A SYNOPSIS

ON

“EXPLORING THE FACTORS THAT AID THE EASE OF STARTING A

BUSINESS IN UGANDA.”

Submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration

(2017-2019)

Submitted to the Department of Business Administration

BHUTTA GROUP OF COLLEGES.

Affiliated to

Punjab Technical University, Jalandhar.

Research Supervisor:

Designation: Assistant professor.

Submitted by: LUZINDA ERICK VICTOR

Roll No.1735799

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 DECLARATION.

. This is to certify that the Project Report entitled “exploring the factors that aid the ease of
opening an online business in Uganda “is an original format, work and has not been submitted is
part or full to any other university/institution for the award of any degree or diploma.

Name of student: LUZINDA ERICK VICTOR

Roll number:1735799
Sign……………………………………

CERTIFICATE

This is to certify that Mr./Ms. _________________, Roll No.____________ has undergone a

Research Project on “_________________” under my supervision in the specialization area

_______________ . The work embodied in this report is original and is of the standard expected

of an MBA student and has not been submitted in part or full to this or any other university for
the award of any degree or diploma. He /She has completed all requirements of guidelines for
Research Project Report. The work is fit for evaluation.

Signature of Supervisor

Name

Designation

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 ACKNOWLEDGEMENT.

Immense and immeasurable appreciation to the people who guided on how to go on with the

work professionally, filled the data when required, friends and family for all your efforts towards

accomplishing this project. It hasn’t gone in vain.

First of all, to my guide faculty professor ………. for the constant and consistent consultation on

the guide towards the project and always making me question my thoughts everyday while on

work.

To my parents, I owe you a lot for my existence and what I am today for your patience, support

and inspirational guidance especially Mr.………………. even when things seemed harder.

Assist. Proff. ………………….

……………………………………………..

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 TABLE OF CONTENTS.

Serial numbers CONTENTS PAGES

5.5 Abstract 5
5.6 Introduction 6
5.7 Procedure to start a new 7-12
business in Uganda
5.13 Current scene of Africa on 13-14
ease of doing business
5.15 African countries rankings on 15
EODB
5.17 Procedure to open a business 16-18
in India
5.23 Review of literature 19-21
5.38 Tittle and objectives of study 22-25
5.42 Scope of study 26

5.43 World bank rankings on 27-28

EODB
5.47 Significance of the study 29
5.48 Limitations of the study 30-32
5.51 Research methodology 33-35
5.55 Selecting sample size 36
5.56 Data collection and 37
techniques
5.57 Designing a questionnaire 38-39

5.61 Data codding and analysis 39-40

5.63 Analysis interpretation 41-52
5.85 Findings 53
5.86 Recommendations/conclusions 54-55
5.88 Bibliography 56-57
5.93 Questionnaire 58-61

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ABSTRACT

Starting a new business demands, a lot of factors to be taken into consideration and complying
with the latest data published by world bank, geographical presence and location plays a better
role in comparison with other factors like government regulation, documentation, competition,
market potentials and capital requirements are some of the ready re-known identities for a base
to set up a new venture comprehensively looked into regardless of a country’s size or its history.
The highlights projected in the research in respect to a country like Uganda with vast investment
options and wave of climate for its economic stability as we focus on 2018/19.

In this paper we look forth to analyzing the most divergent and important aspects in relation to
the ease of doing business or singling out the facilitators of a venture startup be it small or bigger
as this may include double aggregation as one of the factors can’t stand all alone in isolation but
in uniformity to add taste to another existing one. The regional factor variation may exist as
what’s better in one side of the country’s region may not be evenly distributed and have the same
degree of importance in another within the same country.

Comparison on small scale may be under taken as India will become a second case study in the
scenario on account of how certain factors favor or disfavor the ease of starting of running the
existing business in both countries with rankings compared to obtain the true stand of the two
though the main focus here is on Uganda for the relevant suiting analysis and the final conclusive
remarks as a core mandatory of this research project. The type of business, capital requirements,
market requirements and the documentation process often over ride each other in inter
relationship aspects for a base, without clear vision and focus the determination of a new
business future and success may stand on uncertain future be it on small or large scale not paying
attention to the presence of economies of scale by large.

After the research we zeroed at the factors easing the start of the business as electricity,
documentation, finance loans and the credit offered by banks, government subsidies among
others as the main but the respondents of 175 out the 200 target have contributed towards the
project with zeal.

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INTRODUCTION.

Kampala City, the capital of Uganda, is one of the fastest growing cities in Africa. The
population is reaching 2 million and its economy is booming. Kampala is now characterised by a
landscape of new infrastructures and buildings: roads, shopping malls, hotels, apartments, etc.

With less than the equivalent of 10,000 USD you can start a business in trade or small industries
with the governments relaxed policies to attract the FDI into the country are worth of praise
considering the influx of new businesses in the smallest but the blue ocean market it is of no
coincidence that taking up a new opportunity comes with entrepreneurial mindsets for those with
the zeal to settle for as in this research the entire focus is zeroed towards ease of running a
business in the country and the factors be it internal or external allowing the identified process
flow with an ease.

As one of the governments strategic programmers, in 2009 the there was a scrap off of minimum
capital requirement for the national citizens who are and yet to swim in the entrepreneurial
competitions as new entrants but for the foreign investors through FDI scheme a minimum
capital requirement of $100,000 was mandatory non-negotiable without sole set up in
transportation and foreign exchange ventures, for a foreign player to take part in these identified
national schemes there will be a need for collaborative or strategic alliance with existing
nationals as shareholders in the joint ventures. This is not intended to stop foreign players from
pouring into but rather offer benefits to promote nationalistic gestures as the government
promises to deliver in every platform for the demands the citizens entrusted in them.

Due to the political up heavens since, the country suffered peace that looked far from an arm’s
length which in modern day economic theories when applied seem to scare potential investors
through FDI not leaving out nationals. The return from investment may be tied in risky decisions
made but not as for this that seem uncertain though there is high belief and hope after a settled
peace talks and now all is gearing towards economic recovery though the un answered questions
still linger around. In an effort to bridge the investment gaps, the world bank has identified in the
2018 report and suggest that countries lower down their regulations and create an investor free
environment with limited restrictions for better focus which Uganda is not an exception but has
to focus on improving ease of starting business, getting credit, trade across borders, getting
electricity and ease of enforcing contracts.

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THE PROCEDURE IN DETAIL TO OPEN A BUSINESS IN UGANDA

Meaning of a business:

An organization or economic system where goods and services are exchanged for one another or for
money.
Every business requires some form of investment and enough customers to whom its output can be sold
on a consistent basis in order to make a profit.

Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is

PepsiCo, while a mom-and-pop catering business is a private enterprise.

what exactly is a start up?

A startup is a young company that is just beginning to develop. Startups are usually small and
initially financed and operated by a handful of founders or one individual. These companies offer
a product or service that is not currently being offered elsewhere in the market, or that the
founders believe is being offered in an inferior manner.

Funding a Startup
In the early stages, startup companies’ expenses tend to exceed their revenues as they work on
developing, testing and marketing their idea. As such, they often require financing. Startups may
be funded by traditional small business loans from banks or credit unions, by government-
sponsored Small Business Administration loans from local banks, or by grants from nonprofit
organizations and state governments. Incubators can provide startups with both capital and
advice, while friends and family may also provide loans or gifts. A startup that can prove its
potential may be able to attract venture capital financing in exchange for giving up some control
and a percentage of company ownership.

Valuing a Business with no Revenue

Because startups don’t have much history and may have yet to turn a profit, investing in them is
considered high risk. Here are some ways that potential lenders and investors can value a
startup in the absence of revenues which are universal and widely accepted with Uganda Africa
at large being a non-exceptional case:

1.The cost to duplicate approach looks at the expenses the company has incurred to create its
product or service, such as research and development and the purchase of physical assets.
However, this valuation method doesn’t consider the company’s future potential or intangible
assets.

2.The market approach looks at what similar companies have recently been acquired for.
However, the nature of a startup often means that there are no comparable companies, and even
when there are comparable company sales, their terms may not be publicly available.

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3.The discounted cash flow approach looks at the company’s expected future cash flow. This
approach is highly subjective.

4.The development stage approach assigns a higher range of potential values to companies that
are further developed. For example, a company that has a clear path to profitability would have a
higher valuation than one that merely has an interesting idea.

Because startups have a high failure rate, would-be investors should consider not just the idea,
but the management team’s experience. Potential investors should also not invest money that
they cannot afford to lose in startups. Finally, investors should develop an exit strategy , because
until they sell, any profits exist only on paper.

This project provides objective measures of business regulations and their enforcement across
190 economies and selected cities at the subnational and regional level. Doing business, the
project, launched from 2000 to the later years of operation, looks at domestic small and medium-
size companies and measures the regulations applying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it

applies to local firms. It provides quantitative indicators on regulation for starting a business,
dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and
resolving insolvency. Also measures features of labor market regulation. Although does not
present rankings of economies on the labor market regulation indicators or include the topic in
the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.

Doing Business Doing Business by gathering and analyzing comprehensive quantitative data to
compare business regulation environments across economies and over time, encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others
interested in the business climate of each economy

In addition, offers detailed, which exhaustively cover business regulation and reform in different
cities and regions within a nation. These reports provide data on the ease of doing business, rank
each location, and recommend reforms to improve performance in each of the indicator areas.
Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that has ranked. Doing Business subnational reports.

Doing business, the first report, published in 2003, covered 5 indicator sets and 133 economies.
This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case
scenario in the largest business city of each economy, except for 11 economies that have a
population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia,
Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) were also

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collected data for the second largest business city. The data for these 11 economies are a
population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to
provide an objective basis for understanding and improving the regulatory environment for
business around the world

Procedures to legally start and formally operate a company (number) Preregistration (for
example, name verification or reservation, notarization)

• Registration in the economy’s largest business city

• Post registration (for example, social security registration, company seal)

• Obtaining approval from spouse to start a business or to leave the home to register the
company

• Obtaining any gender specific document for company registration and operation or national
identification card

• Time required to complete each procedure (calendar days) Does not include time spent
gathering information

• Each procedure starts on a separate day (2 procedures cannot start on the same day)

• Procedures fully completed online are recorded as ½ day

• Procedure is considered completed once final document is received

• No prior contact with officials Cost required to complete each procedure (% of income per
capita)

• Official costs only, no bribes No professional fees unless services required by law or
commonly used in practice

• Paid-in minimum capital (% of income per capita)

• Funds deposited in a bank or with third party before registration or up to 3 months after
incorporation

To make the data comparable across economies, several assumptions about the business and the
procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes. The business: - Is a limited liability company (or its legal
equivalent). If there is more than one type of limited liability company in the economy, the most
common among domestic firms is chosen. Information on the most common form is obtained

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from incorporation lawyers or the statistical office. – Operates in the economy’s largest business
city.

For 11 economies the data are also collected for the second largest business city. – The entire
office space is approximately 929 square meters (10,000 square feet). – Is 100% domestically
owned and has five owners, none of whom is a legal entity; has a start-up capital of 10 times
income per capita and has a turnover of at least 100 times income per capita. – Performs general
industrial or commercial activities, such as the production or sale of goods or services to the
public. The business does not perform foreign trade activities and does not handle products
subject to a special tax regime, for example, liquor or tobacco. It does not use heavily polluting
production processes. –

Leases the commercial plant or offices and is not a proprietor of real estate and the amount of
the annual lease for the office space is equivalent to the income per capita. – Does not qualify for
investment incentives or any special benefits. – Has at least 10 and up to 50 employees one
month after the commencement of operations, all of whom are domestic nationals. – Has a
company deed that is 10 pages long. The owners: - Have reached the legal age of majority. If
there is no legal age of majority, they are assumed to be 30 years old. – Are sane, competent, in
good health and have no criminal record. – Are married and the marriage is monogamous and
registered with the authorities. – Where the answer differs according to the legal system
applicable to the woman or man in question (as may be the case in economies where there is
legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business in Uganda – Procedure, Time and Cost No. Procedures Time to Complete
Associated Costs 1 Reserve the company name Agency: Business Registry The entrepreneur
submits a standard form with three different business names to check the availability. Once the
availability is confirmed, the entrepreneur can reserve the name, which will be valid for 30 days.
The name search has been computerized. This process can be completed on the spot at the
Business Registry. The ‘data officer’ signs the name search form approving the name of the
company. 1 day fees included in procedure

Prepare the company documents with a lawyer Agency: Law firm The entrepreneur prepares the
Memorandum and Articles of Association with a lawyer. The Business Registry requires
entrepreneurs to use a lawyer to draft the MOA. The MOA has to state the objectives of the
company; list and postal address of the shareholders and include the articles of association.
Copies of the passports or nationality IDs are also attached. The lawyer who drafts the
Memorandum and articles of association must be an enrolled advocate in the republic of Uganda
and must hold a valid practicing license for that specific year. 1 day SSP 2,500

Pay the fees and obtain the Certificate of Incorporation from the Business Registry Agency:
Business Registry The advocate collects the necessary documents (name search form signed,
MOA) and pay the fees at the business registry before to obtain the Certificate of Incorporation.

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At the registry, the documents are assigned to one of the legal counselors seated at the business
registry. There are 9 people working as legal counselors divided in 3 sections: 4 for limited
liability companies, 3 for business names and partnerships and 2 for NGOs. They check the
activities, capital and shareholders of the companies. After approval by the legal counselors, the
certificate of registration is printed and signed by the Registrar. The Registrar is the only person
who can sign the certificate. This certificate has to be renewed at the registry every year. 2 days
SSP 39,000 4 Obtain an Operating License Agency: Government of Jubek State The
entrepreneur fills in a form, presents the Certificate of Incorporation, indicates the address of the
company headquarters, and pays the fees to the Jubek State Revenue Authority.

An official from the Directorate of Trade should visit the office to confirm its whereabouts, but it
does not happen in practice. 2 days SSP 5,000 5 Obtain a Trading License Agency: The Payam
an application form is filled out and the companies’ documents are submitted to the Executive
Director at the Payam (Kampala City Authority). 2 days (simultaneous with previous procedure)
SSP 1,800 6 Inspection by the Payam Agency: The Payam the Payam does an inspection of the
business premises. 1 day (simultaneous with previous procedure) no charge 7 Register with the
Ministry of Finance and request a Tax Identification Number (TIN) Agency: Ministry of Finance
Companies need to request a TIN number from the Ministry of Finance. 7 days (simultaneous
with previous procedure) no charge 8 Inspection and delivery of the TIN number Agency

Ministry of Finance The directorate of taxation inspects the location to verify the address. The
Ministry of Finance wants to reduce the occurrence of ‘brief-case’ companies (people working at
home or from a hotel). Upon obtaining a TIN, all companies are required to pay an amount equal
to 10% of their monthly rent as a tax. 1 day (simultaneous with previous procedure) no charge.

Register with the Chamber of Commerce Agency: Chamber of Commerce All businesses must
register with the Chamber of Commerce in order to obtain tax clearance and conduct certain
commercial operations. Additionally, the membership card/Chamber of Commerce certificate is
required to open a bank account. Only the certificate of incorporation is needed to register with
the Chamber of Commerce. The Chamber of Commerce has 4 categories of membership. All
local companies with purely Ugandans ownership can be silver member or higher. The fees are:
Ordinary member: SSP 100 paid once and annual subscription fee of SSP 850 every year. Silver
member: SSP 100 paid once and annual subscription fee of SSP 1850 every year. Gold member:
SSP 100 paid once and annual subscription fee of SSP 3700 every year. Associate member: SSP
100 paid once and annual subscription fee of SSP 7400 every year. 7 days (simultaneous with
previous procedure) SSP 1950

Register with the Ministry of Labor Agency: Ministry of Labor Part X of the Labor Act of
Sudan (1997) establishes that the company must deposit the basic work and penalties regulations
with the competent labor office. The Ministry of Labor approves the contract of the company’s
employees. Once a year, the Ministry of Labor asks the company to submit the list of its
employees. 1 day (simultaneous with previous procedure) no charge.

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Open a separate bank account for social security payments Agency: Bank There is no social
security fund or institution yet in Uganda. As a temporary measure, the Ministry of Public Labor,
Public Service & Human Resource Development of the Government of Southern Sudan issued a
circular (Circular J/5/21, March 22, 2010) instructing companies to open a separate bank account
to deposit social security payments until a new mechanism is devised. 1 day (simultaneous with
previous procedure) no charge.

. Obtain a company seal Agency: Seal maker The Company Act of 2012 requires companies to
obtain a company seal. The seals can be acquired at any shop. 1 day (simultaneous with previous
procedure) SSP 90.

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THE CURRENT SCENARIO OF THE EASE OF DOING BUSINESS IN AFRICA
RANKINGS ACCORDING TO WORLD BANK:

1 Doing Business 2019 Fact Sheet: Sub-Saharan Africa What are the ranking trends? • Mauritius
joins the group of top 20 economies this year. It is the highest ranked Sub-Saharan African
economy. The second highest ranking economies in the region are Rwanda (29) and Kenya (61)
Uganda (185), Eritrea (189), and Somalia (190) are the lowest ranked economies in the region.

Other large economies in the region and their rankings are Democratic Republic of Congo
(184), Ethiopia (159), Nigeria (146), Tanzania (144), Sudan (162), and Uganda (127). The
region’s economies perform best in the area of Starting a Business (122).

Rwanda ranks among the best globally in the Doing Business areas of Registering Property (with
a rank of 2) and Getting Credit (3). In registering property, Rwanda has an efficient land registry
where it takes 7 days to transfer property and costs only 0.1% of the property value, the same as
in New Zealand.

The region underperforms in the areas of Getting Electricity (145), Trading Across Borders
(139) and Registering Property (131). It takes on average 112 days for a business to obtain a
permanent electricity connection to the grid in Sub-Saharan Africa, compared to a global average
of 86 days. What are the reform trends?

This year’s report marks the sixth year in a row that Sub-Saharan Africa leads with the highest
number of business regulatory reforms captured by Doing Business. • One-third of all business
regulatory reforms recorded by Doing Business 2019 were in the economies of Sub-Saharan
Africa. With a total of 107 reforms, Sub-Saharan Africa has a record number for a third
consecutive year.

In addition, this year also saw the highest number of economies carrying out reforms, with 40 of
the region’s 48 economies implementing at least one reform, compared to the previous high of
37 economies two years ago. The largest number of reforms implemented in the region was in
the areas of Enforcing Contracts (27), followed by Starting a Business (17), and Registering
Property (with 13 reforms)

17-member states of the Organization for the Harmonization of Business Law in Africa, known
by its French acronym OHADA adopted a Uniform Act on Mediation in 2017 (filling a
legislative void that existed in most OHADA member states) which introduced mediation as an
amicable mode of dispute settlement. • Four Sub-Saharan African economies – Togo, Kenya,
Côte d’Ivoire, and Rwanda made the list of global top 10 improvers this year. Over the past 12
months, collectively these economies implemented a total of 23 reforms. Rwanda led the region

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in terms of the number of reforms implemented – seven in the past year, while Gabon, Guinea
and Sudan were also among the notable reformers, with five reforms each.

Sub-Saharan African economies recorded eight reforms in the area of getting electricity, the
highest number of any region worldwide. The examples of reforms include: -

Nigeria made starting a business easier by introducing an online platform to pay stamp duties,
leading to a reduction in the time to start a business from 19 to 11 days.

- Burundi increased the transparency of dealing with construction permits by publishing

regulations related to construction online free of charge, improving on the building quality
control index. – Niger made the process for getting an electricity connection faster by increasing
the stock of material the utility carries and by allowing the internal wiring certificate of
conformity to be obtained at the same time as the external connection works, reducing the time
to obtain electricity connection from 97 to 68 days. 2

- Rwanda adopted a new law on insolvency that contemplates protections for secured creditors
during an automatic stay in reorganization proceedings, leading to an improvement on the
strength of the insolvency framework index from 12 to 15. Noteworthy items: • Changes in this
year’s report include renaming of the distance-to-frontier measurement to ease of doing business
score, to better reflect its main purpose of measuring absolute progress towards best practices
(without any change in the actual calculation).

There are no changes to the methodology this year or to the calculation of the Doing Business
Score, which underpins the Doing Business rankings. • This year, Doing Business includes four
case studies that focus on the benefits of: o mandatory and annual training of both public
officials and users of business and land registries; o training for customs clearance officials and
brokers; o robust regulatory framework governing the electricity sector and accrediting the
electrician profession; o training and specialization of judges.

Rankings Data for the Sub-Saharan Africa region Economy Rank (1–190) Ease of doing
business score (0–100) # of Reforms

Angola 173
Benin 153
Botswana 86
Burkina Faso 151
Burundi 168
Cabo Verde 131

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Cameroon 166
Central African Republic 183
Chad 181
Equatorial Guinea 177
Ethiopia 159
Gabon 169
The Gambia 149
Ghana 114
Kenya 61
Lesotho 106
Liberia 174
Madagascar 161
Malawi 111
Senegal 141
Seychelles 96
Sudan 162
Tanzania 144
Togo 137
Uganda 127
Zambia 87

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THE PROCEDURE IN DETAIL TO OPEN A BUSINESS IN INDIA COMPARATIVE
ANALYSIS.

Details – Starting a Business in Mumbai – Procedure, Time and Cost No. Procedures Time to
Complete Associated Costs

1 Obtain a digital signature certificate Agency: Authorized private agency (Federal) The
applicant must obtain a Class-II Digital Signature Certificate from a certification agency
authorized by the Controller of Certification Agencies. These include private agencies like NIC,
E-Mudhra, MTNL Trust line, to which company directors submit the prescribed application form
along with notarized proof of identity and address. A Class-II Digital Signature Certificate can
be obtained for either a period of 1 year or a period of 2 years, and then needs to be renewed for
another 1 or 2 years upon payment of renewal fees. Each agency has its own fee structure,
starting from INR 700. The cost will vary in accordance with the duration of the Digital
Signature Certificate. Once the Digital Signature Certificate is obtained, the authorized personnel
(directors/manager/secretary) are required to register the same with MCA for statutory e-filing. 1
day INR 700 to INR 2,500 per Digital Signature Certificate

2 Reserve the company name online through “Reserve Unique Name” system (RUN) Agency:
Registrar of Companies, Ministry of Corporate Affairs (Federal) The company first looks up the
availability of a name on the MCA website . Part I Company, Producer Company, Unlimited
Company, Private (OPC), IFSC Company, Section 8 Company, Nidhi Company. – Corporate
Identification Number (CIN): Only in case an Existing Company is applying for the Change in
Name, it is required to enter its CIN. – Proposed Name: A Proposed Name option required to be
entered here (the form allows to provide 2 names in the form). After entering a Name, MCA has
provided Auto Check Facility to check the availability of the Name, accordingly the Applicant
and enter the new Optional name, in case the Entity already registered with such proposed name
and again has to make Auto Check.

3 Prepare and notarize affidavit by each founder and proposed director Agency : Notary Each
founder and proposed director has to submit an affidavit confirming that he/she is not convicted
of any offence in connection with the promotion, formation or management of any company, or
has not been found guilty of any fraud or misfeasance or of any breach of duty to any company
during the preceding five years and that all the documents filed with the Registrar for registration
of the company contain information that is correct and complete and true to the best of his
knowledge and belief. A separate notarized affidavit is required for each person. As per the
Companies Act Amendment 2017 (July 27, 2017), Section 7, the requirement for affidavit to be
submitted as part of incorporation documents has been replaced with a requirement of
declaration by the directors. However, in practice, companies continue submitting notarized
affidavits. 1 day, simultaneous INR 10 (stamp paper) + INR 35 (notarizing)

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Pay stamp duties, file the SPICE form and obtain the certificate of incorporation, DIN, PAN and
TAN Agency: Registrar of Companies, Ministry of Corporate Affairs (Federal) Pursuant to
Section 7 (1) of the Companies Act, 2013 and pursuant to Rule 10, 12, 14 and 15 of Companies
(Incorporation) Rules, 2014, the following forms are required to be electronically filed on the
website of the Ministry of Corporate Affairs for incorporation purposes. It is mandatory for
private limited companies to complete the incorporation process using the SPICe Form (Form
INC -32). Applications for director identification number (DIN), Permanent Account Number
(PAN) and a Tax deduction and Collection Account Number (TAN) have been integrated
completely into the Spice form.

4 Make a company stamp Agency: Authorized vendor (Private) As per the amendment to the
Companies Act 2013, making a company seal is no longer a legal requirement. However, making
a company rubber stamp is still commonly used in practice. The stamp is normally required to be
affixed by a director upon signing on behalf of the company in order to file several applications
relevant to business startup. This includes but is not limited to opening a bank account,
application for registration with the Employee State Insurance Corporation (ESIC) and
application for a company Permanent Account Numbers (PAN). 1 day, simultaneous INR 350-
500 6 Open a bank account Agency:

However, in practice, for any operating business, a GST registration is done immediately after
incorporation. To apply for a new registration, the following documents are required – PAN
card/details of business – Valid and accessible e-mail ID and Mobile Number – Documentary
proof of constitution of business – Documentary proof of promoters/partners – Documentary
proof of principal place of business – Details of Authorized Signatories including photographs
and proof of appointment – Details of Primary Authorized Signatory – Business bank account
details – Valid Class II or Class III DSC of 17analyses17it signatory in case of companies and
LLPs; valid Class II or Class III DSC or Aadhaar (for E-Sign option). A maximum of 10
Promoters/Partners/Directors can be added in the form. Passport photographs need to be
uploaded of all the Promoters/Partners/Directors whose details you are adding in the application
form. Further, each passport photograph must be in JPEG format and not more than 100 KB.

The first step to the registration process is the application and verification of PAN number, and
the subsequent issue of a Temporary Registration Number (TRN). The applicant then needs to
submit an application in Part B of FORM GST REG-01, duly signed, along with documents
specified. The application is forwarded to the proper officer who examines it and the
accompanying documents and if found to be in order, approve the grant of registration to the
applicant within three working days from the date of submission of application. The certificate of
registration in FORM GST REG-06 showing the principal place of business and additional
place(s) of business is then made available to the applicant on the Common Portal and a GSTIN
is assigned in the following format: - two characters for the State code; - ten characters for the
PAN or the Tax Deduction and Collection Account Number; - two characters for the entity code;
and – one checksum character. 4 days no charge.
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1 day, simultaneous no charge 10 Register for Profession Tax Agency: Sales Tax Department,
Government of Maharashtra Professional Tax in Maharashtra is levied under Maharashtra State
Tax on Professions, Trades, Callings and Employments Act, 1975.

It is levied on Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society,
Club, Association of Persons, Corporation or any other corporate body in Maharashtra.
Professional Tax in Maharashtra for Organizations: An employer organization is required to get
registered under the Profession Tax Act and obtain a Registration Certificate under which the
payment in respect of taxes deducted from employees’ salaries can be made.

Also as a firm, the organization is required to obtain Enrollment Certificate and pay Profession
tax on its behalf. Delays in obtaining Enrollment or Registration Certificate are penalized at the
rate of Rs. 2/- (Rupees Two) per Day. In case a false information regarding enrollment is
provided, then the Penalty is 3 times of tax amount. The interest for non-payment / delayed
payment of profession tax is 1.25% per month and the Maharashtra state authority can also
impose a penalty of 10% of the amount of tax not paid/short paid/delayed.

There are 2 types of Profession Tax payers: a) Profession Tax Enrollment Certificate (PTEC):
Any person engaged in Profession, Trade and Callings and falling under one or the other of the
classes mentioned in the second column of Schedule I shall obtained PTEC b) Profession Tax
Registration Certificate (PTRC):

Every employer who has employed even a single employee whose salary is above the prescribed
limit for deducting Profession Tax shall obtain PTRC. All new companies must be first obtaining
a Profession Tax Registration Certificate. And then proceed to enroll all employees for a
Profession Tax Enrollment Certificate for any of the employees who have never been employed
(for employees who have been previously enrolled, there is no need to re-enroll). Less than one
day (online procedure) no charge.

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THE LITERATURE REVIEW FROM POST STUDIES IN RELATION TO THE TOPIC.

INTRODUCTION:
In the literature review, there are various concepts that have been undertaken to pinpoint the
case of starting a business in a various countries but the emphasis may be the same in
connection to new ventures or ease of running them in comparative analysis though here we
look into Kampala as the capital of Uganda with its own myriad opportunistic endeavors to
identify the true picture that is presented with the factors on ground which in this case are
slightly compared to India as a second case too in the following post studies conducted by re-
known personalities be it in journals, books or web blogs.

Rosetta Morris (School of Business and Management, Morgan State University, Baltimore,
Maryland, USA)The purpose of this paper is to investigate the relationship between factors
that influence conducting business and the inflow of foreign direct investment (FDI) to Sub‐
Saharan African (SSA) and Asian countries. The factors of business climate defined by the
World Bank in 2006 as ease of doing business were correlated with FDI flows to SSA and
Asian countries. Two factors, “registering property” and “trading across borders”, were found
to be related to FDI over all six years of the study (2000‐2005) for the combined sample. Also,
several factors were found to be related to FDI received by SSA and Asian countries during
various years. A limitation of the study is that the sample included only SSA and Asian
countries. The findings may help SSA and other countries to improve the business climate in
terms of the factors of ease of doing business, in order to attract more FDI. The paper provides
empirical support to the hypothesis that FDI is related to some of the factors of the business
climate. It advances understanding of the determinants of the inflow of FDI to African and
Asian countries and may be particularly useful to international organizations seeking to do
business in SSA and Asian countries.

Dinuk Jayasuriya Improvements in the World Bank’s Ease of Doing Business Rankings: Do
They Translate into Greater Foreign Direct Investment Inflows? 2011.
The world Bank’s Ease of Doing Business reports have been ranking countries since 2006.
However, do improvements in rankings generate greater foreign direct investment inflows? This
study is the first to test such a proposition empirically with Arellano-Bond dynamic panel
estimators using the official rankings from 2006 to 2009. The paper shows this relationship is
significant for the average country. However, when the sample is restricted to developing

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countries, the results suggest an improved ranking has, on average, an insignificant (albeit
positive) influence on foreign direct investment inflows. Although robust, this result should be
taken with caution given that it refers to the average developing country using data across a four-
year time period. Finally, the paper demonstrates that, on average, countries that undertake large-
scale reforms relative to other countries do not necessarily attract greater foreign direct
investment inflows. This analysis may have important ramifications for developing country
governments wanting to improve their Doing Business Rankings in the hope of attracting foreign
direct investment inflows.

Mohamed Tareq Hossain Zubair Hassan Foreign direct investment and the ease of doing
business This paper examines the effect that a country’s business regulatory environment has on
the amount of foreign direct investment it attracts. We use the World Bank’s Ease of Doing
Business February 2015, Volume 151, Issue 1, pp 103–126| ranking to capture the costs that
firms face when operating in a country. Several interesting results emerge. Firstly, the Doing
Business rank is highly significant when included in a standard empirical foreign direct
investment (FDI) model estimated on data averaged over the period 2004–2009. Secondly, the
significance of the overall Doing Business is driven by the Ease of Trading Across
Borders component. Thirdly, the relationship is significant for middle income countries, but not
for the World’s poorest region, Sub-Saharan Africa, or for the OECD. Finally, we find no
evidence that the ease of doing business of nearby countries has an effect on the FDI that a
country gets in general.

Delineating the “Ease of Doing Business” Construct within the Supplier–Customer Interface
Gary Stading Nezih Altay First published: 06 April 2007 The current research provides insight
into the “ease of doing business” construct. Factor analysis of survey responses of supply
managers in the electronics industry was used to test the proposed “ease of doing business”
construct, which includes the three dimensions — information and material services, financial
contract services and personal relations services. Results support a link between a customer’s
assessment of a supplier’s “ease of doing business” and the amount of business conducted with
that supplier. The attributes supported by this research provide the means for managers to
improve and grow business with customers.

Measuring the Ease of Enterprise Simeon Djankov1 First draft: December 2007 The field of
measuring the ease of enterprise is maturing. In 2001, a dozen organizations put together
indicators and ratings of the environment for doing business.2 Six years later, four have

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overtaken the rest and become the source of information for reformers in government, for
investors and researchers. These come from the Fraser Institute’s Economic freedom of the
world, the Heritage Foundation’s Index of economic freedom, and the World Bank’s Doing
Business project and Enterprise surveys.

There is a clear trend: moving from indicators constructed by commercial entities—as a side
business for their clients—to indicators constructed by organizations that provide a public good.
This has brought in improved methodologies and better sources of information. And has resulted
in an innovation: aid flows or advisory services informed by measurement of the ease of
enterprise. The United States’ Millennium Challenge Account is the pioneer in this market.

Improving the business environment is an active development area. There have been notable
successes: reforms in business start-up are so numerous that by the end of this decade it may be
universally easy to start a business. And many African countries have reformed: Mauritius
(ranked 27 in Doing Business 2008) leads the way, with Rwanda, Ghana, Mozambique, Burkina
Faso, Benin, Kenya, and Madagascar all making progress. Eastern Europe, the fastest reforming
region (figure 1), is also the world’s fastest growing region. Estonia, Slovakia, Georgia and
Macedonia—the top reformers worldwide— provide inspiration to the governments of many
countries.

Does the ‘Ease of Doing Business’ in a Country Influence its Foreign Direct Investment Inflows?
Senior Capstone Project for Katherine Piwonski – 1 Foreign direct investment has been studied
for years. It is generally accepted as a positive influence on the domestic market and
governments have begun actively seeking it out. This study is meant to possibly connect
government actions, for which the World Bank’s ‘Doing Business Index’ was used as a proxy, to
an increase in foreign direct investment inflows. The goal of this study is to help governments
make more informed decisions about if and how to attract foreign direct investment. The
research was done by running a regression model to find a connection between changes in
foreign direct investment inflows and the Doing Business rank of each country. The results of the
regression show that by increasing their country’s Doing Business rank one level, a government
can bring in over $44 million USD. Thus, the model has proven that there is a connection
between government actions and foreign direct investment; countries can actively pursue foreign
investment dollars successfully. The Doing Business Index points to practical areas which are
important to multinational companies, such as the time it takes to compute and pay taxes, which
the government can control. Therefore, this study not only proves that it is worthwhile for
governments to change in order to attract foreign investment but gives the beginning of a
blueprint for what government actions bring in the most investments.

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TITLE AND OBJECTIVES:

TITTLE:

The tittle for the study will be exploring how the ease of doing business factors impact the start
of new businesses in Kampala, Uganda. A data will be collected and analyzed for the same in
order to obtain a divergent view in lieu, little will be compared to the second case under study
that’s India through the aid of a questionnaire for the primary data.

OBJECTIVES OF THE STUDY:

Generally, the objective is to study the factors that favor ease of starting a new venture in Kampala
the capital of Uganda and focusing on how regulation and de-regulation impacts the process of
starting a new venture while this will easily be compared to India when demand arises. Economic
liberalization is generally described as the relaxing of government regulations in a country to allow
for private sector companies to operate business transactions with fewer restrictions. With
reference to developing countries, this term denotes to opening of their economic borders to
multinationals and foreign investment. Many economists explained that economic liberalization is
“opening up” to the rest of the world with regards to trade, regulations, taxation and other areas
that generally affect business in the country.
Investors face problems to enter in emerging market countries when there are lots of barriers.
These barriers can include tax laws, foreign investment restrictions, legal issues and accounting
regulations that can make it difficult or impossible to gain access to the nation. The economic
liberalization process begins by relaxing these obstacles and relinquishing some control over the
direction of the economy to the private sector. This often involves some form of deregulation and
a privatization of corporations.
In liberalized economy, unlike for the war ravaged Uganda portfolio sounds like a new
terminology which if known before Investors benefit by being able to invest a portion of their
portfolio into a diversifying asset class. Commonly, the correlation between developed countries
such as the United States and undeveloped or emergent countries is comparatively low. Although
the general risk of the developing country like Uganda by itself may be higher than average, adding
a low correlation asset to your portfolio can reduce your portfolio’s overall risk profile. However,
a discrepancy should be made that although the correlation may be low, when a country becomes
liberalized, the relationship may actually rise over time. This happens because the country becomes
more incorporated with other parts of the world and has become more sensitive to events that
happen outside the country. A high level of integration can also lead to increased contagion risk
which is the risk that crunches that occur in different countries cause crises in the domestic country
as there are chances be it not to compare this to the developed ones.

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With the advent of Information Technology in contemporary period, a great opportunity lies
between the sector which if publicized will be of great service to the citizens and the government
in reputation globalization process increased and it made possible transfer of real time human labor
across nations, without transfer humans themselves. Additionally, it removed all boundaries which
hinder free flow of information. It has many benefits to investors such as sharing, nurturing and
development of knowledge in societies which earlier had access only to substandard or non-
updated information. As always package is coupled with some grim realities too. All over the
world, Governments of countries like Uganda has lost their capacity to control and ward of against
malevolent, false, sensitive information and content due to internal conflicts and continuous strive
for government power struggle.
Rise of Islamic State establishes that information technology revolution has helped global
Terrorism evidence within the boundaries of the country with Uganda an enemy as preferably
labeled in today’s world with Egypt and the Arab peninsular block pushing forth for the later or
future prospects of attack yet business and investment being given a death ear. Furthermore,
explicit content is freely available on web, to which immature children have unhampered access.

In specificity we intend to zero at finding how each factor as portrayed by the world bank report
is assessed on the ground to drain its factual effect in the number of respondents for or against it.
The comparison will be drawn closer in ranks of business ease, India ranks at 77 while Uganda is
in the bottom 15 with 185 rank out of 190 countries as the total population under study of the
2019 trading economics report. In this analysis we set eyes on Asia’s fastest growing economy in
competition with a war ravaged but now on recovery with vast investment opportunities of FDI
with all its hospitable government doing it all in demand for economic recovery. This may be
viewed in cluster as individual sectors contributions toward the development of a country like
Uganda but what will this have on impact if the rules and regulations don’t favor the grooming
of new ventures and promotion of FDI flow as seen in the following points of impacts to reflect a
basic study on the factors cum ease of doing or staring a business.

Basics.
Political Risks Reduced: Liberalization policies in country lessens the political risks to investors.
The government can attract more foreign investment through liberalization in economic policies.
These are areas that support and foster a readiness to do business in the country such as a strong
legal foundation to settle disputes, fair and enforceable contract laws, property laws, and others
that allow businesses and investors to operate with confidence. Also, government administration
is a common target area to be streamlined and improved in the liberalization process. All these
modifications can reduce the political risks for depositors the country is ready lay down tribal
conflicts in pursuit for regional cooperation and starting with neighbors like Kenya, Tanzania and
Uganda as potential targets of trade and mutual cooperation for benefit.
Industrial Growth Rate: Liberalization is imperative for the growth of Indian economy. Barring
few years, industrial growth rate has not been so much inspiring. Share of Industry still remains
stagnantly low. It is discouraging that India has transitioned to be a service led economy, directly
from an agrarian one. One compensation of this is end of policy of imports substitution which

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derived industrial growth up to 1990 and even as 2011 was predicted as the year of independence
and reforms would have followed little has yet been done by the government. Foreign companies
got free access to Indian markets and made domestic products uncompetitive. They perceptibly
had better access to technology and superior economies of scale.
India’s comparison to Uganda in the status also trailed in the arena of Research and innovation
Import substitution required certain degree of investment and efforts in domestic production. It
was done even when imports were inexpensive. This resulted in good and better capacity building
up to that time. This was combined with constant technology denial by west, which further pushed
government to spend on R&D. Technology Denial ended with liberalization and globalization. Till
that time Indian Industry was better and modern than that of Uganda which is relative to the
difference in gaining of then independence if a street walker may prefer to say but we live in a
competitive world where past histories matter less to depict states of development.

Impact on Small Scale on Uganda economy and this Impact of small scale is evaluated from the
beginning of colonization in 18th century. Colonization of the British rule that left too little to the
plate of self-reliance on the nation can be considered as 1st movement of globalization. In pre
colonization period oil, cooper, gold mercury and handicraft was popular across the globe with
focus on her fertile soils for agricultural economy transformation to a new industrialized one and
with the initiation of industrial revolution along with foreign rule in the economy underwent major
setback and much of its home-grown small scale cottage Industry was ruined. After independence
government made many efforts to recuperate small scale sector of coffee and textile and
agricultural produce by reserving items exclusively for it to manufacture. With liberalization, list
of reserved items was substantially curtailed and many new sectors were thrown open to big
companies not long enough the conflicts ruined every hopes alive.
.
If experts evaluate these sectors from the perspective of free markets, some progress is visible.
There has been high level education available in India and deregulation has resulted in growing of
private engineering and medical colleges. But in reality, this had far reaching upsetting effect on
society. These new colleges accommodate only small proportion of candidates at very high costs.
In recent times, an Independent organization ‘Transparency International’ came out with report
claiming that south Uganda medical system is most corrupt in the world. High fees of education
force many aspirants to take educational loans from banks. After qualifying job market is unable
to absorb majority of them. Practice turns out to be option of last resort. Now to make a decent
living and to pay back the loans person is attracted by dishonesty. Subsequently, when many
similar cases are put together, corrupt system is developed.
It is observed that after deregulation and liberalization, government along with other sectors, pulled
its hand from social sectors too. In Public Sector less than mediocre to mediocre options are
available. This leaves huge proportion of hopeful students and expecting parents.
It is well recognized that liberalization has major impact on the world’s youngest country and
made it a huge consumer market. Currently, most of the economic changes in the country are
based on the demand supply cycle and other economic factors. Today, in comparison to India as
a case two for study, has made good status in economy in terms of market exchange rate and 4th

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largest in terms of the purchasing power parity. Economic liberalization is generally thought of
as a useful and necessary process for developing nations. The fundamental goal is to have clear
capital flowing into and out of the country in order to increase growth and efficiencies within the
domestic country. The effects following liberalization are what should interest investors as it can
provide new opportunities for diversification.

SUMMARY OF THE OBJECTIVES:

 To explore the factors that aid opening/start of new business in Kampala, Uganda.
 To compare the ease of starting business in both Uganda and India countries with focus
only on Uganda Kampala city with its regulatory or de-regulatory rules.
 To compare if ease of business reveals true picture of the ground than the estimates.
 To assess the factors favoring the mushrooming of new business and there course effect
tendencies in each cases.

SCOPE OF STUDY:

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A sample base of around 200 questionnaires will be filled through online modes to obtain the
data on the most presentable factors of the research, analyze the data and present it to consumers
of different disciplines to partake in the decisions of either selecting one or the other after course
effect analysis to be the base in the study for a new venture.

With the following as the proposed data retrieval mode if filled and will portray the required
results of:

1. The online questionnaire method

2. Focus will be on public and the private start ups
3. The small scale and medium scale of entrepreneurship shall be on the focus.
4. Not a single factor shall be under scrutiny but all shall be looked at as a whole to pull off
which has the greatest impact on the start of business in Kampala, Uganda.

The factors to be assessed under the study are along the world bank rankings in the ease of doing
business that starts with, ease of getting electricity, documentation, number of days involved in
opening, trade across borders, investor protection, research facilitators, government aid on
subsidies and getting credit, enforcing contracts and resolving insolvency.

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WORLD BANK DATA ON THE EASE OF DOING BUSINESS AND RANKINGS IN
2019

The doing business report ranks countries according to the basis of distance to frontier (DTF) A
score that shows the gap of an economy in comparison other global best performers. The Indian
DTF standings in ranks improved to 67.23 from 67.76 back in 2018 quarter though some
indicators such as permits construction is 129, trading across boarders at 80, starting a business
137, getting electricity at 24 and enforcing permits 163. The world bank has recognized India as
one of the top 10 improving performers for the 2nd year in a row as a big boost for NDA
government though this performance is being matched past by neighboring Bhutan yet still the
country continues with its notch to strive for better opportunities in better ranks.

In comparison to Uganda, the ranks are 185, in the global ease of doing ease, construction of
permits at 52, trading across boarders at 26, starting a business at 63, getting credit at 10, and
enforcing contracts at 58 while getting electricity stands at 0.0 with no stable power sources,
paying taxes at 78, property registration at 36 and protecting investors is at 26 lowest in score as
the future looks uncertain.

Doing Business measures—11 areas of business regulation as per world bank considerations.

Indicator set What is measured

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liabil

Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliabi

Registering property Procedures, time and cost to transfer a property and the quality of the land

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate

Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulatio

Trading across borders Time and cost to export the product of comparative advantage and import

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Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial p

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and th

Labour market regulation Flexibility in employment regulation and aspects of job quality

Business captures several important dimensions of the regulatory environment as it applies to

local firms. It provides quantitative indicators on regulation for starting a business, dealing with
construction permits, getting electricity, registering property, getting credit, protecting minority
investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labour market regulation. Although Doing
Business does not present rankings of economies on the labour market regulation indicators or
include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business, it does present the data for these indicators.

SIGNIFICANCE OF THE STUDY:

The study will throw light on what are most effective wheel drivers when it comes to investment
in juba, compared to India easily and traditionally opening a new business seemed easier but in
modern new day it’s become a great deal of analysis thanks to globalization and increased
competition. This paper evolves to be of benefit to the researchers, students and investors who
will want to take a first hand in risky opportunities to develop a strategy for better business
survival in comparative analysis of the two.

Outcomes from this research shall be of reflection on whether the ease of doing business really
reveal true picture of an identified opportunity in a given country, what factors to embark on first

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in market entry, whether similarity exist between the two countries under study and how both
can co-exist through FDI for mutual benefits of the

opening a new business depends on several factors; the size of the target population is
important. If the target population is very large (e.g. both the product and service dealers)
then we need a fairly large sample covering comprehensively the whole country in
population other than the little minute city of Kampala in order to be representative of a
sample being projected on the whole population analysis.

If the target population is much smaller, then the sample can be smaller but still be
representative. There must be enough participants to make the sample representative of the
target population. Lastly, the sample we have taken is so large that effort would be made to
enrich and draw the required data if done by hard copy yet that seems too expensive than the
easy online format in a case that the study takes too long or is too expensive!

The beneficiaries of this research will be classified as follows:

 Government agencies that might want to use it for decision making in case of altering
the decisions earlier on made.

 Students conducting more researches related to the topic if need be to cite and use it
as a reference tool.

 New investors and business men who will need as reference check to assessing the
factors for the start of new ventures including entrepreneurs.

LIMITATIONS FOR THE STUDY IN PROCESS:

The research is only limited to one country that’s Uganda and Kampala the capital in particular
other than the whole country or region in the continent, may be India vs Uganda comparisons but
this is done in small context and the questionnaires will be filled of up to 200 filled and analyzed
but a snug will be hit as online form filling can never be easily permissible due little internet area
coverage and technology inadequacy in the world’s newest nation.

Larger sample size would portray more quantifiable and eloquent base for analysis but this has
been limited as the study is focused on only the Capital Kampala neglecting the other areas with

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chances that not all uniform laws and requirements apply though in the same country than other
23 neglected state capitals this comes in disguise as to assume or draw a hypothesis will be taking
the few sample and projecting on the others.

Researcher biasness may be another limitation with un willful response from the other uninterested
student to give correct data, there is also poor technology in relation to the internet from the African
least developed countries hence obtaining data can be such a nightmare as a limitation too.

Limitations due to methodological problems.

such as unfamiliarity with system of online form/questionnaire due to constraint of technology

inefficiency and low internet connection ad in access yet this can be addressed by clearly and
directly identifying the potential problem and suggesting ways like hard copy data collection yet
this too expensive with transport and access costs to be incurred in the process of data collection.

Issues with sample and selection

Sampling errors may occur as here we use a probability sampling method is to select a sample,
with focus on gender, capital requirement, location in the city not the whole country, mainly
traders and service providers and not all traders but the focus is zeroed to only those influenced
and are yet to jump into the line of new start-up businesses but that sample does not reflect the
general population or appropriate population concerned. This results in limited result sought
basing on the factors that facilitate the ease of starting a new business in Uganda which can be
termed as “sample bias” or “selection bias.” For example, the research conducted on the survey
is to obtain my research results, my samples (participants) were asked to respond to the survey
questions genuinely. However, they might have had limited ability to gain access to the
appropriate type or geographic scope of participants. In this case, the people who responded to
my survey questions may not truly be a random sample be giving genuine data as they may want
to conceal for confidential purposes.

Insufficient sample size for statistical measurement

When conducting the study, it is always important to have a sufficient sample size in order to
conclude a valid research result. The larger the sample, the more precise your results will be. But
in this case my sample size is too small and focused majorly on the online content of the
respondents from the country given the internet limitations, it will be difficult to identify
significant relationships from the data.

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Normally, statistical tests be it one way or two ways can be of requirement on a larger sample
size to ensure that the sample is considered representative of a population and that the statistical
result can be generalized to a larger population but in this case the sample is smaller than 2oo
respondents and It is not a good idea to understand how to choose an appropriate sample size to
take up conduct of my research as the distance coverage acts as an obstacle.

Lack of previous research studies on the topic

Citing and referencing prior research studies constitutes the basis of the literature review of my
thesis or study, and these prior studies could provide the theoretical foundations for the research
question I am investigating. However, depending on the scope of research topic, prior research
studies that are relevant to my thesis are limited, directly or indirectly not linked to the topic.
When there is very little or no prior research on a specific topic, the need to develop an entirely
new research typology seems like a nightmare. In this case, discovering the limitation can be
considered an important opportunity to identify new gaps in the prior literature and to present the
need for further development in the area of study in relation to the ease of business start in
Uganda.

Methods/instruments/techniques used to collect the data

After the research analysis completion findings (in the Discussion section), I have realised the
manner in which I collected the data or the ways in which I have measured the variables is
limited to my ability to conduct a thorough analysis of the results. For example, certain questions
I asked in the research questionnaire may not have applied to certain group and class of traders
especially trading across boarders being asked generally yet this does not apply to small scale
domestic traders not involved in global trade or trade beyond the territorial boarders.
Limitations that arise from situations relating to the researcher vs respondents cognitive clash
(whether the direct fault of the individuals or not) should also be addressed and dealt with, and
remedies to decrease these limitations–both hypothetically in my study and in future studies–
should be proposed to address the impact without any disagreement and the creative topics and
questionnaire should be too easy to understand and reduce the bias.

Limited access to data

The research involved surveying certain people or organizations, yet I have faced the problem of
having limited access to these respondents. Due to this limited access, the system of data
collection was shifted to redesign or restructure your research in a different way. In this case, I
have explained the reasons for limited access and will be sure that the findings will or fairly still
be reliable and validate despite this limitation.

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Time constraints
Just as time is always a valuable asset, it’s been a limitation on the deck of the research as the
college authorities facilitating the research demand timely submission and response from the us
the researcher but this doesn’t go well with the respondents turn up as they do it at their own
pace which is a limitation to both research in data collection and the concerned authority in
seeking forward the results and response to higher authorities.

RESEARCH METHODOLOGY:

In this we use the explorative research design with an aim to obtain firsthand information of
primary nature through a questionnaire filled by a target of around 200 respondents to get the
factual findings and demand course effect relationships. To draw the fine line across all the
factors that favour or disfavor ease of doing business in the nation. This depict the various
methods to be followed in the study of the investment patterns and problem break down in
detailed study to come up with the most suitable conclusions based on the study. Here we focus
on the research design in detail. This, the most suitable research design method will be
explorative as we seek to find out more on the insights and comprehension of the situation how

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investment really occurs in the different demographics for both national and foreign
entrepreneurs.

OBJECTIVES IN THE RESEARCH METHODOLOGY

The objective on this research design has been into a multiplicity of factors that are studied and
thus the explanation on the reasons of doing it in more than one research design not in preference
but with an aim to retrieve data be it in experimental design, descriptive narrative and explorative
all these are aggressively studied side by side with others with little differentiation patterns as the
questions hold of design.

RESEARCH DESIGN:

With the variations on factors aiding the choice of investors to splash cash in new ventures,
explorative research design tends to give a green light and holistic study on finding out what
really is the force behind the push or ahead of the pull to a particular option to pull a trigger on
the start.

Experimental Designs
These usually involve two groups in the study as an experimental group as the respondents
involved directly in the new start up running or those that are already on ground and taking the
process in venture wise, which receives an intervention of some sort, and a control group that is
either public or government facilitated enterprises, which either receives no intervention, or a
non-effective one. Clinical trials are usually of this type. The aim of this research is to remove all
possible alternative explanations for the results (high internal validity) and to make them as
generalizable as possible (high external validity). Useful when you want to test a particular
intervention like weather documentation duration has an effect on the process of new venture
start up, and you can disguise whether it is being used appropriately or not. Less useful when
you need to understand why something is happening.

Quasi-Experimental Designs
These are used when an experimental design would be ideal but is not possible, for example in
question twenty that talks about foreign trade being permissible at the boarders, this isn’t
possible but can be if it applies to the businesses that are exposed to the global trade but the
small businesses like the restaurants or saloons are not in where close to making this a
possibility. It is usually tested before and after an intervention to see what effect it has had.

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Less useful again, these types of studies try to maximise validity. Useful when a full
experimental design is not possible but you need that kind of separation of the groups.
when you can carry out a full experimental design, or you need to understand why something is
happening.

Survey Research
Surveys like this are more factual, inferential or exploratory. They may either start with an idea
that is how other factors influence the start of new business in Uganda and try to prove it by
collecting information, or collect a large amount of information from 200 respondents and see
what emerges. The main issue with a survey is reliability: whether the survey accurately assesses
the desired variable. Surveys are usually pre-tested on a small sample before being used more
widely and, for this reason, as on this project I have chosen to use online questionnaires rather
than develop a hard copy and getting it filled openly but the preference online is used either on a
large sample or as structured interviews on a smaller sample. Useful when you want to gather
data from lots of different people and you can formulate questions that can be answered fairly
simply within the online platform than the hard copy way..
Less useful when you want to explore individual experience in detail.

Action Research and Cooperative Inquiry

This is to small extent on the individual responds within Ludhiana but have close links to host
citizen countries where the parents have established ventures but with limited access to the
internet usage, this type of research assumes that the researcher reliable respondent is a key part
of the research, rather than an external force. It emerged from the idea that the best way to learn
about an organisation is to try to extract information in it, and also that those involved in project
of new venture should be encouraged to influence the change. Useful when you, the researcher,
are part of the sample size and involved directly or indirectly in the filling and giving the needed
data..
Less useful when you need to gather hard data from an objective viewpoint which is the most
influential factor in the process of the ease of doing and starting a business.

TARGET POPULATION:

The target population for this research study will be those nationals and foreigner that want to
indulge in entrepreneurial activities of starting new businesses in Kampala, Uganda with an aim
and benefit of desire to make profits out of the ventures and in this research work they have been
classified as follows:

 Small scale operational ventures

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  Large scale operational ventures
 Public companies/ organizations
 Private companies and operational ventures
 Entrepreneurs yet to start the process
 Government officials
 Foreign investors

The above descriptions are all clustered under one umbrella of study without individual studies
conducted but studied as a whole target population by forwarding the online questionnaires to the
specific groups and extracting the needed data and information for transformation if need be in to
suit the research results.

Online mode of primary data extraction has been chosen due to constraints related to travel and
costs if the research has to be taken on hard copy mode of data extraction, as in this being in
Kampala online becomes an easier and cost effective method with a target of up to 200
respondents.

SELECTING THE SAMPLE SIZE

Here the sample size of 200 people shall be considered as the respondents
Probability sampling is where the probability of each person or thing being part of the sample is
known. Non-probability sampling is where it is not.

Probability Sampling
The best sampling, I have used and chosen is the probability sampling as the smallest niche
that’s the traders dealing in both merchandise and the service offers, this depicts the need to get
the real data to portray the results to suit the research base on opening a new business factors
being explored.

In simple random sampling, every member of the population has an equal chance of being
chosen to represent the whole population but due to internet constraints and travelling distance in
collecting hard copy data, it’s been zeroed that online data methods of sampling may be the best
at work here than any other method worth the but the drawback is that the sample may not be
genuinely representative. Small but important sub-sections of the population may not be included

Cluster sampling is designed to address problems of a widespread niche on looking for the
factors being varied in relation to opening a new business against the geographical population.
Random sampling from a large population is likely to lead to high costs of access. This can be

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overcome by dividing the population into clusters, selecting only two or three clusters, and
sampling from within those. For example, merchant traders and the service providers.

Advantages of using the online sample method of data collection

Can be developed in less time (compared to other data-collection methods)
Cost-effective, but cost depends on survey mode
Can be administered remotely via online, mobile devices, mail, email, kiosk, or telephone.
Conducted remotely can reduce or prevent geographical dependence
Capable of collecting data from a large number of respondents
Numerous questions can be asked about a subject, giving extensive flexibility in data analysis
With survey software, advanced statistical techniques can be utilized to 36nalyse survey data to
determine validity, reliability, and statistical significance, including the ability to 36nalyse
multiple variables
A broad range of data can be collected (e.g., attitudes, opinion and the type of business or
services offered).
Standardized surveys are relatively free from several types of errors

Disadvantages
The reliability of survey data may depend on the following factors:
Respondents may not feel encouraged to provide accurate, honest answers
Respondents may not feel comfortable providing answers that present themselves in a
unfavourable manner.
Respondents may not be fully aware of their reasons for any given answer because of lack of
memory on the subject, or even boredom.
Surveys with closed-ended questions may have a lower validity rate than other question types.

DATA COLLECTION TECHNIQUES:

Online Questionnaire will be used to drain the data needed will used as the primary method to
extract data. Secondary data will be extracted with the help of books, journals, websites and
blogs as to add on the limited information to suit the research project purposes.

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Primary data is gathered by the method of online data retrieval which can’t necessarily be
classified as first-hand information but the timing and the stage of collection will depict the
explanation as to how the data is used later for the analysis part to suit the requirement of the
topic as the project demands.
All the questionnaires filled online would be categorized under first hand or primary data but still
it seems doesn’t define or provide room for the claim as its more of secondary data other than the
hard copy method of retrieving information from the respondents.

Secondary data is published by someone else and here we focus on the websites, previous
researches conducted on the topic be it directly or indirectly related but is worth the subject
claim usually a public body or company, although it may also consist of archive material such as
historical records, journals , books, videos, magazines, articles , blogs, references and using such
data needs to generate new and original insights into it as for the case of studying the explorative
factors for the case study of Uganda and Kampala city in particular.

In this paper we have a focus and to choose to use primary or secondary data for their studies.
Both have their advantages and disadvantages, and most researchers will use a combination of
the two as both are of aid in one way or the other

Possible Problems
There are a number of criticisms that can be made of focus groups. These include: Concerns that
people may not feel comfortable airing their views in public. This may be made worse both if
they do not know the other participants and, paradoxically, if they do.

For example, if one participant is senior to another in the same organisation, the more junior
person may feel unable to express different views, but greater trust between participants usually
leads to more openness.

However, these concerns can be overcome by good facilitation at the event, including careful
design and outline of the topics to be covered, together with triangulation of your research using
other techniques and research methods.

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DESIGNING THE QUESTIONNAIRE.

The objective based method shall be used to design a more factor favoring and topic oriented
questionnaire without limited or specific questionnaire type as all the questionnaire norms and
types applies and it will all be an online format with up to around 21 questions to be filled by
respondents within the sample of 200 as the target but turn up online has been a little low with
target not be met only 175 respondents data was retrieved with the following types of questions
applied to draw data required.
QUESTIONS RELATED TO RETRIEVING DAT A FROM THE RESPONDENTS:

Rating scale questions

Respondents replies are based on a given dimension. Two frequently used types of rating scale
questions are Likert-type scales and semantic differential scales in this research project.

When using a rating scale, I want to use the balanced scale method. A balanced scale gives the
respondent an equal number of positive and negative choices, with each point holding the same
amount of weight. Balanced scales allow respondents who have no strong feelings about the
question to select a neutral response, instead of forcing them to choose a response that does not
match their feelings. For example In a scale 5, how do you rate electricity supply in the city?.

Semantic differential.
In a semantic differential scale, each end of the scale marked is with different or opposing
statements.

Multiple choice questions

Multiple choice questions ask the respondent to choose between two or more answer options.
Questions can be as simple as “yes/no” or can give a choice of multiple answers.

Rank order questions

Rank order questions require the respondent to choose among a set of alternatives.
Paired comparisons Respondents must choose between two alternatives.

Forced preference rank order Respondents must choose among several alternatives.
The forced-preference ranking approach requires sequential ranking from high to low until all
factors are ranked.Dichotomous questions
Respondents must choose between two alternatives.

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Does not allow for ambiguous answers

Open-ended questions
Open-ended questions ask respondents to supply their own answer. No pre-defined answers are
given, so respondents are free to write what they want.
Addresses the issue of “why”

Limitations
Can be time consuming for respondents
Can be difficult to compile and analyse results
Asking more than one question at once can confuse results
Asking leading questions can make results less reliable.

SPSS AND ITS RELEVANCE IN THE STUDY.

SPSS (Statistical package for the social sciences) is the set of software programs that are
combined together in a single package. The basic application of this program is to analyze
scientific data related with the social science. This data can be used for market research, surveys,
data mining, etc.

With the help of the obtained statistical information, researchers can easily understand the
demand for a product in the market, and can change their strategy accordingly. Basically, SPSS
first store and organize the provided data, then it compiles the data set to produce suitable output.
SPSS is designed in such a way that it can handle a large set of variable data formats.

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How SPSS Helped in this Research & Data Analysis Programs:

SPSS is revolutionary software mainly used by research scientists which help them process
critical data in simple steps. Working on data is a complex and time consuming process, but this
software can easily handle and operate information with the help of some techniques. These
techniques are used to analyze, transform, and produce a characteristic pattern between different
data variables. In addition to it, the output can be obtained through graphical representation so that
a user can easily understand the result.

Data Transformation: This technique is used to convert the format of the data. After changing the
data type, it integrates same type of data in one place and it becomes easy to manage it. You can
insert the different kind of data into SPSS and it will change its structure as per the system
specification and requirement. It means that even if you change the operating system, SPSS can
still work on old data.
.

FREQUENCY TEST APPLIED.

The frequency test has been applied after all the data from SPSS has been coded and drawn to
suit the topic of discussion, its advantageous with the graphical and self-descriptive tendencies as
following.

 Easy descriptive
 Tables
 Graphs
 Easy to interpret the data
 Easy results retrieval from the data coded

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 ANALYSIS FROM EACH QUESTION ASKED CUM RESPONSE:

Qn1. What is your gender?

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 147 84.0 84.0 84.0

Female 21 12.0 12.0 96.0

prefer not to say 7 4.0 4.0 100.0

Total 175 100.0 100.0

Fig.1

fig.2

Out of 175 respondents, 147 are male, 21 females and 7 are in the category of prefer not to say
which brings the following cases about women interpretation in taking up first hand
opportunities in business.

 Many of the opportunities are tapped by male entrepreneurs who love risk taking while
women are marginalized on trade, have self-doubt, sacred to take risks, and less assertive
in the fairground of tapping opportunities for which Uganda is not exceptional.

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Qn2. Does the business type have an influence on the starting process?

Does the business type have an influence on the start process?

Cumulative
Frequency Percent Valid Percent Percent

Yes 136 77.7 77.7 77.7

No 16 9.1 9.1 86.9

may be 23 13.1 13.1 100.0

Total 175 100.0 100.0

Fig3.

fig4.
136 respondents think the type of business has a direct impact on the starting process as some
business have complex grounds to set up other than others in Uganda for example a bar set can
be a little easier to set up other a medical pharmacy. 16 say no and up to 23 are not sure about it
all.

Caution should be taken that in Uganda, to start a business one needs to consider factor analysis
cum type variables.

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Qn3. How important does the business plan process play in the starting process?

how important does the business plan effect play in the start of the process?

Cumulative
Frequency Percent Valid Percent Percent

Valid very important 113 64.6 64.6 64.6

Important 37 21.1 21.1 85.7

None 16 9.1 9.1 94.9

less important 9 5.1 5.1 100.0

Total 175 100.0 100.0

Fig7.

Fig8.
This has generated results of 113 for the very important rank as it makes the activities and
project report in summary and easy to follow up hence easy to effect the process than without it.
39 say it’s important while 19 are on the lower rank with 9 on the relatively lowest without any
effect felt of business plan on the starting process.

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Qn4. In the start of the business, do you need a business finance loan or credit from recognized
institution?

in the start , do you need a business finance loan from a recognized

institution?

Cumulative
Frequency Percent Valid Percent Percent

Valid 1 .6 .6 .6

Yes 95 54.3 54.3 54.9

No 41 23.4 23.4 78.3

Fig9.
neutral 38 21.7 21.7 100.0

Total 175 100.0 100.0

need for finance credit responses.

100
80
60
need for finance credit
40 responses.
20
0
yes no neutral

95 respondents out of 175 say there is highly demand for finance credit from a recognized
institution while 40 are on the no side probably these are the self-funded entrepreneurs and do
not need any loans for the start and 38 say they do not have any idea, may be rooting for finance
credit or self-funding.

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Qn5. How long does the documentation process take?

how long does the documentation and submission process take?

Cumulative
Frequency Percent Valid Percent Percent

Valid 1 week 84 48.0 48.0 48.0

2 weeks 42 24.0 24.0 72.0

3 weeks 19 10.9 10.9 82.9

4 weeks 18 10.3 10.3 93.1

others 12 6.9 6.9 100.0

Total 175 100.0 100.0

Fig13.

fig14.

In the ease of doing business according to the world bank rankings, documentation and
submission of documents is one of the biggest contributors to the ranks of all countries that have
performed well in the economic rankings. Here 84 respondents say it takes 1 week to document,
42 on the 2 weeks and 19, 18 and 12 respectively for 3 weeks, 4 weeks and others.

The shorter the period involved in documentation the better the rank standings which is still in
the palm of Uganda.

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Qn6. Is there facilitation or subsidy given by the government to new startups?

is there any facilitation or subsidy give to new starters by government?

Cumulative
Frequency Percent Valid Percent Percent

Valid yes 97 55.4 55.4 55.4

no 44 25.1 25.1 80.6

not sure 34 19.4 19.4 100.0

Total 175 100.0 100.0

Fig19.

fig20.
The government is always supportive and gives subsidies especially as a program to improve on
the trade options of the country in relation to bringing up the smallest scale industries in
facilitation through tax breaks and offering subsidies like no duty on machine purchases from
other countries to facilitate the trade options.

There around 175 respondents of which 97 opted for yes which they might have received the
benefits from the government while 44 could not have received any and then opted for the no
while the rest were not sure if the facilitation exists or not.

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Qn7. In a scale of 5, how do you rate power and electricity demand in the new venture start up?

in a scale of 5, how do you rate power and electricity demand in the start
of the business?

Cumulative
Frequency Percent Valid Percent Percent

Valid 5 28 16.0 16.0 16.0

4 64 36.6 36.6 52.6

3 48 27.4 27.4 80.0

2 20 11.4 11.4 91.4

Fig23.
1 15 8.6 8.6 100.0

Total 175 100.0 100.0

fig24.

Electricity supply in the city is still rock bottom as most ratings are averagely at the 4th option,
there is no government provided source of power and this has resulted in to private power usage
and it’s not good enough for foreign direct investment sourcing.

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Qn8. What is the motivating power behind the new business?

what is the motivating [power behind the start of new business?

Cumulative
Frequency Percent Valid Percent Percent

Valid less time to start 38 21.7 21.7 21.7

Less capital requirement 39 22.3 22.3 44.0

entry freedom 36 20.6 20.6 64.6

market opportunities 29 16.6 16.6 81.1

less competition 25 14.3 14.3 95.4

Others 8 4.6 4.6 100.0

Total 175 100.0 100.0

Fig27.

fig28.

Most of the factors are all behind the motivation of the ease of business start but of all most
responded on well with less capital requirement and less time to start as globally there is only up
to 86 days of ease of starting business now in this case of up to 200 days which may not be
facilitating the process but its all good in response.

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Qn9. How do you rate the ease of conducting marketing research in the city?

how do you rate the ease of conducting marketing research in the city?

Cumulative
Frequency Percent Valid Percent Percent

Valid 5 7 4.0 4.0 4.0

4 50 28.6 28.6 32.6

3 38 21.7 21.7 54.3

2 40 22.9 22.9 77.1

1 40 22.9 22.9 100.0

Fig29.
Total 175 100.0 100.0

fig30.

Good response as it seems easier to conduct research in the market within kampalaas they
responded with the 50 number for the 4th rating while still concerns may be on the ties of 40 and
40 for the 1 and 2 ratings which portray non positive results if taken with standards of majority.

49 | P a g e
Qn10. What is the maximum capital requirement in US dollar for a proposed new venture?

what is the minimum capital requirement in US dollars estimates before the start
process?

Cumulative
Frequency Percent Valid Percent Percent

Valid 1,000-10,000 83 47.4 47.4 47.4

10,000-20,000 58 33.1 33.1 80.6

20,000-30,000 19 10.9 10.9 91.4

40,000 and above 15 8.6 8.6 100.0

Total 175 100.0 100.0

Fig35.

fig36.
Here the majority are the small scale operators with less or lower business potentials than others
as in reality most business capital requirements can be beyond 10000 dollars stipulated
response, this is just a minute factor as the investor will always decide how much he will want to
put in a particular business, if the government sets a limit, it’s to prevent the local retail trade as
its secured for the locals and the foreign investors are always labeled on to wholesale trade or
large scale base to which the capital requirements constitute to an enormous rate than even the
40,000 dollars stated.

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Qn11.what is main, of all factors favoring the business start?

Valid Security 43 24.6 24.6 24.6

employee capabilities 41 23.4 23.4 48.0

trade area 34 19.4 19.4 67.4

government laws 32 18.3 18.3 85.7

market potential and

17 9.7 9.7 95.4
competition

Others 8 4.6 4.6 100.0

Total 175 100.0 100.0

fig38.

In this we zeroed down to what exactly is the main of all factors behind the ease of doing
business and the response has gained momentum through the highest being security concern
given the context of political climate in the country not an investor will pursue to invest where
there isn’t any peace and stability in the region be it little or comprehensively. Market area and
the greatest government laws have to be revised as this are also better determinants of ease of
doing business globally and Uganda needs to bridge the gap to the smallest and attract the
foreign investments.

Qn12. Are the laws pertaining opening of new businesses different for the genders of male and
female?

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 Fig41.
Are the laws pertaining new start up opening always different for the different
genders?

Cumulative
Frequency Percent Valid Percent Percent

Valid yes always 8.4 4.5 4.5 17.5

No 2.5 2.0 2.0 6.5

i don’t know 4.4 3.9 3.9 12.2

Total 15.3 10.4 10.4

fig42.

Are the laws pertainng new strt up opening always different for the different genders ?

Series 1
5

0
yes always no I don’t know

Series 1

Despite the women low classes, the government has always devised rules and regulations in
favor of women entrepreneurs to aid and facilitate them in their start up nature, tax breaks and
extended loans and extended subsidies, on the data retrieved 49 % say yes its always as the
greatest and 30% still do not have a clue if there is a favor or not. This is always good to
facilitate better women entrepreneurship.

FINDINGS FROM THE RESEARCH WORK BASED ON THE RESULTS

PORTRAYRED

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The research has spotted out the following in the ease of doing business in the country and as
well as comparing it to the other neighboring countries too:
 The documentation process is too long and not uniform, for the country to progress in the
ease of business doing there needs to be a cut in the process of documentation and
submission.

 Insufficient and expensive hydroelectricity power yet this is key in any economy seeking
transformation, the respondents rated electricity the lowest in the ranks as of 1 and 2 out
of a scale of 5 and this is no surprise, the country has water falls rich for electricity
supply but not yet exploited.

 Gender is still an issue as most of the respondents are male in domination meaning most
registered or competent business are male dominated than the opposite sex, women still
are less assertive, fear to take risks and might not take the available opportunities due to
the inferiority feeling they have against the male population.

 Government policies like stressing on tax returns as first step in the starting of a new
business is not a good thing to portray on in demand, a new investor will look into
investing in countries that will provide a tax break in benefit other than the tax return
filling. The loose the tax return filling process, the higher the motivation it provides for
the growth and development of the new venture springing up.

 There is very slow take up in the opportunity presented in relation to new business
formulation this could be directly proportional to the current state of insecurity covered
up by the political instability and internal conflicts in the country, if it’s the number factor
determinant then the governments struggle for power always derail the opportunity based
models of bringing in the mind of new venture opportunity other than the real of startups.

 Government subsidies are not uniformly distributed among the respondents as some have
still un divided mind unto what applies to them and what doesn’t apply, for the
government to attract more foreign direct investors it needs to set up a better subsidy
program that is comprehensive and non-bias in focus for favorable environment other
than the inward focus for domestic investors it should be outward and should focus on the
external environment too.

RECOMMENDATIONS ON INDIVIDUAL RESEARCH RESULTS CUM

SUGGESTIONS

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  There should be uniformity in the opening process of the business other than being
dependent on the classified business opening processes.
 Increase and create an environment friendly and devising rules and regulations that can
facilitate foreign and national investors like tax holiday.
 Documentation process needs to be cut down with effect as the longer the process, the
lesser the interest in opening a new business be it for the local investors or foreign.
 Improved infrastructure for example Electricity needs to be availed and should cheaper
and affordable, good roads to ease transportation.
 Security being a derailing factor in any country, Uganda is not exceptional. In order for
new business to set up, peace and stability should be a priority in the setting by the
government.
 Inflation and high hard currency rate must be fixed through better devising of new
feasible monetary policies, no hurdle in the business start can ever be in the back pages
but rather bring out the best in the investment climate set up by the government.
 To facilitate women entrepreneurs, the government needs to set up and bring in new
rules, regulations and women entrepreneurial clubs and financing them in case they want
to make investment decisions.

CONCLUSSIONS:

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 Without peace and stability, it’s very difficult to indulge in opening new venture in
Uganda.
 Documentation according global standards has to be less than 86 days, if Uganda is to
compete, focus should be derived and zeroed to increasing the ease and reducing the
number of days.
 There should a comprehensive documentation of the whole process other than making it
individual from business to business.
 Facilitation by government has a huge impact on the opening process whether it be
reducing taxes or removing emphasis on tax return fillings.
 Demand for a new ventures proof of loans from recognized institutions make a little low
sense as opposed to allowing the funds invested without scrutinizing the sources, it’s
better to attract more investments than keeping them off in scrutiny.
 Investor protection should be left to the stage of business vs angel investors but the
government can step in unless there be need to settlement of disputes when arise.
 Foreign trade across boarders should allowed and certified by government as it the hottest
cake to opening and widening the markets to increase revenue for the venture and the
government via tax returns.

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QUESTIONNAIRE USED ONLINE TO EXTRACT THE NEEDED DATA.

Qn1.what is your gender?

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  Male
 Female
 Prefer not to say

Qn2. Does the business type have an influence on its starting process?

 Yes
 No
 May be

Qn3. Do you need a consent from a lawyer/attorney to kick off with process of new venture?

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

Qn4.how important does the business plan effect play in the process?

 Very important
 Important
 None
 Less important

Qn5. In the start of the business, do you need finance credit/loan from a recognized institution?

 Yes
 No
 Neutral

Qn6. Is there need for a permanent or resident director within to represent the venture?

 Yes
 No
 Neutral

Qn7. How long does the documentation and submission process take always?

 1 week
 2 weeks
 3 weeks
 4 weeks

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  Others

Qn8. What is the relevance of registration certificate in the mid process?

 Very relevant
 Relevant
 None
 Less relevant
 Irrelevant

Qn9. As a condition required, is filling tax return always mandatory and stressed in the first
stages of start?

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

Qn10. Is there facilitation or subsidy given to the new startups by the government?

 Yes
 No
 Not sure

Qn11. Always in the memorandum of association, there is protection of investors and highly
stipulated?

 Yes
 No
 No idea

Qn12. In a scale of 5, how do you rate power and electricity demand in the start of the business
process?

 5
 4
 3
 2
 1

Qn13. The government always has aid to new starters in the borrowing of credit from banks?

 Very true

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  True
 Neutral
 Not known
 False

Qn14. What is the ‘motivating power behind the start of a new venture?

 Less time to start

 Less capital requirement
 Entry freedom
 Market opportunities
 Less competition
 Others

Qn15. How do you rate the ease of conducting marketing research in the city?

 5
 4
 3
 2
 1

Qn16. Insolvency is always mandatory by the government when proposing to start a new
business in the city?

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

Qn17. Capital requirement is always mandatory by the government when proposing a new
venture and always a must?

 Yes
 No
 Depends
 Not always
 Un sure

Qn18. What is the minimum capital requirement estimate in US dollars always for an
investment?

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  1,000-10,000
 10,000-20,000
 20,000-30,000
 40,0000 and above.

Qn19. What is main of all factors before the business start?

 Security
 Employee capabilities
 Trade area
 Government laws
 Market potential and competition
 Others.

Qn20. Foreign trade across borders is always permissible, is it?

 Yes
 No
 Sometimes
 From business type

Qn21. Are the laws pertaining opening of new business different the genders of male and
female?

 Yes, always
 No
 I don’t know.

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