Financial experts have tipped Small and Medium Enterprises(SMEs) on how to explore and understand new ways of financing businesses so that they can leap from surviving to thriving in this economy through financing and investment.
The advice was given during a Prudential Knowledge Series organised by Prudential Assurance Uganda to help highlight key issues that affect small and medium enterprises in a bid to equip stakeholders in SMEs with knowledge of new ways of financing.
So far, Prudential has held five editions of the knowledge series looking at investing and sustaining small businesses, understanding agri-business, education in the new normal, and how to save for the short and long term.
The series have reached and impacted over 5000 Ugandans.
According to the World Bank, SMEs play a major role in developing countries, accounting for about 90% of businesses and more than 50% of employment worldwide; formal SMEs contribute up to 40% of national income (GDP) in emerging economies.
Former minister of Finance, Maria Kiwanuka, urged borrowers and lenders to respect each other as a way of ensuring development.
She called upon regulators to regulate in a way that improves, sustains and forwards the development, noting that affordable financing for viable sustainable SMEs and projects is very important when dealing with financing.
"If we look at the existing modes of financing, the banks, Saccos, family and friends among others, when you look at these areas, why don’t we have affordable financing whether loans, partnership or grants for SMEs?" she quarried.
John Walugembe, the executive director of Federation of Small and Medium Sized Enterprises(FSME), said given the fact that most SMEs in Uganda are not run formally, they are looked at by financial institutions as extremely risky and they are not considered as viable borrowers.
"This is where the money is. Micro business is where future growth is,” he said.
Tetteh Ayitevie, the chief executive officer at Prudential Uganda said despite Uganda being ranked the world’s most entrepreneurial country, few Ugandan businesses hit the big time.
"In our conversation today, we rethink how SMEs can leap from surviving to thriving in this economy through financing and investment.What we are doing here today is part of a carefully designed plan by Prudential; to bring together thought leaders to be an oasis of knowledge sharing for people that are looking to continuously make their lives, businesses and wellbeing better," he said.
