Benefits of Nigeria from the Activities of Nafdac

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THE ROLE OF SMALL SCALE BUSINESSES IN THE PROVISION OF EMPLOYMENT TO THE LABOR FORCE: A CASE STUDY OF SHAURIYAKO TRADE CENTER IN KAMPALA DISTRICT

BY

SEKITOLEKO ERIC
BALAMAGA
2008/HD06/12124U

2010

SUPERVISOR:
DR. JAMES MUWANGA

A RESEARCH PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A MASTER OF ARTS DEGREE IN ECONOMIC POLICY AND PLANNING MAKERERE UNIVERSITY. *
* DECLARATION
*
I SEKITOLEKO ERIC, declare that this work is original and has never been submitted to any institution/University for any Award of a Degree.

Signature………………………………………. Date…………………………… SEKITOLEKO ERIC
STUDENT
*
APPROVAL

This work has been produced under my supervision and is now submitted with my approval.

Signature…………………………………….. Date………………………………… Dr. JAMES MUWANGA
SUPERVISOR

DEDICATION

This work is dedicated to my parents and daughter Nanyunja Leticia Miriam as a sign of love for them. *
ACKNOWLEDGEMENT

Special thanks to Dr. James Muwanga who provided unreserved comments and guidance for the completion of this research paper. Not forgetting the time that you always foregone, this work would not have been finished. Indeed I am who I am because of you.

I also grant special acknowledgement to all the respondents in Shauriyako Trade Center that I appreciate for all your support in the process and provision of information for my study.

I wish to express my gratitude to my brothers and sisters; James Ssentongo and family, Irene Nalukwago, Godfrey Bagerenga and Caroline Namuli, the management of Herm Enterprises Limited for the care, moral and financial support you have always provided throughout my study. Indeed you owe me a lot as this is a challenge put before me; I appreciate for your readiness to facilitate me in whatsoever incidence that challenged me.

I would like to heartily thank all those who have collectively helped to make this study a success my Lecturers in particular Dr Gertrude Muwanga, Dr Baale Edward, Dr Tom Mwebaze, Prof. Gemina Semwogerere as well as Dr Fred Matovu for the knowledge commitments, efforts and advice they have provided. Not forgetting Henry Sessanga, Simeone Mugenyi, and all other colleagues in the Economic Policy and Planning programme at the Faculty of Economics and Management, Makerere University for their guidance and support during the course of my study.

Thanks to the beloved Katazze family in particular Erimia Kyanjo, Namubiru Aidah, my colleagues Daniel Serunjogi, Herbert Mukasa, Festo Sagula, Mpanga Isa, Martin Setanda, Nyangendo Judith as well as Sylvia Nalubega who did not forsaken me even when I needed special assistance sincerely you bear an extraordinary position at my heart and I honor you all for that may God Almighty reward you. *

TABLE OF CONTENTS
DECLARATIONi
APPROVALii
DEDICATIONiii
ACKNOWLEDGEMENTiv
TABLE OF CONTENTSv
LIST OF TABLESviii
LIST OF FIGURESix
ACRONYMSx

CHAPTER ONE: INTRODUCTION1
1.0Background1
1.1Statement of the Problem2
1.2 Objectives of the study2
1.2.1 Specific objectives3
1.2.2 Research questions.3
1.3 Purpose of the study3
1.4 Scope of the study3
1.5 Significance of the Study4

CHAPTER TWO: LITERATURE REVIEW5
2.0Introduction5
2.1 Definition and nature of SSBs5
2.2 ADVANTAGES OF SMALL SCALE BUSINESSES7
2.3 NATURE AND CATEGORIZATION OF ACTIVITIES OF SSBs IN SHAURIYAKO TRADE CENTER.8 2.4 REASONS FOR SMALL SCALE ENTERPRENUERIAL BUSINESSES IN THE AREA OF STUDY10 2.4.1 Government Policies:10
2.4.2 Trade liberalization policy:10
2.4.3 Foreign Aid Donations:11
2.4.4 Low start-up capital:12
2.4.5 Population growth:13
2.5 CHALLENGES FACED BY SMALL SCALE BUSINESSES14
2.5.1 Poor Infrastructure:14
2.5.2 Financial Problems:14
2.5.3 Improper business Feasibility:15
2.5.4 Lack of Managerial Knowledge:15
2.5.5 Poor Educational Background or Lack of Education:16
2.5.6 Out-Dated Technology:16
2.5.7 Poor Marketing...
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