The purpose of the study was to investigate how resource-constrained suppliers that are participating in local procurement create supply chain value. The study investigated supply chain performance by testing the relationship between entrepreneurial competences and supply chain value. Feedback from a cross-sectional survey of 294 suppliers in construction, furniture and fitting and agricultural sector was utilized to test hypothesized relationships. The study employed factor analysis and structural equation modelling (SEM) to conduct analysis. The results revealed that building value-driven supply chains in Uganda's local procurement context requires specific competences that have an integrative role. The competences that are valued in integrating local supply chain activities include; opportunity competence and commitment competence. Both innovativeness and analytical competences are not common among local entrepreneurs. Focus should be given to developing competences in identifying and developing new market opportunities, establishing and managing long term relationships with suppliers and integrating new supply chain actors.
The study investigated how small and medium enterprises (SMEs) create value in local supply chains. Specifically, the study focused on two initiators of value creation: entrepreneurial competences and supply chain trust. The authors analyse a cross-sectional survey of 294 SMEs in Uganda operating in the construction, furniture and fitting, food processing and agricultural sectors to test a number of hypotheses, using factor analysis and structural equation modelling. Results show that building value-driven supply chains requires SME owner-managers to build an optimal level of trust. Although trust is identified as a key factor in facilitating trade within local communities, different entrepreneurs' perspectives alter how SME-owner managers assess trusted partners, determining different strategies and behaviours in building trust in customer, as opposed to suppliers' relationships. In addition, findings show how operational cost is not a key value driver, indicating why SME-owners managers should instead focus on building trust.
The study employed the World Bank Enterprise survey 2013 for Uganda and quintile method to determine the relationship between firm location, International Standards Organization (ISO) certification and cash inflows of Small and Medium Enterprises (SMEs) in Uganda. The results show that ISO certification and firm location are positively and significantly related to SMEs' cash inflows. It was also realized that other factors such as using email, foreign ownership, access to finance and tax administration are not obstacles to firm's cash inflows. Our findings suggest that creating awareness among entrepreneurs about ISO certification and creating enabling environment for SMEs in Uganda to become ISO certified should be highly considered by Government of Uganda. In addition, the Government of Uganda with Kampala Capital City Authority must develop deliberate policy to enable SMEs get internet connection cheaply and faster. This will ease doing businesses and enable SMEs' cash inflows to grow.
The study sought to establish the core values which influence SME profitability in Uganda’s informal economy. By employing a qualitative approach, interviews from twenty-five respondents were conducted. Data were analyzed by coding and networks with the help of the Atlas.ti 8 tool. The study findings indicate that: whereas the accounting profession defines profitability to be return on assets (ROA), return on investment (ROI), and return on equity (ROE), entrepreneurs in Uganda’s informal economy do not understand these traditional profit measurement criteria. Instead, they understand sales and expenses. Besides, fairness, respect, responsibility, and cleanliness were established as core values that catalyze SME sales. It is important for the government through the private-sector foundation and traders’ association to continuously train these entrepreneurs about financial matters. Also, the accounting professionals through the regulatory body may establish a wing that can help these informal traders in financial matters, the way the Uganda law society is approaching to help out vulnerable people who cannot afford the services of expensive lawyers.
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