10 Best Cities And Towns Uganda To Start Business With Little Capital And Earn A Huge Profits

Uganda is a landlocked East African country with a population of about 44 million people. Agriculture is the country's primary economic driver, but there has been a substantial shift toward other industries including as tourism, manufacturing, and service delivery.

Uganda is a good area for small-scale business ventures. The country's business environment is booming, and its economy is expanding at a rapid pace. Furthermore, Uganda has a number of cities and towns that are ideal for business startups.

Starting a business in Uganda can be a profitable venture, especially if you choose the right location and business idea.

In this post, we will look at the eight best cities and towns in Uganda to start a business with little capital and make a lot of money.

10 Best Cities And Towns Uganda To Start Business With Little Capital And Earn A Huge Profits

Starting a business in Uganda can be a lucrative venture if you choose the right location and business idea.

Here are the eight best cities and towns in Uganda to start a business with little capital and earn huge profits.

Kampala

Uganda's capital city, Kampala, is a vibrant commercial hub with a rapidly rising economy. You can start a small business in Kampala, such as a retail store or a restaurant, that will cater to the city's rising middle class. Another profitable business idea is to start an IT company that provides services such as web design, software development, food and beverage enterprises, retail stores, real estate and tourism-related businesses, and digital marketing.

Arua

Arua is a town in northwestern Uganda, roughly 480 kilometers from Kampala. Because of its strategic location between the borders of South Sudan and the Democratic Republic of the Congo, the town is well-known.

In Arua, you can start a transport and logistics firm that provides transportation and delivery services to local businesses. You might also try opening a guest home or motel that caters to border travelers and traders.

Mbale

Mbale is located in Eastern Uganda and is a major transportation hub connecting Uganda to Kenya. The city has a vibrant business community, with many entrepreneurs setting up shop in the area.

With a population of over 96,000 people, Mbale is a great place to start a business due to its strategic location and large consumer base. Some of the profitable business ideas in Mbale include retail stores, food processing, and hospitality.

Gulu

Gulu is a fast-growing city located in Northern Uganda. The city is strategically located along the major highway connecting Uganda to South Sudan, which makes it a hub for trade and commerce. With a population of over 152,000 people, the city is home to a diverse group of people and cultures.

Gulu has seen rapid growth and development in recent years, with many businesses setting up shop in the area. This has created opportunities for entrepreneurs looking to start businesses in the city. Some of the profitable business ideas in Gulu include retail stores, food processing, and agribusiness.

Entebbe

Entebbe is a town on the beaches of Lake Victoria, 40 kilometers from Kampala, that was created in 1893.

Entebbe is a major tourist destination due to its international airport and the Uganda Wildlife Education Center.  It is a town that is included among the top cities and towns in Uganda for beginning a business with minimal capital and earning enormous profits.

Restaurants, cafes, hotels, and tourism-related businesses are all profitable business ideas for Entebbe. 

Mbarara

Mbarara is a town in southwestern Uganda, roughly 290 kilometers from Kampala. The town is well-known for its agricultural potential, with various farms producing dairy, meat, and commodities such as tea and coffee. Mbarara also has a number of businesses, such as hospitality, retail, and real estate.

Mbale is an important transportation hub that connects Uganda and Kenya. The city has a thriving business community, with many entrepreneurs establishing themselves there. Mbale, with a population of over 96,000 people, is a great place to establish a business because of its strategic position and vast consumer base. Retail stores, food production, and accommodation are some of the profitable business ideas in Mbale.

Jinja

Jinja is located in eastern Uganda and is best known for being the source of the Nile River. The city is a hub for tourism, with many visitors coming to see the source of the Nile and engage in various water sports activities.

Jinja is also a great place to start a business due to its strategic location along major transport routes connecting Uganda to other East African countries. Some of the profitable business ideas in Jinja include tourism, hospitality, and agriculture.

Hoima

Hoima is another city and town on our list of the best cities and towns in Uganda to start a business with little capital and make a lot of money.

Hoima is notable for its oil business. Hoima is one of the best places to establish an oil and gas-related business, such as logistics, transportation, or equipment leasing.

Hospitality, agriculture, and real estate are all successful business possibilities for Hoima.

Fort Portal

Fort Portal is one of Uganda's oldest towns, having been founded in 1891. Nonetheless, it remains one of the best cities and towns in Uganda for starting a business with little capital and making a lot of money.

Fort Portal is a town in Western Uganda famous for its tourism business. Fort Portal is a good location for people/entrepreneurs to launch a tourism-related business, such as hotels, lodges, or tour businesses.

Agriculture, transportation, real estate, handcrafts, and other profitable Fort Portal business ideas are available to everybody.

Kabale

Kabale is a town located in southwestern Uganda, about 410 km from Kampala. The town is known for its scenic beauty, with several tourist attractions in the region, such as Lake Bunyonyi and Bwindi Impenetrable National Park.

You can start a tour company in Kabale, offering tours to these attractions and other nearby destinations. You can also consider starting a hospitality business, such as a guest house or restaurant, that caters to tourists and travelers.

Factors to consider when starting a business in Uganda

Before starting a business in Uganda, it's essential to consider several factors, including:

Business registration: All businesses in Uganda must be registered with the Uganda Registration Services Bureau (URSB) to operate legally. The registration process is relatively easy and affordable.

Market research: It's essential to conduct market research to determine the demand for your products or services.

Capital: Starting a business requires capital. You need to determine how much capital you need and where to get it.

Business plan: A business plan helps you define your business objectives, target market, and strategies for success.

Taxation: It's essential to understand the tax laws in Uganda and comply with them to avoid legal problems.

Top 15 Businesses With Little Capital And Earn A Huge Profits in Uganda

●        Fast Food Restaurant

●        Clothing and Fashion Business

●        Event Planning and Management

●        Photography and Videography

●        Freelance Writing and Editing

●        Online Tutoring and Education

●        Mobile Phone and Accessories Business

●        Mobile Money Transfer

●        Tourism

●        Agriculture and Farming

●        Graphic Design and Printing

●        Cleaning Services

●        Car Washing

●        Transport Business

●        Social Media Management and Marketing.

 

FAQS

What are most profitable businesses in Uganda?

The most profitable businesses in Uganda include agriculture and farming, real estate, tourism, construction, and information and communication technology. 

Which business can I start with little capital in Uganda?

You can start a small fast food joint, a clothing and fashion business, event planning and management, or a freelance writing and editing business with little capital in Uganda.

Where can I get start up capital in Uganda?

You can get start-up capital in Uganda from microfinance institutions, banks, government programs, angel investors, and crowdfunding platforms.

What business can I start with 2 million shillings in Uganda?

You can start a small fast food joint, a clothing and fashion business, or a mobile phone and accessories business with 2 million shillings in Uganda.

What can I invest in to make money in Uganda?

You can invest in real estate, or start a profitable business in Uganda to make money.

What is the main source of income in Uganda?

The main sources of income in Uganda include agriculture, tourism, manufacturing, and services.

Which sectors are most earning for Uganda?

The agriculture sector of the Ugandan economy, which accounts for nearly 40% of the country's GDP, is predominantly staffed by women laborers, particularly in product management, marketing, and crop sub-sectories.

Is Uganda a good place to start a business?

Uganda operates in a free-market environment, with a young population, open marketplaces, plentiful resources, and a growing economy that provides numerous favorable investment prospects.

What are the top economic sectors in Uganda?

Some of the top economic sectors in Uganda include agriculture, retail, tourism, hospitality, and food processing.

Is Uganda a good place to start a business?

Yes, Uganda is an excellent place to set up a business. The country boasts a thriving economy with a wide variety of industries that provide several chances for entrepreneurs.

Uganda has a favourable economic environment, with a stable political atmosphere, a growing middle class, and a big population in need of goods and services.

Furthermore, the Ugandan government has implemented policies and programs to support and promote business growth, such as tax breaks, access to finance, and simplified business registration procedures.

 

Conclusion

Uganda is a great place to start a business with little capital andearn huge profits. The country has a vibrant business community, with many cities and towns offering great opportunities for entrepreneurs. The eight cities and towns mentioned above are just some of the many places where you can start a business in Uganda. With the right business idea and strategy, you can succeed in Uganda's dynamic and growing economy.