| dc.description.abstract | Context: This paper discusses the funding challenges faced by start-ups and SMEs in Uganda, causing their failures, and the need to aggregate the angel investors, and venture capitalists, into the businesses in one portal. We highlight how accelerators and incubators in Uganda try to address the issues.
Objective: Investigating how startups and SMEs get capital to start or scale up their businesses and their awareness about angel investors, venture capitalists, incubators, and accelerators.
Methodology: The research method used in the study was a descriptive research design of a survey type. The study involved 50 entrepreneurs around Kampala including early startups and small and medium enterprises (SMEs). The Sampling technique was stratified random sampling and simple random sampling was used. A questionnaire was used as a research instrument. The collected data was analyzed using SPSS software.
This paper also addresses challenges in the current options for acquiring capital for example bank loans, and money from friends and family, among others. It also discusses the position of Uganda in regard to having a favorable environment for entrepreneurship.
Results: Most entrepreneurs are not aware of accelerators, incubators, angel investors and venture capitalists, insufficient capital is the most pressing problem faced by entrepreneurs, insufficient collateral and high-interest rates are the most factors limiting entrepreneurs from acquiring finances, there is a need for a possibility of obtaining finances without collateral security Conclusion: Capital is a major hindrance to the growth of start-ups and SMEs and Lack of awareness of entrepreneurs about right investors, accelerators and incubators. | en_US |
