Determinants of entrepreneurship developments in Uganda: A case study of Kampala, Uganda

Abstract

This research examined the determinants of entrepreneurship development in Uganda taking a case study of Kampala. The study was carried out with the main objective to find out the determinants of entrepreneurship development in Uganda and with the specific objectives to establish the relationship between demographic factors and entrepreneurship development, to establish the relationship between social cultural factors and entrepreneurship development and to determine the relationship between economic factors and entrepreneurship development. The study adopted a cross – sectional design with a sample of size of 80 respondents comprising of comprised of members with small and medium sized enterprises that have been in existence for more than one year in the five divisions of Kampala city who were selected using stratified sampling technique and analysis was done using SPSS and both Univariate and Bivariate level. The study revealed that there was no significant relationship between demographic factors like age and entrepreneurship development at pr=0.358>0.05. There was also a relationship between social factors and entrepreneurship development at at Assym. Sig. (2-sided) p-value was 0.010. for the Pearson Chi-square and since this value is less than 0.05, the researcher rejected the null hypothesis. The results on the relationship between income level and entrepreneurship development indicated that there is a significant relationship between these two variables since pr= 0.027<0.05 hence the null hypothesis was rejected. The study revealed that venturing into entrepreneurship was not determined by one’s sex; parent’s level of education does not influence entrepreneurship development and also that financial institutions like commercial banks do not play a crucial role in entrepreneurship development. The researcher recommends that more development initiative should also be directed to the women to bring them more on board in fostering entrepreneurship development since this study has discovered more men are involved in the field of entrepreneurship as compared to women. The government should also but more efforts in promoting vocational education through construction of more vocational training institutes. Training citizens in entrepreneurship skills should also be channels through cultural institutions like kingdoms since this study has also revealed that cultural institutions also play a crucial role in entrepreneurship development. Empowering financial institutions like banks and microfinance institutions to assist the country in promoting entrepreneurship development through provision affordable loans.