Gender disparities in enterprise growth, sectoral distribution, and performance in Uganda : evidence from COBE 2019/20

Abstract

Background: Gender disparities in enterprise development remain a significant challenge in Uganda, limiting the contribution of women-owned businesses to employment creation, income generation, and economic growth. Despite the increasing participation of women in entrepreneurship, evidence suggests that female-owned enterprises face structural constraints related to access to finance, technology, skills, and market opportunities. Understanding the nature and extent of these disparities is essential for informing policies aimed at promoting inclusive enterprise development. Objective: This study examined gender differences in enterprise size distribution, sectoral concentration, employment levels, annual turnover, and workforce gender composition among business establishments in Uganda. It also explored differences in enterprise formality status and technology adoption between male- and female-owned enterprises. Methods: The study utilized data from the 2019/20 Census of Business Establishments (COBE). Descriptive statistics were used to summarize enterprise characteristics. Chi-square (χ²) tests were applied to categorical variables, while Mann–Whitney U tests were used for continuous variables due to highly skewed distributions. Statistical significance was assessed at the 5% level (p < 0.05). Multivariate regression models including binary logistic regression, ordinary least squares regression, and quantile regression were additionally estimated to isolate the independent effect of gender of ownership while controlling for sector, region, enterprise age, and formality status. Results: Significant gender disparities were observed across all dimensions examined (p < 0.001). Female-owned enterprises were more concentrated in micro (35.2%) and small (23.2%) categories, whereas male-owned enterprises were more concentrated in the medium-size category (52.7% versus 41.6%). Women predominated in accommodation and food services, owning 51.8% of enterprises in the sector, while men dominated construction (97.4%), information and communication (92.5%), agriculture (87.6%), and manufacturing (72.7%). Male-owned enterprises reported higher average employment (3.09 versus 2.17 employees) and higher median annual turnover (UGX 12.0 million versus UGX 7.2 million), indicating a 40% performance gap. Female-owned enterprises had a higher average female workforce share (76.7% versus 41.2%) and were more likely to be formally registered (94.0% versus 87.0%). However, male-owned enterprises were more than twice as likely to use computers in business operations (33.0% versus 16.1%). Conclusion: Gender disparities in Uganda's enterprise sector are substantial and multidimensional, affecting enterprise scale, sector participation, employment generation, business performance, workforce composition, and technology adoption. While female-owned enterprises demonstrate strengths in formal registration and women's employment, they remain disadvantaged in growth-oriented sectors, turnover, and technology use. Policies aimed at improving women's access to digital technologies, finance, skills development, and high-growth economic sectors are critical for reducing gender-based enterprise inequalities and promoting inclusive economic development. Keywords: Gender disparities, female-owned enterprises, enterprise performance, MSMEs, Uganda, COBE 2019/20, technology adoption, enterprise development.