Uganda is one of the most entrepreneurial nations in the world, yet it faces a harsh reality: for every new business that opens, another shuts down.
According to the 2016 Global Entrepreneurship Monitor (GEM) Report, this alarming trend is fueled by financial illiteracy, poor corporate governance, and external shocks like the COVID-19 pandemic. But there’s hope.
The Uganda Registration Services Bureau (URSB) has just launched the Corporate Rescue and Aftercare Support Program 2024/2025, a groundbreaking initiative designed to tackle Uganda’s high business failure rate head-on.
This program isn’t just about survival—it’s about equipping entrepreneurs with the tools to thrive.
Why This Program Matters
Uganda’s entrepreneurial spirit is undeniable, but passion alone isn’t enough to keep businesses afloat.
Weak financial management, lack of strategic planning, and inadequate governance have left many businesses vulnerable.
The Corporate Rescue and Aftercare Support Program aims to change that by focusing on three critical areas:
1. Financial Literacy: Teaching entrepreneurs how to manage cash flow, assess profitability, and make informed financial decisions.
2. Corporate Governance: Instilling best practices to ensure transparency, accountability, and long-term sustainability.
3. Business Management: Providing actionable strategies to navigate challenges and seize growth opportunities.
As Mr. James Bulenzibuto, CEO of Elimu Trust Eastern Africa, aptly put it during the launch: “We’re not here to build CVs. We’re here to equip you for success. Let’s change the narrative.”
Debt: A Double-Edged Sword
One of the program’s key messages is about smart borrowing. Ms. Barbara Kasekende, Head of the Advisory Department at Uganda Development Bank (UDB), emphasized that debt should be an enabler, not a burden.
Before taking on loans, business owners must ask themselves:
- Is my business unprofitable?
- Is it still too young to handle debt?
- Have I invested my own money first?
- Can I demonstrate a clear return on investment?
If the answer to any of these is “yes,” it’s time to rethink. Reckless borrowing can sink a business, but strategic debt can fuel growth.
A Proactive Approach to Business Survival
Since 2016, the Directorate of Insolvency and Receivership has been laying the groundwork for this initiative through insolvency conferences targeting judicial officers, bankers, and policymakers. The Corporate Rescue and Aftercare Support Program builds on this foundation, offering a proactive solution to prevent business failures before they happen.
The program’s objectives are clear:
- Enhance financial management skills.
- Train participants in corporate governance best practices.
- Introduce corporate rescue mechanisms under Ugandan law.
- Create a platform for knowledge-sharing among experts and entrepreneurs.
Who Stands to Benefit?
This program isn’t just for struggling businesses—it’s for anyone looking to future-proof their operations. The target audience includes:
- Entrepreneurs and business owners.
- Boards of corporate entities.
- Regulators and policymakers.
- Academia and business educators.
By fostering a culture of resilience and strategic thinking, the URSB aims to ensure that more Ugandan businesses not only survive but thrive in an ever-changing economic landscape.
The Bigger Picture
This initiative aligns with Uganda’s National Development Plan (NDPIII), which prioritizes private sector growth.
By addressing the root causes of business failure, the Corporate Rescue and Aftercare Support Program is a step toward building a more robust, sustainable economy.
Final Thoughts
The URSB’s new program is more than just a training initiative—it’s a lifeline for Ugandan businesses.
Whether you’re a seasoned entrepreneur or just starting out, this is your chance to gain the skills and insights needed to navigate challenges and achieve long-term success.
So, are you ready to take your business to the next level?
