Although Uganda has been ranked as one of the world’s most entrepreneurial countries, the rate at which the same businesses are failing is alarming. It actually scores among Africa’s countries with the highest rate of business failure, along with Malawi, Ghana, etc. Most Ugandan, Kenyan, and other Sub-Saharan businesses fail within the first year of establishment.
It looks easy to start a business and we often dream big about our businesses but the risks are what we never really look forward to face and more so the failures. Our business ideas look so great that failure never crosses our minds until we face it.
Here, we present what makes most East African businesses fail miserably.
- Financial mishandling. If you get handle finances right, your business will definitely fail. Make
sure you calculate profits, losses and take off the capital.
- Competition. Competition is good for any business but I mean unhealthy competition. If everyone is producing what you produce almost exactly, your business may fail.
- Zero creativity. Stand up, get creative. If you have many competitors, do something different or package differently. Your business is most likely to fail if you are creatively at zero.`
- Too many projects at once. It is said you cannot serve two masters at a go and this applies to businesses. Do not start up too many projects at once. Grow one at a time lest all will fail.
- Poor communication. This applies to those with employees. Spell out what you want and keep your communication between yourselves healthy. Help them to help you grow instead of fail your business.
A few more honorable mentions include poor customer care and producing or rendering services off-market. Know these and more, improve your business, and let us meet on the otherside… When your businesses thrive.
If you need business management or accounting software to effectively run your business, don’t hesitate to give us a call for a free consultation. Call +256414665846 (Uganda) or +254202305051(Kenya) or email firstname.lastname@example.org