Tips to manage SMEs business cash flow

By Ambrose Gahene

Small and medium enterprises {SMEs} owners were last Thursday tipped on good cash flow management skills. This was during the Top 100 SMEs survey 2017 report, conducted by KPMG Uganda and Monitor Publications. The event that attracted various SMEs proprietors, Insurance companies, National Social Security Fund {NSSF}, Telecom Companies, Airline Operators and Financial Institutions took place at Kampala Sheraton Hotel.

According to NSSF Managing Director Richard Byarugaba, for any SMEs to succeed, a number of measures have to be put into consideration. “Many SMEs businesses fail after a short period because the owners operation costs and expenditures are higher than the revenues injected into their businesses”, he said. He advised SMEs proprietors to minimize the costs incurred during the course of running their business and increase the revenue base. “Money which comes into your business {Asset} is what matters than the money that flows out of your business {Liability}”, he pointed out. He in addition cautioned SMEs operators against the habit of borrowing from the Banks, to run their businesses, saying this subjects the business to a higher risk, when not well managed. He advised the SMEs business owners to embrace the culture of innovation in relation to their competitors in order to attract many clients. “Cash flow management innovation is very important to out-compete others”, he added.

Enterprise Uganda Chief Executive Officer Charles Ocici reiterated the need for SMEs owners to embrace the culture of saving and re-investing their money. “Good Cash flow management is founded on spending only on priorities”, he said, adding that savings generated should be invested in short term survival and long term growth of SMEs. “Savings give business ability to survive short term crisis, which is why you should develop the habit of saving”.


Uganda Investment Authority {UIA} Director for SMEs Bazil Ajel called on SMEs owners to endeavor register their businesses, if they intend to realize speedy growth. “Through registration of your businesses, you stand a chance to be availed land in the UIA Industrial parks at a free cost. In addition, you stand a chance to get regular training from UIA on various business management skills”, he said. He in addition said registered SMEs stand the chance of being assisted by UIA to get a secondary license, such as those SMEs wishing to venture into advanced business investments; such as putting up private schools. “UIA does joint ventures with multi-national and international firms. We have a one stop centre with 11 Government institutions, responsible for facilitating investors register their business. These include; Uganda Registration Services Bureau {URBS}, Uganda National Bureau of Standards {UNBS} and Uganda Revenue Authority {URA} among others”, he added.

The SMEs top 100 companies were treated to a colorful Dinner Gala, held at Hotel Africana last Friday. During the Dinner, UIA Executive director Jolly Kaguhangire reiterated the fact that registration of SMEs enables beneficiaries to receive support from UIA for SMEs engaged in mining, health and education economic ventures, to acquire secondary licenses.

Bank of Uganda deputy Governor Louis Kasekende said SMEs are crucial for boosting Uganda’s economy. “SMEs productivity contributes to Uganda’s income per capita and generates employment to both skilled and unskilled labour. If we are to expand the economy into middle income status, we must increase SMEs”, he said

The Top 100 SMEs survey was also conducted in partnership with DfCU Bank, South African Airways, Vodafone Uganda and ICEA Insurance Company among others. 

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