Account for weakness of private sector in Uganda.

(Note: to account for is to give reasons)

• There is a tendency of using capital intensive technique of production so as to increase output within the sector. This leads to limited employment prospects for available labour force. i.e. unemployment results
• The sector tends to be monopolistic in nature, specializing in one or a few production activities limiting people’s freedom of choice.
• It does not promote the country’s interests as individuals desires/aspiration tend to dominate at the cost of national interest
• The private sector in Uganda, often concentrate on small scale production activities. This does not enable it generate economies of scale
• The high degree of ignorance among the people also hinders the desired activities or targets of the private sector in the country
• The sector is faced with unpredictable political polies by the government, where there is the threat and fear of nationalization programs by the state
• Private sector activities are mostly located in urban areas. This leads to rural urban migration with its associated problems like increase in crimes rate, congestions and poor hygiene.
• The sector leads to underutilization of domestic resource potential, due to small capital not all resources in the country are utilized
• The private sector fear risks involved in business undertaking.
• Private sector leads to income inequalities since few people are engaged in productive activities.
• Capital outflow/profit repatriation occurs in Uganda since private sector is dominated by foreign ownership mostly Asians.
• The private sector in Uganda is usually profit motivated. This acts against the aspiration of the consumers.
• The private sector in Uganda engages rudimentary and outdated technology that limits the scale of output.