In order to unlock the potential of the digital economy for SMEs in Uganda, Innovation Village is partnering with the Federation of Small and Medium-sized Enterprises of Uganda (FSMEU). Owners of Small and Medium-sized Enterprises have been urged to increase their efforts toward inclusive growth of the economy. According to experts, this can be achieved by embracing digital transformation to match the ever-changing business environment.
“By utilizing digital transformation, we can close these gaps and foster an atmosphere that is supportive to SMEs’ success. To help close some of these gaps for businesses, we collaborated with the Federation of Small and Medium-sized Enterprises of Uganda,” according to Weikama.
“Through our Digital Economy Program at The Village, which was implemented in partnership with Mastercard Foundation, we are providing a blend of digital infrastructure, tools, skilling, and channels to support those innovating to bring opportunities to the last mile user, including young people, women, the agriculture sector, and small businesses among others,” he continued.
Recent data shows that MSMEs make up 75% of the private sector workforce and 90% of the country’s businesses, yet just 16% of them have access to formal financing. Innovative solutions are required to assist and empower SMEs due to the lack of resources, which is exacerbated by the COVID-19 pandemic’s consequences.
The Federation of Small and Medium-sized Enterprises of Uganda’s (FSMEs) Executive Director, John Walugembe, underlined the significance of embracing the new digital era while taking into account affordability and resourceful infrastructure.
“The goal of our partnership with the Innovation Village is to address the critical need for SMEs to become digital so they can become more resilient and expand their operations. We can encourage financial inclusion, business growth, and job creation in Uganda by encouraging digital knowledge and engagement in the digital economy while fixing the gaps,” he proposed.
According to a new poll by FSMEs among SMEs on the barriers to digital transformation, the majority of companies do not prioritize digitalization. They emphasized that operating devices presents issues, data and internet costs continue to be high, and the regulatory environment continues to be a barrier for many, citing the high taxation environment as one of them.
