KAMPALA: The Deputy Speaker of Parliament, Thomas Tayebwa, has called on the Uganda Registration Services Bureau (URSB) to intensify its sensitization efforts among Small and Medium Enterprises (SMEs) about the importance of understanding and utilizing insolvency frameworks to prevent total business collapse.
Tayebwa made the remarks on Thursday, April 10, 2025, while addressing stakeholders at the 8th Annual Insolvency Conference held at the Sheraton Kampala Hotel.
Organized by URSB, the conference ran under the theme “A Resilient Insolvency Regime: Balancing Financial Stability, Recovery and Investment Strategies.” It aimed to enhance the capacity of legal practitioners, policymakers, and entrepreneurs in managing business distress and promoting recovery through effective insolvency practices.
Describing the event as a timely intervention, Tayebwa commended URSB’s efforts to raise awareness amid ongoing global economic uncertainty.
“This annual gathering is a bold step toward building confidence among the business community. Global disruptions from inflation to instability in international markets may seem distant, but they have a tangible impact on Ugandan businesses connected to international systems,” he said.
Tayebwa warned that Uganda is not shielded from global economic downturns.
He highlighted that businesses reliant on international aid, such as that from USAID which provides 40 percent of global development assistance are increasingly under strain.
He urged SMEs to view insolvency not as a failure, but as an opportunity for recovery.
“In Uganda, the main barrier isn’t the law it’s the stigma. Many entrepreneurs fear being labeled as failures and cling to failing businesses. This mindset must change,” he said.
Sharing a personal experience from his time in Italy, Tayebwa recounted how insolvency laws helped him restructure and save his business after a major misunderstanding with a partner.
“Insolvency gave us a new start. That’s the message we need to spread insolvency can be a tool for rebirth,” he added.
Tayebwa further emphasized the need for URSB to target informal SMEs, many of which operate without basic business structures such as bank accounts, proper records, or succession plans.
“When the owner passes away, the business often dies too. Formalization is key to accessing legal protections,” he stressed.
Echoing this call, URSB Registrar General Mercy K. Kainobwisho noted that the Bureau has trained over 500 business leaders under a newly launched post-crisis business rescue programme.
“Our role goes beyond registration—we help businesses navigate distress and come back stronger,” she said.
Kainobwisho added that URSB supports the broader business ecosystem through services like intellectual property registration, a collateral registry system, and document verification.
“Many businesses still operate informally and remain invisible to the economy. Without formal registration, they cannot be supported or planned for,” she said.
Representing the URSB Board Chairperson, H.E. Amb. Francis Butagira, Board Member Lydia Aliwonya highlighted recent reforms to improve service delivery and ease of doing business.
“We’ve decentralized our services, enhanced non-tax revenue collection, and streamlined online registration through our ‘Chilly Easy’ mass campaign,” she said.
URSB operates under Cap 210 of the Laws of Uganda, working to facilitate private sector growth and create a stable, inclusive investment environment through business registration and regulatory services.
