Micro, small, and medium enterprises (MSMEs) form the backbone of Uganda’s economy, accounting for 90% of the private sector, contributing 75% to GDP, and employing over three million people.
Despite their critical role in economic growth, many MSMEs face systemic challenges such as limited access to finance, poor business linkages, and low technology adoption.
To address these concerns, the Ministry of Trade, Industries, and Cooperatives, in collaboration with the Mastercard Foundation, IPSOS, Ichuli Institute, and other partners, has launched the State of Entrepreneurship in Uganda 2024 report.
This landmark study assesses the country’s entrepreneurial landscape and introduces the National Entrepreneurship Index (NEI), which scored 57%, indicating a moderately healthy ecosystem but also highlighting areas for improvement.

Government’s Commitment to Supporting Entrepreneurs
While presenting the report, Hon. Francis Mwebesa, Minister of Trade, Industry, and Cooperatives, reiterated the government’s commitment to strengthening MSMEs.
He emphasised the importance of understanding the business environment to foster sustainable growth.
"Given the role MSMEs play in generating employment and enhancing GDP, it is imperative to understand the landscape, profiles, critical barriers, and growth drivers—particularly access to finance and the role of the private sector in supporting MSMEs," he stated.
The minister noted that Uganda’s Vision 2040, the Third and Fourth National Development Plans (NDPIV), the NRM Manifesto, and various national policies prioritise the growth of MSMEs as key drivers of economic transformation.
Key Findings: Strengths and Barriers
The NEI score of 57% reflects an ecosystem with both strengths and challenges. The report highlighted positive attitudes (88%), willingness to grow (79%), and human capital (78%) as strengths that indicate an ambitious and resilient entrepreneurial community.
However, it also identified several barriers:
Business linkages scored only 24%, showing weak networks and collaboration.
Technology adoption stood at 35%, pointing to a digital divide affecting 53% of MSMEs.
Business registration was at 39%, reflecting difficulties in formalising enterprises.
Demographic disparities persist, with women-owned businesses scoring 56% compared to 59% for men, and youth entrepreneurs (18–30) scoring 60% but struggling with formal registration.
Recommendations and Future Outlook
The report recommends targeted interventions to simplify business registration, improve digital literacy, enhance financial accessibility, and provide tailored support for women, youth, and persons with disabilities.
According to Dr. Margaret Kemigisa, Director of IPSOS Africa Centre for Development Research and Evaluation, the NEI consists of eight key components: human capital, formality, business linkages, technology, internal processes, attitudes, willingness to grow, and financial sustainability.
"This report reflects the resilience of Uganda’s entrepreneurs and the opportunities to strengthen the ecosystem," she said.
The collaborative approach behind this report unites policymakers, financial institutions, and development partners to align efforts and foster sustainable growth.