The problems experienced by traders in Uganda

12 problems experienced by traders in Uganda

  • They lack adequate capital to expand their businesses.
  • They suffer from limited market for their products due to poverty amongst the population.

12 problems experienced by traders in Uganda
  • Lack of business management skills amongst some traders affects their operations.
  • Poor transport network especially in rural areas cause delays in the delivery of goods hence creating frequent shortages.
  • Political instabilities in some parts of the country affect traders in such areas. This is because traders are attacked and robbed of their properties and money hence limiting business activities.
  • High interest rates charged by the money lending institutions discourage traders from borrowing hence limiting their business activities.
  • Many legal formalities involved before starting business activities for instance the need for a trading license scares away some traders hence limiting their activities.
  • High risks involved in business activities for instance bad debts, thefty e.t.c.cause fear amongst some traders hence limiting their activities.
  • Limited room for expansion especially in urban areas affect the activities of those traders who would have wished to expand their businesses.

  • High taxes imposed on traders affect their profit margin hence scaring away traders.
  • High levels of competition amongst traders who deal in similar commodities amidst few customers tend to affect traders.
  • High rate of price fluctuations in the country may in one way or another affect the operations of traders.
  • High inflation rates in the country increases the prices of goods and services which tend to discourage the customers.
  • High demonstration effect among the citizens tends to limit market for the locally produced products.


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