The East African Community (EAC) and Partner State Governments recognize the importance of the MSMEs sector in development of the EAC region and have consequently committed to implement strategies to promote the sector, enhancing its growth and contribution to the regional economy. This is in line with the spirit of EAC cooperation as provided by Article 80 (1) part (C). The part identify facilitation of the development of small and medium scale industries including sub-contracting and other relations between larger and smaller firms as a strategic and priority area in EAC region investment and industrial development.
This study is the most recent and relevant initiative by the EAC in collaboration with partner states, governments and MSMEs representatives aimed at promoting MSMEs development. The study is undertaken with technical assistance from the consultants, Ernst & Young. The objective of the study is to develop alternative strategies for facilitating promotion of the SME sector, especially with a view to raising the survival and growth rate of the enterprises. As a break from tradition, the study took a regional approach in addressing MSMEs needs, and the strategies recommended are to be cascaded to partner state level for implementation.
Formulation of necessary mechanisms for the growth and development of the small and medium enterprises (SME) sector requires a comprehensive review of the current status and profiles of these enterprises. However, a national baseline survey that takes a comprehensive view of the enterprise aspects that can guide the development of strategies that address challenges facing the SME sector in Uganda had not been undertaken until this survey in 2010.
Existing SME data and information has typically been derived from Uganda National Household Surveys; where the unit of analysis is the household rather than the enterprise. The existing SME business register is based on information obtained during the formal registration of enterprises, yet most enterprises are informal and unable to comply with registration requirements. This understanding formed the basis upon which this survey was conceived and designed.