Uganda: Fred Muhumuza Urges Entrepreneurs to Rethink Costs and Understand Their Markets

Development economist Fred Muhumuza has called on Ugandan entrepreneurs to rethink their cost structures, understand their markets better, and address internal inefficiencies that hinder business growth.

Speaking during NBS Morning Breeze on Thursday, Muhumuza highlighted common weaknesses he observes across sectors and urged business owners to take greater responsibility for factors within their control.

According to Muhumuza, many challenges faced by entrepreneurs stem not from the broader economic environment but from decisions made within their own enterprises.

He emphasised that while macroeconomic factors such as interest rates affect all businesses, fundamental operational decisions are unique to each entrepreneur -- and often overlooked.

"There are things that affect all business people regardless of sector. Things like interest rates. But it isn't your business. The customer is king. Who are you targeting? That's their business," he said/

Muhumuza criticised the tendency among some business owners to blame external forces for struggles that are actually self-imposed. He cited examples of poor location choices and unnecessary operating costs.

"You find people complaining that business is very hard, but sometimes it's because of the costs you have imposed on yourself. You can't have a business in Wandegeya and you are sleeping in Kasangati," he said.

The economist also pointed out that technical inefficiencies often go unnoticed, yet they substantially undermine profitability.

In one example, he referenced a company that consistently made losses because it relied on heavy machinery when lighter, more affordable equipment would still get the job done.

"Know your business and deal with the technical issues. There is a business I know that was making losses because they were using heavy machinery, and yet they would still get the work done by lighter machinery," he said.

Muhumuza's remarks come at a time when many entrepreneurs are grappling with rising operational expenses, shifting consumer behavior, and tightening financial conditions. He encouraged businesses to critically evaluate their internal processes, adopt cost-effective practices, and stay grounded in the realities of their customer base.

Read the original article on Nile Post.