Business Innovations as Pathways for Small and Medium Manufacturing Enterprise Resilience in Kampala, Uganda

Abstract

This article analyzes the relationship between business innovations and the resilience of small and medium manufacturing enterprises (SMMEs) in Kampala, Uganda. Specifically, the paper examined the different forms of innovations in SMMEs, measurements of resilience amongst the SMMEs, and the relationship between the two. The paper employs a cross-sectional research design and canvassed a sample of 140 SMMEs from a population of 240 with a response rate of about 72%. Using mixed methods analysis, the findings revealed that the top four forms of business innovations relate to organizational, product, process and delivery aspects. The measurements of SMME resilience considered are financial capability, operational capability, turnover, and tax remittance. The study finds product and delivery innovations to be statistically significant predictors of SMME resilience in the sample considered. The coefficients of product innovation and delivery innovations are 0.185, and 0.54 respectively with the adjusted R-square and F statistic as 0.74 and 59.24 respectively. The study therefore recommends interventions that encourage product and delivery innovations as a means of strengthening the resilience of SMMEs.