Why do nascent ICT businesses die young?
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Date
2012-05
Authors
Mayoka Kituyi, Geoffrey
Balunywa, Waswa
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Abstract
This study sought to investigate why most nascent ICT businesses failed during their early stages in
Uganda along the constructs of the family business sustainability model. A quantitative survey
research design was adopted and used, in which a self-administered questionnaire was the main data
collection tool. Primary data were analyzed using descriptive statistics. The key factors influencing ICT
business start-up were identified as unemployment, the need to get side income, create jobs for family
members and get rich. Findings also indicate that most nascent ICT businesses failed because
proprietors employed relatives, were not available and committed to their businesses. In addition,
excessive competition from foreign products, lack of business management and entrepreneurship
skills, financial indiscipline, mistrust, poor savings culture, conflict of interest between managers and
family members and failure to pay bank loans, rent and taxes were also responsible for ICT business
failures. The study identified the most salient policy innervations for sustainable ICT businesses in
Uganda as reduced interest rates, training in ICT and entrepreneurship skills, availability of business
soft loans, government subsidies, establishment of business incubation centers and controlled inflow
of foreign ICT products.
Description
Research Paper
Keywords
ICT businesses, Family business, Small businesses, Sustainability, Uganda, Business failures, Entrepreneurial tendencies.
Citation
Mayoka,K.G.,Balunywa,W. 92012), Why do nascent ICT businesses die young?,2(5),117-127.