Family businesses could be the answer to the widespread poverty in Uganda.
Auditors have observed that if managed well, family businesses have the capacity to boost Uganda’s SME sector.
According to audit firm KPMG, majority of the small and medium enterprises are family businesses which explains the high failure rate start- ups.
The firm’s Audit Manager Richard Walusimbi says that out of the 300 companies that participate in the annual Top 100 survey, half are owned by families.
He says such companies are prone to failure because they attach emotions in business rather than promoting professionalism.
He says there need to have a fundamental shift in the way family businesses operate through allowing outsiders into the managerial ladder.
The top 100 mid-sized companies’ survey launched yesterday is running for next three months in conjunction with Daily Monitor in partnership with KPMG among others.