5.0 Micro Enterprises - What are they?: Entrepreneurship and Small Business Enterprise Growth in Uganda


Waswa Balunywa


Makerere University Business School

Kampala, Uganda

Micro Enterprises - What are they ?

Discussion of small enterprises has a definite reference to micro enterprises. What are they? Are they different from small enterprises?

There is a lot of reference to micro enterprises especially in the literature. In the Ugandan conditions, there are thousands of sole proprietorship with an annual turnover of less than Shs. 5 million (US5,000) which are also not of a continuous nature because the attrition rate for these businesses is high. These enterprises may be referred to as micro in that they are smaller and informal and depend very highly on the survival of the owner. In Kenya, enterprises which employ less than 10 people are categorised as micro enterprises (Kibera and Kibera, 1997). And in the European Union, the definition used is that of enterprises employing up to 9 people (The Netherlands, 1997). Reference to small enterprises in this paper encompasses these units.


The Makerere University Business School (MUBS) is at the centre stage of Business and Management Education in Uganda. It is the leading institution in providing business and management education at the certificate, diploma, Undergraduate and Postgraduate levels and a benchmark for other institutions both nationally and regionally. It also facilitates professional development, promotes entrepreneurship and is a leading business Management research institution in Uganda.

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