Role Of Small Scale Businesses In The Provision Of Employment To The Labor Force (A Case Study Of Shauriyako Trade Center In Kampala District)

Role Of Small Scale Businesses In The Provision Of Employment To The Labor Force (A Case Study Of Shauriyako Trade Center In Kampala District)

Preface1.0

Background

Small scale enterprises are a major element of the Ugandan business sector that sustained the frugality through the hard times when all the different sectors of the frugality were in disequilibrium. In 1986, Uganda shouldered profitable reforms through the IMF/ World Bank funded Structural Adjustment Programs( SAPs). Like in numerous developing countries these reforms were meant to change the Frugality from an hamstrung, import dependent frugality to one that’s further diversified, effective and import acquainted( Ajibefun and Daramola, 2003). The small scale businesses had a part to play in support of the product and import sectors to achieve the pretensions of the SAPs at the time.

In Uganda, Small Scale Businesses have been a critical source of support to the floundering frugality that formerly depended on the agrarian sector and remittances. The Small Scale Businesses( SSBs) led to an increase in the employment situations to 70 of the non ranch labor force, thereby contributing to 80 of the cultivated affair and 20 of total Gross Domestic Product( World Bank 2009). This reduced poverty amongst the people in the pastoral and civic areas of the country which encouraged government to take over further action in support for similar investments since they demanded lower capital per job created, offering a rather affordable way of accommodating the labor force for indifferent wealth distribution.

The Government of Uganda( GoU) introduced several profitable measures to restructure the frugality as a way to increase the part of both the public and private businesses. The deregulation of the frugality was aimed at altering the incitement structures faced by the small scale sector. similar programs include the payment and trade liberalization, interest rate liberalization, and applicable pricing of public goods and the reduction of government involvement to enhance product and performance. utmost of these programs directly and laterally affect directors and workers in an frugality.

The GoU is presently centered on minimizing its intervention in profitable conditioning so that it encourages private sector participation for increased product and inflows thereby leading to profitable tone adequacy and reliance. The effective part played by the small scale businesses in the application of coffers as labor has led to poverty reduction for broad grounded profitable growth.

The large informal sector which is substantially comprised of the small scale businesses offer great eventuality for employment generation thus a good target for policy to annihilate poverty. By creating employment openings for the unskilled labor, they could increase inflows as a way to reduce poverty. still this eventuality can only be achieved if the small scale businesses largely absorb the labor force to boost product.

According to the Background to Budget2008/09, Uganda’s frugality was composed of the Small Scale Business sector that were distributed into noncommercial and retail trade estimated to be 46, manufacturing at 31 as caffs and hospices constitute 7 during Financial Year( FY2007/ 08). Small Scale Businesses have played a great part in the provision of employment openings to the labor force since they’re numerous in figures, possessed and operated with low volumes of working capital.

In numerous developing countries, the growth of Small Scale Businesses( SSBs) is a wide spread concern due to their donation to profitable growth and Development because they compose the larger informal sector that’s significant in the provision of employment in an Frugality. It should be noted that Small Scale Businesses are largely different in terms of division of labor through which they produce openings for productive work that leads to an increase in the labor participation rate thereby contributing to poverty reduction, profitable growth and development.

According to the Uganda Bureau of Statistics( UBOS 2007), between 2002 and 2006, the proportion of workers in tone employment increased from 13 to 22 for the non husbandry conditioning in which the employment population rate for men increased overwhelmingly to 82 compared to 79 for women thereby enabling further people to find jobs in SSBs not only out of the need to increase and diversify inflows but in the face of reducing Poverty through employment provision. It was reported in2006/2007 by Uganda Bureau of Statistics( UBOS) that the total number of businesses registered in Kampala was nearly 26,000 of which those employing 5 or further persons were 17,084 hence showing a growth of over 60 of Small Scale Businesses.

The Government of Uganda( GoU) with the support of International development mates as the World Bank through the Foreign Direct Investments( FDI) to promote the informal sector as a way to reduce severance( a crucial variable for measuring the performance of an Frugality). This has led to the affluence of jobless work force to Kampala which is the major trade center in the country; homes increased their amenability to share in the labor request by setting up Small Scale Businesses to meet the social and profitable liabilities associated to their families leading to competition.

It’s against this defense that Small Scale Businesses in Shauriyako Trade Center have been set up to give substantial and sustainable employment openings spark development and profitable growth.

Statement of the Problem

Small Scale Businesses are competitive and dynamistic nature. This makes them a abecedarian cause for profitable growth and Development through their donation to income redivision, and Severance reduction in developing husbandry. still, there are no clear pointers that severance rates have reduced. Severance constantly remains a crucial concern that needs the attention of major profitable opinions to concentrate on the creation of small scale businesses conditioning.

Ideal Of The Study

The study tried to examine the nature of SSBs that give employment to the labor force in Shauriyako trading centre in Kampala District.

Specific objects

To identify the different conditioning of the small scale businesses in which the labor force is employed.

To identify how the SSBs contribute to development and growth of developing profitable.

To identify the size of businesses that provides employment to the labor force.

Exploration Questions.

The study delved the following questions;

What reasons have led to the growth of Small Scale entrepreneurial businesses in the region of study?

What challenges have limited the conditioning of the Small Scale Businesses in their part to give employment openings?

Is there space for the expansion of the SSBs?

Purpose of the study

The purpose of the study is to identify the colorful conditioning in which the Small Scale Businesses absorb the labor force.

Compass Of The Study

The study was confined to Small Scale Businesses since they engage the labor force in colorful conditioning that bear little capital to sustain the possibility of retail, noncommercial shops, tackle and general wares, caffs to mention but a many as a way to reduce severance situations

The study concentrated on the reasons for the growth of SSBs towards the provision of employment to the labor force. Through this the part of SSBs with the support of government and other International mates is honored thereby encouraging small scale trade for employment and bettered ménage earnings.

Significance of the Study

The study shall help the policy makers to fete the significance of Small Scale Businesses and diligence in the provision of employment to the labor force for profitable development. This shall further guide them to make trade programs to enhance the performance SSBs as regards their conditioning to accommodate the mushrooming population that’s attributed to high birth and fertility rates as well as pastoral civic migration within the country.

To scholars and other scholars who intend to widen their knowledge in the study of the part of Small Scale Businesses, this study shall be a base of reference since it focuses on the causes of the establishments, how the unique characteristics of the Businesses have eased their part in the provision of employment, challenges they face and the results that are being accepted to harness their conditioning.