By Lilian Ntege
Behind the colourful shop displays and lively social media pages, many entrepreneurs in Uganda are quietly carrying the heavy cost of doing business. From high taxes and rising marketing expenses to the daily struggle for capital and stable markets, running a small business today requires far more than passion. It demands discipline, careful planning and the ability to adjust quickly to changing conditions.
Across sectors, business owners say the pressure points are shifting. While rent and utilities once dominated the conversation, newer costs such as digital marketing, taxation on imported goods and working capital gaps are increasingly shaping the survival of small enterprises. For many young entrepreneurs, the dream of business ownership remains alive, but the road to sustainability is becoming steeper.
Starting out under pressure
For Bangi Natasha, who deals in both thrift and brand-new clothes, the entrepreneurial journey has been rewarding but demanding. She has run her fashion business for nearly six years, drawing early inspiration from her mother’s thrift trade and fashion programmes she followed on television.
Similarly, Gideon Sserwanga, a ladies’ shoe dealer with twelve years in the trade, traces his entry into business to family influence. Inspired by his sister’s furniture business, he chose shoes after realising furniture required far more capital than he could raise at the time.
Both entrepreneurs say their early days were defined not by profit but by survival. Natasha recalls that capital and sourcing reliable stock were her biggest hurdles.
“When I started my business, the biggest challenge I faced was capital and sourcing outfits in the market,” she says.
Sserwanga faced similar obstacles. With little capital and no social connections, suppliers were reluctant to extend credit.
“I had small capital and no social capital. People with goods did not know me, so it was difficult to get stock without paying upfront,” he explains.
Transport added further strain. Commuting daily from Nansana to town was costly, and on some days he had to walk. Rent also stretched his limited resources.
Rising costs and tax frustrations
As their businesses have grown, the pressure has evolved rather than eased. Natasha now cites digital marketing and taxation on imported products as her biggest financial burdens.
“Today the main expenses that put the most pressure on my business are media marketing bills and the high taxation on the products I ship,” she notes.
Sserwanga shares similar frustrations, particularly with the tax assessment process by the Uganda Revenue Authority (URA). He argues that valuators often overlook the realities small traders face.
“Our biggest problem is that taxes are not uniform. The people at URA who do valuation have never done business,” he says. “They count shoes pair by pair for taxation purposes without considering damaged or dead stock.”
Import logistics present another hurdle. Natasha says high shipping taxes eat directly into profits, while Sserwanga points to costly delays along the supply chain.
“You might find goods from China take three weeks to reach Mombasa, maybe a week to Nakawa bond, but getting them to the shop can take two months,” he says.
Coping through discipline
Rent remains a major concern, though both traders have devised ways to manage it. Natasha deliberately operates outside prime urban areas to keep costs manageable.
“My rent has not affected me much because I chose to run my business out of town,” she explains, adding that utilities and staff transport are also cheaper.
Sserwanga describes the rental environment as unpredictable, with landlords raising prices without warning. To cope, he sublets part of his shop space and lives far from town to cut personal expenses.
With margins tightening, daily financial discipline has become essential. Natasha saves small amounts for rent and salaries each day and maintains separate personal and business bank accounts to track cash flow clearly.
Sserwanga, however, says many businesses are now focused purely on survival.
“My business, like many others, is about survival, not growth,” he says, expressing concern about the broader policy environment.
Lessons from the frontline
After years in the trade, Natasha believes many young entrepreneurs underestimate the consistency required to stay afloat. She emphasises daily record-keeping, careful marketing and emotional resilience.
“Never be scared to face a loss in business,” she advises. “Stay calm and keep going.”
Sserwanga’s outlook is more cautious. After more than a decade in business, he believes the environment has steadily worn down optimism.
Their experiences highlight a broader truth. From taxation pressures to the growing demands of digital marketing, entrepreneurs in Uganda are being pushed to become more disciplined and strategic than ever before. The real cost of entrepreneurship is not measured only in shillings, but in the daily resilience required to keep a business running.
