14/11/2025
Why Small Businesses Can’t Thrive Without Digital:
Lessons from the MUBS EIIC Digital Innovations for Women Enterprises
In today’s global economy, digitalization has become the heartbeat of business growth. Yet, many small businesses—especially in developing countries—continue to struggle because they have not embraced digital tools and systems. The World Bank notes that small and medium enterprises (SMEs) form about 90% of businesses worldwide, but their ability to grow and compete is increasingly determined by how well they use technology.
Oftentimes, businesses that integrate digital tools such as mobile payments, online marketing, and e-commerce platforms perform significantly better than those that remain offline. These businesses record higher productivity, more sales, and faster recovery after disruptions. However, fewer than 10% of micro-businesses owned by women in Uganda use digital tools regularly. Many owners say they ‘don’t need’ technology, yet evidence shows those who adopt digital solutions are more likely to expand and sustain their businesses.
In Uganda, small enterprises face real challenges in going digital. Limited internet access, high data costs, lack of technical skills, and fear of cyber risks all play a role. Another major barrier is mindset, as some entrepreneurs still believe digitalization is only for large companies or urban businesses. In reality, even small local enterprises can benefit from digital tools for record-keeping, customer communication, and mobile transactions.
What we do as MUBS EIIC:
The Makerere University Business School Entrepreneurship, Innovation and Incubation Centre (MUBS EIIC) conducted a strategic onboarding and outreach exercise aimed at empowering young women in employment across selected districts in the Eastern region. The initiative was designed to nurture entrepreneurial thinking, enhance business management capabilities, and expand economic inclusion for women through digital channels
The exercise reached young women in the districts of Mbale, Tororo, Namisindwa, Bududa, Lwakhakha, Kapchorwa, Kween, Sironko, and Busia, where awareness sessions, engagement forums, and introductory training were carried out. A total of 1,079 young women were successfully onboarded into the entrepreneurship and innovation Program.
We believe that small businesses can no longer survive or grow without digitalization. Adopting even simple digital tools makes a big difference.
A WhatsApp Business account helps connect to customers. Mobile money improves payment convenience, while social media can attract new clients affordably. Digital adoption is not about replacing traditional business—it’s about expanding opportunity, visibility, and efficiency
Conclusion
From the MUBS Entrepreneurship, Innovation and Incubation Centre perspective, one of the most powerful lessons from our work with small businesses-especially small women run Enterprises is that digitalization is no longer an option but a lifeline.
Digital tools and skills enable women entrepreneurs to reach new markets, stream line operations and compete effectively in a technology driven world. Many women run enterprises face challenges of limited visibility, access to finance and constrained mobility. Through digitalization these barriers can be broken-helping women to market their products online, receiving digital payments and connecting with a wider customer networks.
At MUBS EIIC we believe that empowering women with digital skills is empowering communities.
Intervention Areas
•Inclusively skilling 9,400 young people women in basic, intermediate and advanced digital skills and linking 6,300 to work opportunities provided directly in the Digital Economy
•Increasing access of women owned & women led businesses to affordable and relevant finance, markets for their products and services, and improved operational efficiencies
We extend our sincere appreciation to our implementing Partners Outbox Uganda Limited and the Mastercard Foundation for coming on board to make this vision possible. Your partnership continues to drive impact by ensuring that young women entrepreneurs across the country are equipped to thrive in the digital economy.