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Entrepreneurs have been advised that an important part of doing business is being compliant in regards to the relevant regulatory rules in place.
Speaking during a panel discussion under the theme, ‘Compliance and why many Ugandan MSMEs fail to seize lucrative business opportunities,’ Catherine Poran, the Chief Executive of the Stanbic Business Incubator Limited said, “The first reason why most Ugandan businesses fail is failure to adhere to compliance. Most businesses are not compliant with the laws. When you are doing business, do it the right way. Compliance means that you are doing business the right way. And that is why as the Stanbic Business Incubator, we skill you, to separate what I call good behaviour from the bad, and enable your businesses to thrive,” she said.
The event, held at Hotel Africana in Kampala recently, was organised by Enterprise Uganda, as one of the activities to mark Global Entrepreneurship Week (GEW). GEW is an annual celebration of business, creativity, and innovation.
Poran said, “The second thing that affects businesses is the failure to access markets. At the Stanbic Business Incubator, we engage with potential markets. We are privileged to have a sister organisation, Stanbic Bank, which also works with other clients to see how we can help suppliers access markets.”
She said many small and medium enterprises (SMEs) also struggle with accessing finance and advised them to explore alternative ways to raise capital apart from bank loans.
“There are different ways in which you can raise money. You do not have to get loans every time. For one to get a loan, you need to be disciplined. You can also try out grants. We are currently running a grant call, but for you to be successful, you must have been operating for some time. You must have been paying your taxes, you must be formalised. You must be registered with the Uganda Registration Services Bureau. However, you can also consider equity, inviting someone to invest in your business,” Poran said.
Christopher Kakande, a Partner at Kalinda & Associates, advised entrepreneurs to register their businesses formally, and also be mindful and remit all taxes on time to avoid penalties.
“As business owners, to survive and thrive, you need to accept and pay the taxes. Many people look for ways to run away from taxes. That means you are in denial. You need to understand that government is a partner in your business,” Kakande said.
He added, “The roads we use to move our goods, the security, and other things, are ways through which we partner. So, there is no other way you can assume that the government is not involved in your business. The moment you accept, you will be at peace. However, the moment you keep in denial, taxes are funny; you will accumulate penalties and before you know it, your business will be consumed by them because you have failed to accept and comply.”