Structures affecting business operations
Market has both formal and informal functions in entrepreneurial decisions and success of enterprises. A major reason for youth reluctance to invest in some of the economic activities mentioned was market instability. This challenge threatened entrepreneurial progress most especially in agriculture, and other primary production activities. While some youth struggled to engage in agri-enterprises and carpentry, market for their products was very low amidst high input costs. Youth dealing in crop production, horticulture, and produce business felt the pain from price fluctuations, very low prices at harvest leading to losses. The youth dealing in extractive and manufacturing activities decried competition from imported products, and products (such as bread) from Central Uganda. They operated at a very small scale, and were thus unable to access orders from big market customers such as institutions and supermarkets. Such market problems impeded the efforts of youth, hence discouraging them from investment.
We suffer from price fluctuation after harvesting; there is no available market for our maize, sesame, soya beans and beans, we give it away anyhow—at a very low price locally known as lap lap (Female Participant, Paicho subcounty).
The key informants reiterated that market constraints retarded activities of most youth ventures. Furthermore, participants explained that at times, young agri-entrepreneurs face competition from other large-scale producers and produce from neighbouring countries.
Then the other final thing is marketing. Markets are very challenging these days with the influx of produce from neighbouring countries such as Kenya and Tanzania. Youth can grow a lot of maize then prices fall. Last year maize prices dropped during second season as low as UGX 300 (USD 0.085) per kilogramme from average of UGX700 (USD 0.20). Really, you do not see anyone making money from those crops. When there is a lot of influx of maize from Kenya and Tanzania, maize here loses value. When Kenya goes out of production our prices shoot high (NGO Programme Manager).
Youth lacked access to marketing and value addition opportunities to fetch higher prices from agricultural products. These findings corroborate other studies postulating limited business networks and market linkages as challenges to youth entrepreneurship (Namatovu et al. 2012:16; Shittu 2017:96; Cramer and Richards 2011:281; Wood and Frynas 2006:260).
Dealing with these problems might have been easier with commercial and institutional infrastructures to support their entrepreneurship ambitions. However, interlocutors reported lack of extension services, information, and business incubation centres. Some areas (such as Palaro subcounty) were quite remote with poor telephone network and feeder roads, as well as limited health, education, and business facilities. Furthermore, there were very few technical and professional personnel within communities to offer technical support, guidance, mentorship, and assistance to youth in best agricultural practices and business management.