ROLE OF SMALL SCALE BUSINESSES IN THE PROVISION OF EMPLOYMENT TO THE LABOR FORCE (A CASE STUDY OF SHAURIYAKO TRADE CENTER IN KAMPALA DISTRICT)
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ABSTRACT
This study was carried out to examine the role of small scale businesses in the provision of employment to the labor force using 25 business units in Shauriyako Trade Center In Kampala District, as a case study. Specifically, the study was aimed at identifying the different activities of the small scale businesses in which the labor force is employed, identify how the SSBs contribute to development and growth of developing economic, and identify the size of businesses that provides employment to the labor force. The study employed the survey descriptive research design. A total of 240 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that majority of the different classifications and activities of the businesses were tied shop businesses that operated at a small scale, were managed by own boss and support staffs, had their source of startup capital from own savings, and do not provide opportunities to a great number of the people since they mostly employ less than 5 people compared to the labor force available. Furthermore, the study revealed that most business owners had challenges that hindered their business operations, taxes and other regulations. Problems in the context acquisition of licenses for registration, duplication of products have been attributed to competition. This has culminated into the widening of markets, emphasizing of the Traditional Guarantee Associations as KACITA, PSF, 360 Network and USSIA so as to focus on the issues that hinder trade and business operations.. The study therefore recommend small scale businesses need to employ professionals to manage their businesses this will improve on their performance since these will establish and strengthen the internal controls as regards financial resources to reduce on mismanagement and misappropriations. It is through this that small businesses whose startup capital is based on own savings will easily access financial institutions for loans to enhance their business operations towards employment provision.
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