THE IMPACTS OF SMALL-SCALE BUSINESSES ON HOUSEHOLD WELFARE IN BULIIGO WARD, CENTRAL DIVISION, IGANGA MUNICIPALITY
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Date
2026-08-23
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BUSITEMA UNIVERSITY
Abstract
This study examined the impacts of small-scale businesses on household welfare in Buliigo ward, Central Division, Iganga Municipality. Small-scale businesses have increasingly been recognized as an important pathway to household income generation, employment creation and poverty reduction in Uganda, yet the extent to which they translate into tangible welfare improvements at the household level remains an empirical question that this study sought to answer.
The study was guided by three specific objectives: to identify the types of small-scale businesses prevalent in Buliigo ward; to determine the contribution of small-scale businesses to household welfare; and to identify the challenges limiting the flourishing of small-scale businesses in the area. A descriptive and exploratory research design combining quantitative and qualitative approaches was adopted. Simple random sampling was used to select a sample of 65 respondents drawn from 13 business settings within Buliigo trading Centre. Data were collected using questionnaires, interviews and observation, and were analyzed using the Statistical Package for Social Sciences (SPSS), with results presented in frequency and percentage tables.
The findings revealed that retail trade, salons and barbershops, tailoring, food vending, stationery and financial services (mobile money) were the dominant types of small-scale businesses in the ward. The study further established that small-scale businesses had a statistically significant positive contribution to household welfare, particularly in relation to household income, ability to meet daily needs, payment of school fees, food security and asset accumulation, leading to the rejection of the null hypothesis. However, the growth of these businesses was constrained by limited access to credit and capital, high taxes and licensing fees, stiff market competition, poor infrastructure, and inadequate business management skills.
The study concludes that small-scale businesses are a vital, though constrained, source of household welfare improvement in Buliigo ward. It recommends that local government and financial institutions design targeted, low-collateral credit schemes, business skills training and simplified tax regimes to strengthen small-scale enterprises, thereby amplifying their contribution to household welfare.
Key words: Small-scale businesses, household welfare, income, Buliigo ward, Iganga
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The impacts of small-scale businesses on household welfare in buliigo ward, central division, iganga municipality.
This provides basis to small scale business men in order to gain skills ansd knowledge rquired to run a small scle business.
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Kasadha,N (2026) The impacts of small-scale businesses on household welfare in buliigo ward, central division, iganga municipality