What kind of business will outlive the pandemic?
A business survey of Ugandan enterprises, reveals that new realities requiring companies to adjust to new business models, is the prudent way to respond to the uncertainties of the Coronavirus (Covid-19). The most popular adaptation measures according to a survey examining the impact of Covid-19 on formal Small and Medium Enterprises (SMEs), is the use of digital and communication technologies plus new procurement/supply delivery channels. A socioeconomic assessment of Covid-19 by the United Nations Capital Development Fund (UNCDF), Makerere University (the College of Business and Management Sciences) and Uganda Revenue Authority (URA) conducted in April 2020 reveals that only those SMEs that have embraced new models as a priority in their operations, will thrive amidst the pandemic. The report, however, notes that so far, online channels are used by about 40 per cent of all companies. Almost as many use telephone communication to reach out to customers, receive orders and payments. This should be in addition to switching local materials where possible. Mobile door-to-door delivery is also widespread, with 27 per cent of all companies relying on this method. Digital solutions reduce transaction costs of dealing with suppliers and customers, facilitate financial transactions, and allow for data recording and analysis for multiple purposes including building the business credit profile to facilitate access to finance.
- 2 Jun, 2020
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