Impact of the COVID-19 on small scale businesses in Uganda: a case study of Mulago I Parish

Abstract

The study sought to examine the impact of the Covid -19 on the small scale businesses in Uganda. It was guided by four research objectives: to establish the types of businesses that were affected by the Covid- 19 pandemic, to assess the impact of Covid- 19 on the business turn over ; to establish the impact of Covid -19 on profitability: to assess the impact of Covid – 19 on employment. The study covered a sample size of 246 respondents owning or working in small scale businesses for example wholesale and retail shop, mobile money agents, those working & owning clinics and medical centers, landlords and other categories of people dealing in others businesses stationed in Mulago 1 parish. The study used across sectional research design which was purely quantitative, and the findings, of the study were presented as background characteristics, business turnover, profitability and employment. The study findings revealed that 79.0% of the small businesses established in Mulago 1 Parish had experienced changes due to Covid – 19 outbreak whereas 21.0% had not experienced any change. The study also found that 71.2% of the small scale businesses located in Mulago 1 parish were affected negatively as the result of Covid – 19 pandemic as compared to 20.8% who were affected positively namely the clinics and medical centers. It is therefore recommended that the Government of Uganda needs to provide financial support inform of loans with small or no interest to business owners in order to boost their stock. This can be done through Village Savings and Loan Associations (VSLA) whereby business owners are encouraged to form groups that will be financed by the government. This inturn eases governments accessibility to the business owners, train them on how to use the provided finances to yield profit and the individual business owners can use the knowledge acquired to add to their businesses.