Private sector, Govt unveil draft of Business Development Services standards

Kampala, Uganda | THE INDEPENDENT | Private sector stakeholders, led by the Private Sector Foundation Uganda (PSFU), in collaboration with the government and the African Management Institute (AMI), have introduced pioneering standards for Business Development Services (BDS) providers in Uganda.

The standards represent a first for Uganda and the entire East African region, with the objective of elevating the quality of services offered by BDS providers and addressing the persistently high rate of business failures within the country.

Statistics reveal that an alarming 70 percent of business startups in Uganda experience failure within the initial 3 to 5 years of operation, primarily attributed to inadequate management practices. Of the two draft standards, the first specifies that BDS services should exclusively be provided by seasoned professionals in the field, without setting forth any specific academic qualifications.

The determination of experience levels will be overseen by the Uganda National Bureau of Standards (UNBS) during the standards’ official gazetting process. Additionally, BDS providers must comply with Ugandan legal regulations. The second standard centers around the quality of work delivered by BDS providers. It mandates that providers must diligently oversee the entirety of their service processes until tangible outcomes are achieved—an aspect often overlooked by many BDS providers.

Johnson Abitekaniza, the Commissioner for Business Development and Quality Assurance at the Ministry of Trade and Cooperatives emphasized the pivotal role BDS plays in Uganda’s business landscape, regardless of enterprise scale. These standards are intended to guide the existing BDS framework established by the government, guaranteeing elevated service quality across all levels.

Abitekaniza noted that these standards will not only bolster the longevity of various government initiatives, such as the Parish Development Model, Emyooga, and Operation Wealth Creation but will also be integrated into numerous NGO programs. This integration underscores the essential role of BDS in these initiatives from their inception. The Commissioner articulated the notion that these standards can serve as a foundation for sustained viability, urging an early focus on sustainability within the first year of operation rather than waiting until later stages.

Incorporation of the standards into the operations of Ministries, Departments, and Agencies (MDAs) aims to provide robust support for startups, innovations, and other ventures. These elements will be amalgamated into the forthcoming BDS policy currently under development.

Integral to the standards is an evaluation and profiling process for BDS providers. This endeavor aims to equip providers with the necessary tools and establish an extensive database, rendering costly consultancy services obsolete.

Francis Kisirinya, Chief Membership Officer of the Private Sector Foundation – Uganda, encourages prompt registration of BDS providers with relevant authorities to facilitate participation in upcoming training opportunities. The enforcement mechanism for these guidelines awaits certification and gazetting by the Uganda National Bureau of Standards.

John Walugembe, CEO of the Federation of Small and Medium Enterprises, commends the timely nature of these standards, particularly for Micro, Small, and Medium Enterprises (MSMEs). These standards are expected to mitigate disparities within the sector.

These standards are the result of the “Enhancing Lead Firm Structure (LFS) for Youth Employment” project, spearheaded by PSFU and funded by the MasterCard Foundation. The initiative addresses challenges in BDS quality and cost, promotes new quality standards, and offers training for providers. The African Management Institute (AMI) contributed technical expertise through collaboration with experts, government officials, and entrepreneurship support organizations to develop these standards.

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