Determinants of Microenterprise Performance in Uganda

Abstract

The study investigates the determinants of microenterprise performance in Uganda, where performance is measured by monthly sales revenue. The study uses data from the Uganda National Household Survey (UNHS) 2002-03 collected by the Uganda Bureau of Statistics (UBOS). Microenterprises are defined as small household businesses employing less than five people. The results suggest that the returns in microenterprises are positively and significantly influenced by education level, experience, and business assets, but negatively influenced by being female-owned and rural-based. From the policy perspective, the continuity of the current education policy of the Universal Primary Education (UPE) and Universal Secondary Education (USE) is a step in the right direction in improving the level of education, especially that of women, for the better performance of microenterprises. In addition, the improvement of rural infrastructure is very crucial in enhancing the performance of rural-based microenterprises.

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