Assessment of the impact of small and medium enterprises (SMEs) on employment creation in Uganda: a case study of Ntinda-Kiwatule, Kampala - Uganda

Abstract

This report presents findings from the study about the assessment of the impact of small and medium sized enterprises in Ntinda-Kiwatule, Kampala – Uganda. . The main objective was to assess the impacts of small and medium enterprises on employment creation in Uganda with specific reference to Ntinda-Kiwatule, Kampala – Uganda. . Focus was put on differences in the level of education attained, age and gender of the respondents, the nature of SMEs, and challenges facing SMEs. The study used a quantitative approach with a correlations descriptive design. Data analysis was done at univariate level where frequency distribution tables and percentages are used. The independent variables which included, Furniture and Carpentry, Restaurants and food services and Metal fabrication. And the dependent variable which is employment creation. And the role of Government and non- government organizations beside the investors contribution to employment creation in Uganda .From the findings, the Roles and benefits of SMEs has led to a level of employment creation due to the fact that it increases various job opportunities. But still there high rate of unemployment. The study recommends that SMEs should embrace information technology, they also should take insurance covers to cushion them against risks, Contracts should be documented and audited accounts should be required by the owners. And SMEs should be subjected to equal treatment in competitive environment of the business. Other recommendations to improve on SMEs operation and setting up more SMEs, included ensuring easy access to financial credit to solve the problem of inadequate start-up capital and also subsidizing the people operating SMEs. This will reduce the high unemployment rates in Ntinda-Kiwatule, Kampala – Uganda.