Kampala — Small businesses have been urged to prioritise diligence, focus and improved financial controls to favourably compete other than focusing on mere survival.

In the latest Association of Chartered Certified Accountants' (ACCA) report released on Tuesday, finance professionals advised small business owners to set greater targets this year and make big plans for the future.

"Small businesses need to seek opportunities as markets begin to recover, invest and explore new markets worldwide," reads the report in part.

The report indicates that as a result of globalisation, all businesses worldwide need to come up with quality international standards in new markets.

In Uganda, where SMEs account for the largest percentage of employment, more than 60 per cent of businesses collapse before their second year due to inadequate skills and accessibility to loans from commercial banks.

To build a competitive advantage, businesses need to offer competitive prices and improve quality.

The October to December Global Economic Conditions quarterly Survey report that interviewed over 1,700 financial professionals, sought to offer advice for small businesses on how to recover from the recent global economic meltdown.

The ACCA report also emphasised the need for businesses to retain key and equip key staff with relevant skills, be flexible and innovative to survive in competition.