Factors influencing the performance of micro agribusiness enterprises in central division, Kampala district: a case of fruit vendors

Abstract

There has been a recent spark in the unending discussion about the importance and role played by Micro Small and Medium Enterprises (MSMEs) in developing countries especially, Uganda. The need to help them survive, thrive longer and grow in Uganda has risen because of their tremendous Gross Domestic Product (GDP) contribution of over 20%.

The development of these enterprises would enhance poverty alleviation, create employment opportunities, increase GDP per capita and get Uganda back to her position of the World’s most entrepreneurial country based on the Global Entrepreneurial Monitor report in 2017. This thesis focuses on identifying the most pressing factors affecting the performance of MSMEs and based on this information both the public and private sector players would know what to do to improve this sector.

The findings from the study conducted on a case of fruit vendors in Central Division, Kampala to represent micro agribusiness enterprises around Uganda indicate that: business experience, entrepreneurship & risk-taking (measured based on introduction of a new product and readiness to compete) and record-keeping positively significantly affected the performance of fruit vendors’ businesses in Central Division, Kampala. This means that a fruit vendor’s ability to take risks and face uncertainty increased entrepreneurial ability which in turn increased business performance. Furthermore, the longer a business stayed in operation, the better it performed because it built social capital and networks which would further result in partnerships and ease of credit access by fruit vendors (business owners). Finally, keeping records was as well noted to improve business performance.