The Uganda Registration Services Bureau (URSB) has launched an initiative whose objective is to equip entrepreneurs and corporate entities with essential skills in financial literacy, corporate governance, and business management to enhance business sustainability. The launch of the initiative dubbed, Corporate Rescue and Aftercare Support Program 2024/2025, aligns with Uganda’s National Development Plan (NDPIII) goal of fostering private sector development by preventing insolvency and supporting business recovery. According to the 2016 Global Entrepreneurship Monitor (GEM) Report, Uganda was ranked among the world’s most entrepreneurial countries. However, it also recorded one of the highest business failure rates, with one business closing for every new one started. This alarming trend is attributed to inadequate business management skills, financial illiteracy, weak corporate governance, and external shocks such as the COVID-19 pandemic, which saw over 40% of SMEs, struggle to recover. Additionally, a 2023 World Bank Report indicates that 70% of Ugandan businesses lack proper financial planning, contributing to high failure rates. Speaking at the launch in Kampala, James Bulenzibuto, the Chief Executive Officer of Elimu Trust Eastern Africa, emphasized the importance of taking action before businesses fail. “We are not here just to build CVs. We are here because the Directorate believes in proactive solutions, not post-mortems for failed businesses. Let’s change the narrative. Ask your questions, we are here to equip you for success,” he said. The program would encourage participants to fully engage in discussions and training sessions to develop strategies that will help their businesses thrive. Barbara Kasekende, the Head of the Advisory Department at Uganda Development Bank (UDB), stressed the importance of responsible borrowing. “Debt should be an enabler, not a burden,” she said. “Before taking on debt, business owners are advised to carefully assess their financial situation by asking: Is my business unprofitable? Is my business still too young? Have I not yet invested my own money?
“If the answer to any of these is yes, reconsider. Smart borrowing fuels growth whereas reckless debt sinks businesses,” she added.
A press release said that since 2016, the Official Receiver has organized multiple insolvency conferences targeting key stakeholders such as judicial officers, insolvency practitioners, bankers, regulators, and policymakers. Building on this foundation, the Corporate Rescue and Aftercare Support Program is a proactive effort to empower business owners with practical skills necessary for financial stability and sustainable growth. The program will focus on enhancing business financial management and literacy, training participants on corporate governance best practices, providing practical business management strategies for growth and survival among others. The program is designed for a wide range of participants, including, entrepreneurs and business owners, boards of corporate entities, regulators and policymakers, academia and business educators. With over 500,000 new businesses registered annually in Uganda, and an estimated 50% failing within the first two years, this initiative aims to promote a culture of resilience and strategic business management. The Directorate of Insolvency and Receivership is committed to ensuring that more Ugandan businesses survive and thrive in the ever-evolving economy, fostering long-term economic growth, the release added.
