By George Aine
The use of software by medium-sized companies in Uganda is on the rise, with more firms using accounting packages in data management, the 2016 Top 100 mid-sized survey shows.
Past studies have indicated that inadequate tools to identify, assess and mitigate risk frustrate the growth of medium-sized enterprises.
However, the 2016 survey results show that 40 per cent of businesses indicated that they adopted new technology, innovative solutions, equipment and new business processes.
As far as the awareness and management of risks is concerned, the survey shows that 95 per cent of the businesses interviewed were aware of risks they are facing and have in place a process for identifying the risks to which the business is exposed and developing ways of addressing these risks.
However, KPMG audit manager Richard Walusimbi says: “The majority of businesses manage risks by transference at 92 per cent, while they see the use of information communication technology in business management as a cost rather than a benefit.”
The chief executive officer of Insurance Company of East Africa (ICEA), Mr. Jackson Muli, urges business leaders to use technology to manage risks in their businesses.
Mr. Muli says businesses need an insurance partner so that they protect their businesses they have established over time.
“Businesses should be safe, you should safe guard what you (business leaders) have put in place through insurance. Insure your businesses today and not tomorrow,” he says.
The survey also shows that tally is generally the accounting package of choice while excel is preferred for data base management.
The survey findings also indicate that only 44 per cent of businesses are currently using or would be interested in buying online services such as business software solutions for financial transactions, online accountancy and online payroll.
Corporate governance is one of the critical issues driving the development and sustainability of businesses in Uganda today. The survey reveals that most companies have two to five boards of governors.