The Future of Smallholder Farming in Eastern Africa - Uganda ...

3. GRAIN RETAILERS
Retailers serve as intermediaries between consumers on the one hand and regional traders,
wholesalers, and producers on the other hand. The central market is devoted to retailing
activities every day between 9:00 a.m. and 6:00 p.m. Grain bought from retailers is often
transported to its destination by donkeys.
About 76 percent and 24 percent of the sample retailing enterprises were owned and operated
by men and women, respectively (Annex Table 3.2). A significant proportion of the retailers
have been established since 1991 (Table 3.1). Private retailing activities were very much
limited between 1975 and 1991, when private business was actively discouraged by the
government then in power.
Source: Survey, 2002.
Table 3.1: Year of establishment
Year Number of retailers %
Before 1974 7 6.6
1975–81 22 20.8
Since 1991 77 72.6
Total 107 100.00
Retailers were also asked how they started their business. A high percentage of retailers,
about 85 percent, established their own business, while 9 percent inherited it from their
parents and relatives.
The average capital required to start the business was about birr 7,387. As for brokerage
businesses, the main sources of initial capital were internally generated funds followed by
borrowing from relatives and friends (Table 3.2). Small businessowners such as retailers
cannot access bank loans as they lack valuable assets for collateral purposes.
Table 3.2: How was the business started
Response Number %
Set it
91 85.0
up/established it
Inherited 10 9.3
Bought 1 3.7
Do not know 2 1.9
Total 107 100.0
Source: Survey, 2002.