Attachments
Executive Summary
Uganda has been recognized for its progressive refugee policies that have the potential to promote self-reliance. The country hosts a large and growing refugee population, but the funding for the protracted crisis is not keeping up with the needs. As a result, there is an increased focus on self-reliance; entrepreneurship is considered an important pathway to achieve that.
This learning brief is the result of a collective learning process, engaging actors from the humanitarian, development, entrepreneurship and innovation, government, and finance sectors.
Its purpose is to take stock of the different approaches to entrepreneurship support implemented in the refugee response and to document the learning in order to inform future programming.
Entrepreneurship refers the creation of a new, opportunity-driven business, going through four stages (idea, start-up, growth, and scaling). In the refugee context, the concept also includes necessity-driven entrepreneurship, which is more focused on earning an income to be selfreliant and meet basic needs. Entrepreneurship support was analysed according to six categories: training, business development services, access to finance, markets and linkages, digital opportunities, and an enabling environment.
There are many actors providing entrepreneurship support in Uganda’s refugee context. There is a concentration of support in Nakivale, Palabek, Rhino Camp, Imvepi, Bidibidi Refugee Settlements and in Kampala. Most actors provide some combination of training, coaching, and access to a form of finance, though the approach taken depends on the entry point, the objective of the project, or the mandate of the organisation.
The majority of actors provide introductory-level business training. There is no standard curriculum, but it often includes skills for generating and selecting a business idea, developing a business plan, and starting a business. More than half of the actors surveyed also provide financial literacy training to help entrepreneurs manage and save money.
Nearly all actors provide technical support to start or improve a business. The business development support was mainly in the form of coaching to address issues that are specific to the business. Less than half provide information on how to formalise the business, and the support provided is mainly in the form of access to information about the process and costs.
Access to finance is an important component of entrepreneurship support. Nearly half of the actors provide a small grant or loan to be able to start a business. Other actors are working to link refugees with financial services by helping refugees become credit-ready or working with financial services providers to offer appropriate services. A third of actors support entrepreneurs in participating in savings groups to foster savings habits and access small loans. Though considered important, there are fewer actors that are linking refugees to buyers and suppliers and supporting them to take advantage of digital opportunities like online marketplaces.
Actors in the refugee response identified recommendations to address key gaps in entrepreneurship support. This includes ensuring businesses are supported throughout the stages of business development to address the limitation of short project cycles and strengthening financing options available to address a missing middle of financial support for refugee entrepreneurs.
Key recommendations to move entrepreneurship support forward are to develop minimum standards for entrepreneurship support, develop simple, standardized information on business formalization, and support entrepreneurship support organisations to establish bases closer to refugee-hosting areas that can serve as hubs to stimulate context-relevant entrepreneurship.