Emyooga beneficiaries have been urged to formalize their businesses to gain access to financial assistance and expand their market opportunities.
The call was made during a stakeholder engagement organized by the Microfinance Support Centre (MSC) in partnership with the Uganda National Bureau of Standards (UNBS), Uganda Revenue Authority (URA), and Uganda Registration Services Bureau (URSB).
The meeting, held at Piato Hotel in Kampala, brought together Emyooga SACCO leaders from Greater Kampala and Bunyoro to educate them on business registration, tax education, and product certification.
The engagement aligns with MSC's commitment to equipping Emyooga beneficiaries with essential knowledge and credentials to access larger markets.
During the informative session, participants were educated on the advantages of obtaining certification from UNBS, registering their businesses with URSB, and paying taxes to URA.
Charlotte Mudoola, Senior Registration Officer at URSB, emphasized the importance of business registration, urging Emyooga SACCOs to formalize their enterprises.
She explained that registration is a key requirement for accessing financial assistance from microfinance institutions and banks.
"We encourage people to register their businesses or companies to formalize their operations because one of the major advantages is that you gain access to financial assistance from different microfinance centers and banks. If you want to grow your business and expand, you're not going to rely solely on the little money you have," Mudoola said.
She further highlighted that many businesses miss out on bids due to a lack of registration.
"For example, if you've applied for a bid and need to produce more products, you may require a loan to scale up. One of the main requirements from banks is registration. They will ask for your Certificate of Registration, and if you are not registered, you'll miss out on these opportunities. Many businesses in Uganda are unaware of these benefits and fail to register," she added.
Mudoola stressed the need to transition from the informal to the formal sector for business growth and sustainability.
"We need to move from the informal sector to the formal sector to compete, grow as business people, and contribute to the economy. This also ensures business survival," she remarked.
Desire Kenganzi from UNBS guided attendees on the certification process, explaining how certified products enhance customer trust and widen market reach.
She encouraged entrepreneurs to pursue certification to boost product viability in various market segments.
Hafsah Seguya, a Tax Education Officer at URA, urged Emyooga SACCO beneficiaries to acquire Tax Identification Numbers (TIN), emphasizing that TIN numbers are issued free of charge.
"As you register your business with URSB, we expect you to come to URA for a TIN number, which we provide at no cost. However, once you obtain a TIN, we expect you to keep business records, including expenses and income, because taxes are derived from your profits," Seguya explained.
She underscored the importance of tax compliance, noting that government revenue primarily comes from taxes.
"The government gets money from taxes, so when you pay taxes, you ultimately benefit. Giving back to the government through taxes is crucial, and the first step to entering the tax bracket is acquiring a TIN number," she added.
Seguya also encouraged entrepreneurs to maintain proper business records, not only for tax purposes but also for effective business management.
She highlighted that government agencies have established one-stop centers in various divisions to simplify the registration and tax payment process.
Joseph Baraza, the Regional Manager for Buganda and Bunyoro, commended URA, URSB, and UNBS for their informative sessions and urged beneficiaries to apply the knowledge gained.
"I encourage you to apply the knowledge acquired here. You cannot access market opportunities if your business is not formalized. I urge you to register your businesses," Baraza said.
He reaffirmed MSC's commitment to ensuring that Emyooga SACCO beneficiaries, especially those in value addition, obtain the necessary certifications to attract larger markets.
He noted that while financial support from the presidential initiative has helped many businesses increase production, a lack of certification remains a barrier to market expansion.
Caroline Nashemeza, the Deputy Resident City Commissioner (RCC) of Makindye Division and the event's chief guest, praised MSC for training Emyooga beneficiaries.
She noted that the training would help them formalize their businesses and cultivate a tax-paying culture.
"I'm impressed that you're producing standard products. If you proceed with certification, your products will gain a larger market," she said.
Nashemeza also encouraged entrepreneurs to pay taxes, emphasizing that government revenue enables better planning and improved business environments.
With continued education and support from MSC and its partners, Emyooga beneficiaries are poised to transform their businesses, gain financial access, and achieve long-term sustainability.