The business community especially SMEs’ have been urged to embrace business survival and sustain themselves. Those intending to start businesses were advised to understand the nature of the business and the risks associated with it.
St. Balikuddembe Market in downtown Kampala
This was disclosed recently by Rogers Matama, financial consultant at Lucky Family Business (LFB) during a financial literacy training organised by private sector foundation (PSFU).
This financial literacy training is a partnership between PSFU, Centenary Bank and abi-Trust.
Matama noted that although the best option is to utilise money from one’s savings, it is inevitable to opt for bank loans. However, he cautioned SMEs’ to opt for loan products that are related to their cycle of business growth.
According to Mawanda, business sustainability is important because it saves business people from different challenges like immature business failure.
Uganda was ranked the second most entrepreneurial country in the world but according to the 2004 Gem reports, the rate of business failure in Uganda was also one of the highest in the world.
Ruth Musoke, director for membership services at PSFU reiterated on the need for personal finance planning as an important aspect in achieving financial independence.
Musoke noted that “since there is greater economic uncertainty associated with job stability and investments, financial planning is important.”
Musoke advised the business community to embrace planning as it is key to achieving financial goals.
“When planning, you should be patient before registering growth because it is a gradual process through the life-cycle planning,” said Musoke
Usually in life, people experience different phases like career development, family formation, and retirement among others.
Musoke said the different phases of life have an impact to the different components of financial planning. At different phases, Musoke noted that different financial planning areas increase or decrease in importance accordingly.
Researchers have also found out that most people regardless of their income level feel they need 20% more wealth than they currently have.
By Oyet Okwera, The New Vision
