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Uganda National Household Survey Findings 2009/2010
Uganda National Household Survey Report 2009/2010

Chapter 12.0: The Informal Sector

12.0 Introduction

The Informal sector covers all business activities, as specified in the International Standard Industrial Classification (ISIC Rev IV). These businesses are normally characterized by: absence of final accounts, having less than 5 employees, no fixed location, in most cases not registered and sometimes such businesses are operational for only 6 months or less. Informal sector surveys have been carried out since 1993 starting with the 1993/94 First Monitoring Survey (FMA); the 1992/93 Integrated Household Survey (IHS), the 2002/03 Uganda National Household Survey. The 2009/10 Informal sector survey is the 5th in the series of surveys.

12.1 Households Enterprises


The informal sector businesses were categorised into two i.e. household based and non-household based. The main objective of undertaking the informal sector survey was to determine the extent of informal activity in the economy undertaken at household level. It provides indicators on the extent of economic activity, numbers engaged in the informal businesses, ownership, and level of Non-Current Assets, gross output and Value Added in the informal sector as well as access to credit and market.

12.1.1 Households Operating an Enterprise

The survey findings in Table 12.1 reveal that out of the estimated 6.2 million households covered, 1.2 million (21%), had an informal business. This included those households undertaking agriculture on a commercial basis where at least 50 percent of the produce was sold. Rural-Urban variations show that the majority of the informal businesses were in the rural areas.

Table 12.1: Households with Informal Businesses

Status

Households with
no business
(‘000s)

Households with
Businesses
 (‘000s)

Total
(‘000s)

Urban

1,009

164

1,173

Rural

3,922

1,131

5,053

Uganda

4,931

1,296

6,227

Proportion

79.2

20.8

100




12.1.2 Regional Distribution of Households Businesses

Analysis of households with informal businesses by region revealed that the highest number of informal businesses were in the Central region (36%) followed by the Western Region (26%) and the Eastern Region with 24 percent. The Northern region had the least number of businesses (14%).

Figure12.1: Distribution of Households Operating Informal Businesses by Region (%)

fig12-1

12.1.3 Industry of Informal Businesses

The survey findings show that there were a total of 1.8 million informal businesses. Figure 12.2 presents the distribution of informal businesses by industry. The survey results reveal that the majority of informal businesses were in the agricultural sector (27%) followed by trade and services (24%) while mining and quarrying (1%) as well as Fishing (1%) accounted for only two percent of the total number of businesses.

Figure 12.2: Distribution of Informal Businesses by Industry (%)

fig12-2

Table 12.2 presents the distribution of household businesses by industry and region. The findings show that Agricultural businesses were dominant in both the Central and Eastern regions with 33 and 32 percent respectively. The Northern region had the majority of households undertaking informal businesses in Forestry (85%) while mining and quarrying was predominant in the Eastern region (52%). Food processing (32%) and other manufacturing (45%) businesses were most common in the Central region while hotels and restaurant businesses (38%) were more common in the Western region.

Table 12.2: Distribution of Household Businesses by Industry and Region (%)

Industry

Central

Eastern

Northern

Western

Total

Agriculture

32.6

32.0

5.4

29.9

100.0

Forestry

6.2

1.9

85.2

6.8

100.0

Fishing

7.6

47.9

0.0

44.5

100.0

Mining & Quarrying

0.0

51.9

48.1

0.0

100.0

Food Processing

32.4

22.4

27.2

18.0

100.0

Other Manufacturing

44.5

11.0

17.3

27.2

100.0

Hotels & Restaurants

34.9

23.0

4.1

38.0

100.0

Trade

38.5

24.6

10.4

26.4

100.0

Services

50.6

21.8

7.1

20.5

100.0

Uganda

35.9

23.7

14.2

26.2

100.0


 

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Copyright , Uganda Bureau of Statistics 2010