The African Policy Dialogue on women’s entrepreneurship and social protection in Uganda has published a Policy Brief on ‘Fostering rural women non farm household enterprises financing through local groups’.  The key highlights from this Policy Brief area:

  • Rural women entrepreneurs in Uganda face multiple challenges that impede their enterprise growth and expansion, despite pragmatic interventions from government and non-state actors to enhance entrepreneurship.
  • Uganda’s female managed non farm household enterprises are micro and informal and largely offer a risk diversifying mechanism for households.
  • The entreprises do not have access to formal credit due to lack of collateral and borrow from locally managed community or village credit associations.
  • Uganda’s female non farm enterprises provide predominantly goods and services (trade) to the local economy, and are operated in most instances from within the household dwelling or the immediate surroundings.
  • Due to numerous challenges, female non-farm entrepreneurship, especially rural based, does not contribute significantly to employment creation, transformative rural development or income growth.

Policy recommendations

  • Encourage collective group financing (VLSAs, ROSCAs and MFIs)-to ease access to credit. This can be enhanced by establishment of women groups as an effective way of ensuring women participation and enterprise survival.
  • The Uganda Women Entrepreneurship Programme (UWEP) should ensure that the distribution of funds is equitable by considering different women categories (urban, region, education level, and level of business enterprise).
Share this post