opportunity motivated, divided by the percentage of TEA that is necessity-motivated
  • 1. Motivational Index

Gender Equity

  • 1
     
    Female/Male TEA Ratio:Percentage of female 18-64 population who are either a nascent entrepreneur or owner-manager of a 'new business', divided by the equivalent percentage for their male counterparts
  • 2
     
    Female/Male Opportunity-Driven TEA Ratio:Percentage of those females involved in TEA who (i) claim to be driven by opportunity as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent or increasing their income, rather than just maintaining their income, divided by the equivalent percentage for their male counterparts
  • 1. Female/Male TEA Ratio
  • 2. Female/Male Opportunity-Driven TEA Ratio

Impact

  • 1
     
    High Job Creation Expectation Rate:Percentage of those involved in TEA who expect to create 6 or more jobs in 5 years
  • 2
     
    Innovation Rate:Percentage of those involved in TEA who indicate that their product or service is new to at least some customers AND that few/no businesses offer the same product
  • 3
     
    Business Services Sector Rate:Percentage of those involved in TEA in the 'Business Services' sector - Information and Communication, Financial Intermediation and Real Estate, Professional Services or Administrative Services, as defined by the ISIC 4.0 Business Type Codebook
  • 1. High Job Creation Expectation Rate
  • 2. Innovation Rate
  • 3. Business Services Sector Rate

Societal Values

  • 1
     
    High Status to Successful Entrepreneurs Rate:Percentage of 18-64 population who agree with the statement that in their country, successful entrepreneurs receive high status
  • 2
     
    Entrepreneurship as a Good Career Choice Rate:Percentage of 18-64 population who agree with the statement that in their country, most people consider starting a business as a desirable career choice
  • 1. High Status to Successful Entrepreneurs Rate
  • 2. Entrepreneurship as a Good Career Choice Rate

Entrepreneurial Framework Conditions

Most recent data: 2014

Expert Ratings: 1 = highly insufficient, 5 = highly sufficient

  • Uganda 2014
  • Uganda 2013
  • Regional Average
  • Income Level Average
  • Global Average
  • Uganda 2014
  • Uganda 2013
  • Regional Average
  • Income Level Average
  • Global Average

An abundance of willing entrepreneurs held back by limited skills and a lack of support from the government


Most recent data: 2014


Ugandans have high aspirations and positive attitudes towards entrepreneurship. They have low levels of fear of failure and the vast majority see good opportunities to start a business in the country. These trends are quite similar to other countries within the sub Saharan African region (with the exception of South Africa).

The average entrepreneur in Uganda is a female, 18-34 years of age, with at least secondary education, working in the consumer service sector.


Enablers and Constraints


The biggest enabler of entrepreneurship in Uganda is its internal market dynamics. The most significant constraints are the unsupportive government policies, in terms of bureaucracy and taxes, and a lack of financing.


Enterprise Uganda’s Training and Business Advisory services


Enterprise Uganda offers training and business advisory services to young entrepreneurs.  Among several training initiatives is the 'Financial Literacy' initiative, which guides young entrepreneurs on efficient management of  personal and firm finances. Additionally, there is a credit facilitation service, which  guides entrepreneurs on  available sources of finance and provides them with negotiation skills that render more appropriate terms of engagement.  These services are important now when bank loan rates are high. 



Trends Over Time


Since GEM data was first collected in Uganda in 2003, the country has shown consistently high levels of entrepreneurial activity, particularly amongst youth. There has been a steady increase of female participation in entrepreneurship over the years and there are now more women entrepreneurs - the current ratio is 1: 0.92 


Challenges for the Future


The number one challenge is to ensure the growth and survival of entrepreneurial ventures. GEM shows that only 2% of businesses expect to employ 20+ people in the next five years, implying that Ugandan entrepreneurship is concentrated in small and micro businesses. 

Moreover, there is a high business discontinuation rate (21%). It is time to create initiatives that both support and improve the quality of entrepreneurship in Uganda.


Uganda Reports

Name
Report information
pdf
GEM Uganda - Supporting Africa's Young Entrepreneurs
Report information
pdf
  • Year of publication: 2015
  • Category: National Reports
  • Language: English
  • Upload date: 2015-06-21

  • In commemoration of the 50 years of Uganda’s independence the report contains an exhaustive review of entrepreneurship literature and practice dating back to the colonial times. This review provides a measured view of entrepreneurship in Uganda, illuminating historical occurrences that have shaped activities and attitudes in present day Uganda.
  • URL: http://gem-consortium.ns-client.xyz/report/49184
 GEM Uganda 2012 Report
Report information
pdf
GEM Uganda 2012 Report
Report information
pdf
  • Year of publication: 2013
  • Category: National Reports
  • Language: English
  • Upload date: 2015-03-27

  • Sub-Saharan Africa is in the midst of an entrepreneurial revolution that is invigorating the region with new opportunities, increased employment and a robust rise in gross domestic product to one of the highest in the world. The GEM 2012 Sub-Saharan African Regional Report reveals that the entrepreneurial landscape is changing rapidly, with the region becoming a mecca for business development and growth.

  • URL: http://gem-consortium.ns-client.xyz/report/48805
 GEM 2012 Sub-Saharan Africa Regional Report
Report information
pdf
GEM Uganda - Insights For Policy
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