Lesson three


These are associations formed by business men voluntarily and agree to work together to achieve their own objectives. 

The common objectives which make business men form associations are; 

  • To protect their interests which they cannot do on individual basis
  • To protect their competition from foreign competition

3.2       Examples of business associations are; 

  • Kampala City Traders’ Association (KACITA)
  • Uganda Farmers Association (UFA)
  • UMA (Uganda Manufacturer’s Association
  • NUMA (Northern Uganda Manufacturer’s Association)
  • UWEA (Uganda Women Entrepreneurs’ Association)
  • UTODA (Uganda Taxi Drivers Association
  • UTEC (Uganda Teachers Education Consult)


  • To get local and foreign markets for their produce.
  • To get raw materials through identifying possible suppliers.
  • To provide technical advice to their members as regards marketing strategies and technics of producing products.
  • To access credit facilities in term of loans for their businesses.
  • To advocate for the rights of their members for example death, sickness, loses, accidents etc. 

3.4       Advantages of business associations 

  • They help to create local foreign markets for their produce
  • They get raw materials for their members by sourcing reliable suppliers of such raw materials
  • They advocate for the rights of members for example by fighting unfavourable policies regarding their business like high taxes, lengthy procedures of getting income.
  • They provide technical advice as regards methods of producing goods, marketing strategies, quality control etc.
  • They provide inputs to their members like fertilizers, vaccines etc.
  • They provide in keeping prices stable for their members hence making profitability of their businesses predictable
  • They provide capital in form of loans at low interest rates hence boosting their capital base.
  • They provide assistance to mm=embers in-case of unforeseen problems like floods, accidents, fire outbreak etc.

3.5       Questions 

  1. What is meant by the term business associations?
  2. Explain the reasons for the existence of business associations
  3. Explain the merits of business associations
  4. Explain the problems facing business associations
    • Misuse of funds to cater for self help
    • Unfavourable government policies (high taxes)
    • Unforeseen problems e.g. losses, sickness etc.
    • Political instabilities like strikes
    • Untrustworthy customers
    • Inadequate funding or capital leading to poor service delivery
    • Poor infrastructure e.g. poor roads etc.
    • Disunity among the top administrators or manager
    • Price fluctuation