Reasons For the Popularity of Small and Medium Enterprises in Uganda

• They are flexible ie can even be located in rural areas
• They have low operational costs due to fewer workers
• Require relatively less capital to start
• Decision making is easy
• Require shorter / less requirements to start
• Use idle local resources e.g labour, land etc
• Ready market for the products in the surroundings
• Favourable government policy like regards SMEs
• Require simple technology which is readily available
• Improved infrastructure e.g feeder roads, mobile phone network.
• Simple and easy to manage
• Require simple and basic technology
• Located near customers / accessibility
• Require cheaper labour
• Less legal requirements / formalities to establish
• Increased awareness about the role / importance of entrepreneurship
• The increased need to provide employment for the family members
• Low risks