INCLUDE Platform
Policy highlights:
  • The government of Uganda has developed several entrepreneurship programs to provide credit counselling to young entrepreneurs. However, participation and reimbursement results are disappointing. Credit counselling offers a solution.
  • Credit counselling provides youth with information about how to access credit as well as business- and risk management. It helps young entrepreneurs to explore more formal and informal credit options and to ask for lower amounts of credit, thereby increasing their chance of reimbursing the full amount and managing risks.
  • After an experimental credit counselling program, researchers identified a steady decrease in the amount of credit participants wished to borrow. In addition, the training helped the youth appreciate the importance of undertaking better business practices such as preparing and following a business plan, book keeping and how to manage credit and the profits accrued from the business.

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