Equity Bank Uganda Limited, the official bank partner of this year’s Top 100 Mid-sized Companies Survey, in partnership with KPMG and the Daily Monitor, has today announced the results of the Top 100 SME Survey, following four months of data collection and high-level interactions with SME owners and stakeholders.
This year’s survey theme is “Empowering SMEs for a Monetized Uganda: Catalyzing Growth through Innovation, Sustainability, and Market Access”.
The survey, which began in July, captured insights from 180 SME participants about their perspectives on the economy, business operations, opportunities, challenges, and innovations.
Given the significant presence and impact of SMEs in Uganda, the survey aimed to identify Uganda’s fastest-growing and medium-sized enterprises, celebrating business excellence and showcasing some of the nation’s most inspiring entrepreneurship stories.
“Equity Bank is proud to stand alongside some of the country’s most vibrant and resilient entrepreneurs who form the backbone of our nation’s economy,” said Gift Shoko, Executive Director, Equity Bank Uganda Limited.
Equity Bank’s involvement in the Top 100 SME Survey campaign underscores the Africa Recovery and Resilience Plan, which aims to achieve the social and economic transformation of Africa.
Gift Shoko went on, “We reinforced this commitment to the SME sector in 2022 with the launch of the Africa Recovery and Resilience Plan, which has become our landmark strategy to support business recovery from the post-Covid pandemic challenges through available financing to the tune of $65 billion.”
The survey highlighted a 16-year commitment to celebrating the innovation and resilience of small and medium enterprises in Uganda.
“The SME survey today marks another milestone in a journey that has spanned 16 inspiring years, celebrating the innovation, resilience, and impact of Uganda’s small and medium-sized enterprises,” remarked Sam Barata, the General Manager, Commercial of Nation Media Group.
“The results we share today celebrate remarkable achievements while offering insights into the challenges and opportunities ahead,” he continued.
Companies with an annual turnover between Shs360 million and Shs25 billion were eligible to participate in the survey, provided they submitted audited financial statements for the past three years, certified by a registered auditor. Benson Mwesigwa from KPMG noted the exclusion of banks, insurance firms, and stock exchange member companies.
The survey campaign will culminate in a gala dinner and award ceremony, recognizing and honouring SMEs that have demonstrated excellence, resilience, and innovation in the sector, significantly contributing to economic growth and exemplifying the transformative potential of SMEs within the economy.
Key Highlights From The Survey
Ownership and Management:
- Business Establishment: 70% of businesses have been operational for 6–25 years, while 9% are newly established.
- Ownership: Fully Ugandan-owned businesses increased to 70% (+7% from 2023), while foreign-owned businesses declined by 2%.
- Active Management: 81% of owners actively manage day-to-day activities, up from 76% in 2023. Family-run businesses involve an average of three family members, with two in management roles.
- Governance: 63% of companies have boards (4-5 members on average), and 87% of boards take on executive roles, showing improved governance.
Source of Financing:
- Start-Up Capital: 72% of businesses used founders’ savings, though this is down from 77% in 2023.
- Expansion Funding: Bank loans (56%) and founders’ savings (35%) remain top funding sources.
Challenges:
- Inflation and global economic challenges led to a 4% decline in annual sales, while sectors such as construction (+20%), manufacturing (+12%), and agriculture (+9%) experienced growth.
- Key challenges include high taxes, competition, delayed customer payments (75%), stringent supplier credit terms (43%), and lack of funding for asset investments (43%).
Risk Management and Support:
- 94% of businesses are risk-aware, with 82% managing risks through transference.
- 77% sought professional advice, focusing on financial management (59%), funding sources (47%), marketing (29%), and e-commerce/technology (28%).
Technology and Certification:
- Adoption of new technology stands at 58%, down from 65% in 2023.
- Certification levels remain low at 14%, a slight decrease from 17% in 2023.
Future Outlook:
- Stock Exchange: 21% of businesses are considering listing, with most planning this in 2–3 years.
- Expansion: 34% aspire to form partnerships within East Africa, with Kenya and Rwanda being key destinations.
- Hiring: Due to business expansion and new contracts, 71% anticipate hiring more staff in the next year.
Competitiveness and Customer Insights:
- Competitive advantages stem from high-quality products, competitive pricing, and customer care.
- 73% of businesses adapt products based on customer preferences, emphasizing demand for quality.
Environmental, Social, and Governance (ESG):
- 43% of businesses are aware of ESG factors, focusing on waste management, tree planting, recycling, solar energy, and eco-friendly materials.
Below are remarks by Equity bank Uganda Executive Director Gift Shoko at the launch
Good morning,
Distinguished Guests, Ladies and Gentlemen,
It is a great honour to join you this morning as we unveil the findings of the Top 100 Mid-Sized Survey report, a project that has become a hallmark of recognizing and celebrating excellence in the SME sector.
As the main sponsor of this significant initiative, Equity Bank is proud to stand alongside some of the country’s most vibrant and resilient entrepreneurs, who form the backbone of our nation’s economy.
Small and medium-sized enterprises (SMEs) play a vital role in driving economic growth, creating jobs, and fostering innovation. This survey is not just about recognizing your accomplishments; it is a testament to your resilience, innovation, creativity, and unwavering commitment to excellence despite the challenges you face.
At Equity Bank, our sponsorship of this initiative stems from history and a deep-seated belief in the power of SMEs to transform lives and communities. Our history, from a small building society in a little-known village to the number one regional bank, fuels our commitment to support your journey of growth and impact.
As we release this report this morning, which we believe will give us valuable insights into the SME sector, I would like to take this opportunity to share what we, as your financial partner, aspire to achieve with you moving forward:
1. Building Tailored Financial Solutions:
We understand that SMEs face unique challenges, from managing cash flows to scaling operations. Equity Bank is dedicated to providing financial products and services specifically designed to address these needs. Whether through access to affordable credit, tailored business advisory services, or innovative digital tools, Equity shall be there to empower and enhance your growth. We reinforced this commitment to the MSMEs sector in 2022 with the launch of the Africa Resilience and Recovery Plan, which has available financing to the tune of $65 billion to support business recovery from the post-COVID-19 pandemic challenges. This support and financing is readily available for you.
2. Enhancing Capacity Building:
Beyond financing, we aim to invest in your skills and knowledge. Through our Enterprise Development and Innovation Programs, we will provide access to training and resources that help you navigate market dynamics, embrace digital transformation, and strengthen your management practices.
3. Expanding Market Access:
We know that market access is critical for growth. That is why we provided for the facilitation of access to markets, through accelerating linkages of MSMEs to former value chains, increased regional and international linkages, and finance trade and logistics to be able to serve the sector, under the African Resilience and Recovery Plan. Initiatives such as trade missions like the just the concluded DR Congo trade mission, India-Uganda Trade Mission, business expos, and networking forums will remain at the core of our efforts to help you scale and diversify.
4. Promoting Sustainability and Resilience:
In today’s ever-changing economic environment, sustainability is key. We will work closely with you to integrate sustainable business practices that ensure long-term success while positively impacting your communities.
Looking Ahead
As KPMG and NMG, our partners, release this survey report, we are filled with optimism for the future. The SMEs represented here today embody the spirit of innovation and hard work that is critical for Uganda’s economic transformation.
Our expectation, as Equity Bank, is that you will continue to push boundaries, innovate, set new standards, and serve as an inspiration to other enterprises across the nation. In return, we commit to being your steadfast financial partner, offering integrated financial services that socially, and economically empower you to full potential.
We look forward to working with each one of you, strengthening our collaboration, and celebrating even greater milestones in the years ahead. Together, we can build a future where SMEs not only thrive but also lead the charge in shaping Uganda’s prosperity.
To KPMG, we are eager to know what the Survey found out and the insights it offers on the SME sector.
I thank you.
