The Deputy Speaker of Parliament, Thomas Tayebwa, has urged the Uganda Registration Services Bureau (URSB) to intensify efforts to educate small and medium businesses (SMEs) on how to navigate financial distress through insolvency\u2014a legal mechanism that allows businesses to reorganize, settle debts, and potentially restart instead of shutting down.<\/p>\n\n\n\n
Speaking at the 8th Annual Insolvency Conference held on 10 April 2025 at the Sheraton Kampala Hotel, Tayebwa noted that many Ugandan entrepreneurs equate insolvency with failure, when, in fact, it can provide a path to recovery.<\/p>\n\n\n\n
\u201cIn Uganda, it\u2019s not the law that stops people from saving their businesses\u2014it\u2019s the fear of being called a failure,\u201d Tayebwa said. \u201cBusiness owners keep struggling in silence even when there are legal avenues available to help them rebuild.\u201d<\/p>\n\n\n\n
He shared his personal experience of nearly losing a business in Italy due to a failed partnership. Through an insolvency process, he was able to restructure, settle outstanding debts, and relaunch\u2014an experience that reshaped his understanding of business resilience.<\/p>\n\n\n\n
\u201cInsolvency gives business a new life. “That\u2019s what we should be teaching our entrepreneurs\u2014it\u2019s not the end, it\u2019s a new beginning,\u201d he said.<\/p>\n\n\n\n
This year\u2019s conference theme, \u201cA Resilient Insolvency Regime: Balancing Financial Stability, Recovery and Investment Strategies,\u201d aligned with his message that Uganda\u2019s legal frameworks are evolving to support recovery rather than punish failure.<\/p>\n\n\n\n
Tayebwa also highlighted the vulnerability of Ugandan SMEs to global shocks, such as reductions in foreign aid and disruptions to international supply chains.<\/p>\n\n\n\n
\u201cThings like global aid cuts may seem distant, but they directly impact businesses here that rely on external support,\u201d he said, adding that many SMEs are unaware of the legal tools available to help them weather such crises and safeguard jobs.<\/p>\n\n\n\n
URSB Registrar General Mercy K. Kainobwisho emphasized the Bureau\u2019s expanded role beyond company registration, highlighting its support for businesses in financial recovery. She noted that more than 500 entrepreneurs have received training under URSB\u2019s post-crisis business rescue programme.<\/p>\n\n\n\n
\u201cWe are here to guide businesses through tough times and help them emerge stronger,\u201d Kainobwisho said.<\/p>\n\n\n\n
She also outlined key services offered by URSB, including intellectual property protection and the collateral registry, which allows businesses to register assets as loan securities.<\/p>\n\n\n\n
However, Kainobwisho cautioned that informal businesses\u2014those operating without legal registration\u2014remain excluded from such support.<\/p>\n\n\n\n
\u201cIf a business isn\u2019t formally registered, it becomes invisible. We can\u2019t help what we can\u2019t see,\u201d she said.<\/p>\n\n\n\n
Tayebwa echoed the need to engage informal businesses, many of which lack basic structures such as bank accounts or succession plans.<\/p>\n\n\n\n
\u201cWhen the owner dies, the business dies with them. “We need to teach people how to formalize and plan ahead,\u201d he urged.<\/p>\n\n\n\n
Despite being the backbone of Uganda\u2019s economy, more than 80% of SMEs operate informally. Without formal records, legal protection, or continuity plans, these businesses remain fragile and vulnerable.<\/p>\n\n\n\n
Representing URSB Board Chairperson Ambassador Francis Butagira, Board Member Lydia Aliwonya outlined several reforms, including decentralizing URSB services, improving non-tax revenue collection, and promoting online registration through campaigns such as \u201cChilly Easy.\u201d<\/p>\n\n\n\n
By making services more accessible, URSB aims to encourage business formalization, boost resilience, and foster long-term growth for Uganda\u2019s entrepreneurial sector.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Deputy Speaker of Parliament, Thomas Tayebwa, has urged the Uganda Registration Services Bureau (URSB) to intensify efforts to educate small and medium businesses (SMEs) on how to navigate financial distress through insolvency\u2014a legal mechanism that allows businesses to reorganize, settle debts, and potentially restart instead of shutting down. Speaking at the 8th Annual Insolvency […]<\/p>\n","protected":false},"author":1,"featured_media":4054,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-4053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy"],"yoast_head":"\n