The Government's Role in Nurturing Management for Sustainability Practices among Small and Medium Enterprises in Uganda

Abstract

In Uganda, small enterprises account for 50% of the economy, 90% of the private sector, 75% of the nation's GDP, and provide jobs for more than 2.5 million people. It is a serious issue in the majority of African nations, particularly those with high rates of general entrepreneurship and the greatest incidence of business fatalities. For instance, it is a well-known statistic in Uganda that 64% of small firms fail in their first year of operation and 30% of those that do survive do not make it to their third anniversary (Afunadula, 2018). Although the causes of unsustainable economic practices in developing nations like Uganda remain unknown, this background offers a crucial element of the article. This paper explores the likely impact of applying a global entrepreneurship mentor (GEM) model which states that entrepreneurship and sustainability of businesses are significantly influenced by their surroundings in terms of availability of funds, Taxes and restrictions, Government entrepreneurship programmes, Education entrepreneurship, Research & Development, Commercial and legal infrastructure, Business Entry regulation, Physical infrastructure and Cultural and social norms.  Therefore, it is crucial that the government create an environment that encourages entrepreneurship and business sustainability. This can be done in a number of ways, including establishing a regulatory environment that is favorable, funding education and skill development because business entrepreneurs need the knowledge and abilities to launch and expand successful ventures, supporting research and innovation and promoting ethical business conduct.