Business innovations and entrepreneurship performance in small & medium scale enterprises in Kampala City

Abstract

The role business innovations to the entrepreneurs’ activity in Kampala small scale enterprises, in regards to the improvement on the entrepreneurial spirit in Uganda, the current government of Uganda has made advancements in returning the power of commerce to the people of Uganda. It is also reported by the Ministry of Planning and Economic Development (1993) that over 80% of Uganda is manufacturing output is by small enterprises. The sector also employs up to 2.6 million people in Uganda. The researcher objectives were (i) to determine the relationship between entrepreneurship and business innovation in small medium sized companies in Kamala city (ii) To establish the degree of business innovation in small sized business (iii) to determine the level of entrepreneurship in small sized business in Kampala city. The target populations in the research were 150, while the sample size was 103. The researcher used means and ranking of both variables’ questionnaire and the findings of the research included that the majority of the respondents agreed the importance of the feasibility study and business plan, the findings of the research also indicated that getting personal independence and to making a living are twin factors that encourage entrepreneurs in Kampala city, also the findings include that business innovation is a tool that attracts customer for retaining them. The researcher concluded that there is significant relationship between business innovation and entrepreneurship performance in small and medium scale enterprises in Kampala City. Recommendations presented as follows: Continuous Product Innovation in products, service, packaging, after sales service etc. Seek Innovation Opportunities in the market in order to be profitable and Increase Entrepreneurship Education of entrepreneurs in Kampala city.