Factors affecting sustainability of small and medium enterprises in Kampala. a case of restaurants in Wandegeya Market

Abstract

The purpose of the study was to examine the factors, challenges and strategies for enhancing sustainability of restaurants. Specifically, the study was guided by three specific objectives that are to: examine the factors that affect sustainability of restaurants, the challenges constraining sustainability of restaurants and suggest the strategies to enhance sustainability of restaurants in Wandegeya, Uganda. As such, a qualitative approach was employed to address the research objectives and as such, qualitative data from 40 entrepreneurs operating restaurants in Wandegeya was collected using an interview and analyzed using thematic content techniques. Study results present economic factors such as bad debtors, inflation in food commodity prices, accumulation of so many loans, poor financial management, constant inflation and offering credit services to maintain customers; social factors such as reputation and relationships, employee management, not being friendly, frequent changing of workers; political factors that include; political neutrality, regulatory compliance, publicly supporting political parties, and dishonesty among leaders’ and environmental such as waste management, use of energy saving stoves, and weather conditions that affect sustainability of restaurants in Wandegeya market. Regarding the challenges, the study found out financial constraints, the absence of legal contracts, high taxes and displacement by landlords limiting the ability of restaurant operators to undertake sustainability practices. Based on the above challenges, it is recommended that restaurant owners should establish customer and community relations, undertake operational improvements and actions that protect the environmental and proper financial management as strategic pathways for improving sustainability of restaurants in Wandegeya.