Uganda, Feb 7 – Small and Medium Enterprises (SMEs) have been reminded of the saving culture once more to boost their investment levels. “Save for investments and not consumption,” has been the reiterated words of Resident District Commissioner (RDC) of Mityana district, Capt. Yahaya Kakooza.
He has challenged the entrepreneurs to heap finances not to satisfy and gratify their bellies but to invest more in their businesses to enhance economic growth. Consumption would only trigger a poverty mindset that would deprive them of other better opportunities to expand their enterprises.
The SMEs operators understandably play a crucial role in elevating the country’s GDP and would be doing the economy injustice to squander their return on investments other than plough back the money once more to their businesses.
The nuggets of advice aim at improving the business environment and service delivery that would benefit the consumer and producer. It is not a financial constraint of the operators not enjoying their money but to look into the futuristic perspective of doing more.
With the expansion of SMEs, the revenue base collected by the government will widen and the taxes obligation not weighing down the growth of industries. It will be a symbiotic relationship with the government’s support as both parties share the benefits accrued in the long-term relationship.
The agriculture sector was targeted more as the key players were asked to increase the production level. Being the pillar of Uganda, the sector acts as a livelihood for many farmers and a dependent factor for many individuals. The sector has the financial support from the government and should take the initiative to make the best out of it.
For a number of SMEs to start-up, Savings and Credit Cooperative Organizations (SACCOs) have been the primary financial lenders and brought industrial investment. Having shied off from bank loans due to high interest rates, SACCOs have been an alternatives to many entrepreneurship programs and businesses.