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Table of Contents
EXECUTIVE SUMMARY....................................................................................................................................................3
1. INTRODUCTION..............................................................................................................................................................7
1.1. ASTOR FINANCE PLC: PRESENT OPERATIONS AND NEEDS .............................................................................................7
1.2. CDE INVOLVEMENT IN THE FINANCING OF THE SURVEY...............................................................................................7
1.3. THE LEAD UP TO THE SURVEY, MARKET CONSULTATION AND CHOICE OF CONSULTING FIRM .....................................7
1.4. SURVEY OBJECTIVES AND KEY RESEARCH QUESTIONS ................................................................................................8
2. SURVEY METHODOLOGY ...........................................................................................................................................9
2.1. CHOICE OF METHODOLOGY...........................................................................................................................................9
2.2. SURVEY QUESTIONNAIRES ............................................................................................................................................9
2.3. TRAINING OF RESEARCH ASSISTANTS ...........................................................................................................................9
2.4. SAMPLING AND SCOPE OF SURVEY ..............................................................................................................................10
2.5. SURVEY SCHEDULE AND FIELDWORK PLAN ................................................................................................................10
2.6. PROCESSING OF DATA – CODING, DATA ENTRY AND ANALYSIS .................................................................................11
3. FINDINGS ....................................................................................................................................................................12
3.1. RESPONDENTS .............................................................................................................................................................12
3.1.1 Gender of Respondents...................................................................................................................................12
3.1.2 Age of Respondents ........................................................................................................................................12
3.1.3 Have you ever obtained an item through micro leasing?...............................................................................13
3.1.4 Main source of income ...................................................................................................................................13
3.1.5 Type of Business Operated .............................................................................................................................14
3.1.6 Plans to make use of micro-asset leasing .......................................................................................................15
3.1.7. Value of asset one wants to lease.....................................................................................................................16
3.1.8 Initial payment on micro asset .......................................................................................................................17
3.1.9 Frequency of payments...................................................................................................................................18
3.1.10 Categories of equipment business people are interested................................................................................18
3.1.11 Reasons given for preferred items/equipment..................................................................................................19
3.2 BUSINESS CULTURE .............................................................................................................................................20
3.4 GENERAL COMMENTS ..........................................................................................................................................26
3.5. VIEWS FROM OTHER MICRO FINANCIAL INSTITUTIONS AND BUSINESS ASSOCIATIONS .................................................27
4.0 CONCLUDING STATEMENTS AND RECOMMENDATIONS.........................................................................31
APPENDIX A: TERMS OF REFERENCE FOR THE ASSIGNMENT ........................................................................33
APPENDIX B: SURVEY QUESTIONNAIRES................................................................................................................35
APPENDIX C: INTERVIEWER INTRODUCTION LETTER ......................................................................................39
APPENDIX D: LIST OF RESPONDENTS AND RESPONDENT INSTITUTIONS....................................................40
APPENDIX E: LIST OF DOCUMENTS REVIEWED....................................................................................................41
APPENDIX F: FIELD SURVEY GUIDELINES FOR RESEARCH ASSISTANTS ....................................................42
APPENDIX G: GENERAL DESCRIPTION OF EQUIPMENT ....................................................................................43

2
Executive Summary

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1. Introduction

1.1. Astor Finance plc : Present Operations and Needs

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2. Survey Methodology

2.1. Choice of Methodology

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2.4. Sampling and Scope of Survey

The survey targeted 200 people in the general public mainly involved in the operation of small
and micro businesses. It covered such groups of people as market vendors, tailors, motor
garage owners, restaurants, retail shops, various types of workshops, e.t.c. The sample was
randomly drawn from the districts of Mukono, Jinja, Wakiso, Kampala, Masaka and Luweero.
According to the Uganda Bureau of Statistics, A Report on the Uganda Business Register,
2003, the selected districts had a high concentration of small business operations. Findings
from the selected districts and locations would be representative of the national picture in terms
of micro- asset needs of small and medium enterprises (SMEs). Due to time limitation and
limited resources, the whole country could not be covered in the survey.

Owing to the diversity of the target respondents, sampling techniques applied were a
combination of systematic random sampling and judgmental technique. )
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Entebbe Town/Abayita
2
Bukoto, Ntinda, Banda, Nakawa
3
Nsambya, Makindye, Gaba, Kibuli
4
Kamwokya, Downtown Kampala (Central Business District)
5
Nakulabye, Nateete, Kasubi

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Kawempe, Bwaise, Makerere, Wandegeya

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3. Findings

3.1. Respondents
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3.1.1 Gender of Respondents

Gende r of Re sponde nts

n=200

60
50 50
50
40
Percent

30
20
10
0
Male Female

3.1.2 Age of Respondents

Age of Re s ponde nts

n=200

38
40 34.5
35
30 24.5
25
Percent

20
15
10
3
5
0
18-30 years 31-40 years 41-50 years Over 50 years

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Details of specific locations visited during the survey appear in appendix vi

12
 3.1.3 Have you ever obtained an item through micro leasing?

Have you e ve r obtaine d an equipm e nt or item through Micro

Le as ing Arrange m ent? n=200

90 84.5

80
70
60
Percent

50
40
30
20 15.5

10
0
Yes No

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3.1.4 Main source of income

Main source of income

Activity Frequency Percent
Retailing 45 22.5
Service provision 42 21
Food service 36 18
Hair dressing 14 7
Metal fabrication 7 3.5
Farming 6 3
Hardware dealership 6 3
Teaching 6 3
Retirement benefits 5 2.5
Accommodation 4 2
Carpentry 4 2
Clothes dealership 3 1.5
Grain milling 3 1.5
Photography 3 1.5
Tailoring 3 1.5
Timber processing 3 1.5

13
 Main source of income
Activity Frequency Percent
Wholesaling 3 1.5
Cement dealership 2 1
Brick making 1 0.5
Charcoal dealership 1 0.5
Construction 1 0.5
Designing 1 0.5
Repair 1 0.5
Total 200 100

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3.1.5 Type of Business Operated

Type of business operated

Business kind Frequency Percent
Retail shop 42 21
Workshop 22 11
Restaurant 21 10.5
Saloon 16 8
Hardware shop 9 4.5
Market stall 7 3.5
Video library 7 3.5
Butchery 5 2.5
Phone booth 5 2.5
Secretarial bureau 5 2.5
Wholesale shop 5 2.5
Lodging 4 2
School 4 2
Taxi service 4 2
Confectionery 3 1.5
Flour mill 3 1.5
Garage 3 1.5
Laundry services 3 1.5
Photo studio 3 1.5
Training centre 3 1.5
Beauty shop 2 1
Carpentry shop 2 1
Catering services 2 1
Drug shop 2 1
Entertainment centre 2 1
Professional services 2 1

14
 Type of business operated
Business kind Frequency Percent
Recording studio 2 1
Repair services 2 1
Timber store 2 1
Bridal centre 1 0.5
Charcoal stall 1 0.5
Cleaning services 1 0.5
Clinic 1 0.5
Communication centre 1 0.5
Driving school 1 0.5
Event services 1 0.5
Fabric shop 1 0.5
Total 200 100

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3.1.6 Plans to make use of micro-asset leasing

If No, do you inte nd to or plan to ge t one ?

n=169

100.0
88.0
90.0
80.0
70.0
60.0
Percent

50.0
40.0
30.0
20.0 12.0
10.0
0.0
Yes No

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15
3.1.7. Value of asset one wants to lease

Statistics

What is the value in Uganda shillings of the kind of asset you would like to lease?

N Valid 179

Missing 21

Mean (Average) 2,913,240

Median 2,000,000

Mode 2,000,000

Std. Deviation 3,738,842

Range 34,830,000

Minimum 170,000

Maximum 35,000,000

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What is the value in Uganda shillings of the kind of asset you would like to
lease?
Value indicated (UgX) Frequency Valid Percent
2,000,000 30 16.8
1,000,000 20 11.2
3,000,000 20 11.2
5,000,000 19 10.6
500,000 15 8.4
600,000 8 4.5
700,000 7 3.9
2,500,000 7 3.9
400,000 6 3.4
800,000 6 3.4
10,000,000 5 2.8
300,000 4 2.2
1,500,000 4 2.2
4,000,000 4 2.2

16
 What is the value in Uganda shillings of the kind of asset you would like to
lease?
Value indicated (UgX) Frequency Valid Percent
6,000,000 4 2.2
7,000,000 3 1.7
1,200,000 2 1.1
3,500,000 2 1.1
8,000,000 2 1.1
170,000 1 0.6
900,000 1 0.6
1,300,000 1 0.6
1,600,000 1 0.6
1,700,000 1 0.6
2,800,000 1 0.6
8,500,000 1 0.6
14,000,000 1 0.6
15,000,000 1 0.6
20,000,000 1 0.6
35,000,000 1 0.6
Total 179 100

3.1.8 Initial payment on micro asset

In cas e you w ant to get into a m icro ass e t le asing

arrangem e nt, w hat initial paym e nt w ould you m ak e of its
value ? n=178

60.0
51.1
50.0

40.0
Percent

30.3
30.0

20.0
14.0

10.0 4.5

0.0
1-10% 11-20% 21-30% Other

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3.1.9 Frequency of payments

How often w ould like to m ak e paym e nts on this ass e t?

n=178

50.0 46.4
45.0
40.0
35.0
30.0
Percent

25.0
19.0
20.0 15.6
15.0
10.0 6.7 5.6
2.8 3.4
5.0 0.6
0.0
Weekly Every 2 Monthly Every 2 Every 3 Every 4 Every 5 Every 6
w eeks months months months months months

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3.1.10 Categories of equipment business people are interested

Categories of Equipment people are interested in

Total mention counts = 311

Entertainment/Hospit Agriculture/Farming
ality Health 3%
13% 1%

Construction/Wood
w ork/Metal w ork
12%

Retail trade and

Transport services
50%
9% Food processing
12%

18
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List of items or equipment interested in

Item name Mentions Item name Mentions
l Fridge/Freezers/Coolers 46 28 Digital camera 2
2 Generators 26 29 Projector 2
3 Motor vehicles 20 30 Inverters 2
4 TV Sets 10 31 Cookers 2
5 Welding machines 9 32 Washing machines 2
6 Motor cycles 8 33 Brick making machines 2
7 DVD Players 7 34 Silo 2
Furniture (Tables, Chairs, tents for
8 Photocopiers 7 35 function hiring) 2
9 Weighing scales (Heavy duty) 7 36 Video cameras 2
10 Computers 7 37 Milk cans 2
Food processors/Juice
11 extractors 6 38 Ice cream making machines 2
12 Hair driers for saloons 6 39 UPS 2
13 Blow driers for saloons 6 40 Saloon chairs 2
14 Printers 5 41 Incubators 1
Sewing machines
15 (Manual/Electric) 5 42 Blenders 1
16 Deep fryers 5 43 Micro wave cookers 1
Meat cutting machines
17 (mincers, fillets, etc) 5 44 Air conditioners 1
18 Decoders/Dishes (Satellite TV) 4 45 Photo processors 1
19 Payphones 4 46 Photo printers 1
20 Timber cutting machines 4 47 Car jack (Heavy duty) 1
Furniture (Tables, Chairs for
21 Scanners 3 48 restaurants) 1
Mobile lights (For
22 Hair clippers/Cutters 3 49 functions/events/video coverage) 1
23 Metal cutters/benders 3 50 Vacuum cleaners 1
24 Milling machines (maize) 3 51 Spraying cans 1
25 Ovens/Warmers (Electric) 3 52 Laboratory equipment 1
Furniture (Desks, Chairs for
26 schools) 3 53 Greenhouse net 1
27 Music system 2 54 Screen printers for textiles 1

3.1.11 Reasons given for preferred items/equipment

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Reasons stated for preferred assets
Indicative of no. of
Reason given mentions Percent
1 Improving capacity of my business to meet growing demand for services/goods 39 19.5
2 To improve business or offer better services 36 18.0
3 To maintain/extend shelf life for perishables like milk/fish/drinks/foods 32 16.0
4 Expanding business operations 26 13.0
5 To improve transport facilities for marketing, delivery, taxi etc 22 11.0
6 To boost income/revenue/sales 16 8.0
7 To take care of power shortage/outage (The case for generators) 10 5.0
8 Attract new customers 10 5.0
9 Improve product quality 9 4.5
10 Diversify into other products/businesses/services/processes 8 4.0
11 To entertain guests (TV, Decoders, Music systems for restaurants etc) 8 4.0
12 Replacing old and used up machines 6 3.0
13 To ease management 5 2.5
14 To improve efficiency in processing goods/services (Productivity) 5 2.5
15 To reduce on operational costs 4 2.0
16 Use of different , more modern machines with ease 3 1.5
17 Offer more employment opportunities to people 2 1.0
18 To compete favorably 1 0.5

3.2 Business Culture

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 Do you have a bank account in any financial ins titution?n=177

90
80.8
80
70
60
50
Percent

40
30
19.2
20
10
0
Yes No

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3.2.2 Do you keep books of accounts?

Do you ke e p books of Accounts ?n=178

70 64.6

60

50
40
Percent

35.4

30
20

10
0
Yes No

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 Have you lived or w ork e d in this are a for 2 or m ore ye ars ?
n=179

100
88.3
90
80
70
60
Percent

50
40
30
20 11.7
10
0
Yes No

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Do you have a trading lice nse or ce rtificate of incorpration?n= 179

70
62.5
60

50
37.5
Percent

40

30

20

10

0
Yes No

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 Do you have audite d accounts ?n=179

90
79.9
80
70
60
Percent

50
40
30
20.1
20
10
0
Yes No

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Do you have additional s ecurity? n=179

80
70.9
70

60

50
Percent

40
29.1
30

20

10

0
Yes No

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Do you have bank s tate m ents for the las t 6 m onths?n=175

70 65.1

60

50
Percent

40 34.9

30

20

10

0
Yes No

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Do you have a bus ines s plan? n=178

70

58.4
60

50
41.6
40
Percent

30

20

10

0
No Yes

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In e ve nt of proce e ding w ith leas e plan, do you have a pe rs on to
w itne s s contract s igning?n=176

70 64.2

60

50
Percent

40 35.8

30

20

10

0
Yes No

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Do you have s ound bus ine s s pre m ise s ? n=169

90
78.1
80
70
60
Percent

50
40
30 21.9
20
10
0
Yes No

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How els e do you e xpe ct to finance the as s et be side s its productivity?

P o o ling mo ney fro m

Village bank? savings gro ups?
7% 19%

B uying o n credit?
19%

Co ntributio n fro m
P erso nal savings?
relatives o r spo uses?
34% 21%

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Big banks that have been involved in asset leasing include DFCU, Barclays and Stanbic Bank

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4.0 Concluding Statements and Recommendations

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Appendix A: Terms of Reference for the Assignment

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34
Appendix B: Survey Questionnaires

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Uganda Business Support Consultants Limited
Market Survey on Micro Asset Leasing-April 2008
Questionnaire Number Location name
Interviewer’s Name Date of interview
I am undertaking a survey on business operations in this area with the aim of identifying areas in which small businesses
can be supported and assisted in their growth and development. Our main focus is on the aspect of Micro Asset Leasing.
Leasing – is a contract through which some uses equipment owned by someone else. The user (the lessee) pays regular
amounts to the owner (the lessor). The main objective of micro asset leasing is to enable members of the public in small
business operations to acquire productive assets. In this case the documents of title/ownership to the asset are retained by
the micro finance institution until full loan is repaid or recovered.
Background information

A1. Gender (1) Male [ ] (2) Female [ ]

A2. How old are you?

(1) 18-30 [ ] (2) 31- 40 [ ] (3) 41-50 [ ] (4) Over 51 years [ ]

A3. What is your main source of income? …………………………………………………………………………[ ]

Business Operations

A4. What kind of business do you operate? ……………………………………………………………….………[ ]

A5. Have you ever obtained an equipment or item through Micro Asset Leasing arrangement? (1) Yes [ ] (If Yes go to
A7) (2) No [ ] (If No go to A6)
A6. If No, do you intend to or plan to obtain one? (1) Yes [ ] (2) No [ ] (Proceed to A7)

A7. What is the value in Uganda Shillings of the kind of asset you would like to lease? (State range) …………………..

A8. Given the amount stated above, what proportion of this value would be willing to pay as initial payment?
(Deposit of a certain percentage of the cost of the asset) (Say if value of asset is worth 1m/=, how much would be willing
to pay as initial deposit?)

(1) 1-10% [ ] (2) 11-20% [ ] (3) 21-30% [ ] (4) Other ………………………………………………….

A9. How frequently would you like to make payments on this asset?

(1) Weekly [ ] (2) Every 2 weeks [ ] (3) Monthly [ ] (4) Every 2 months [ ] (5) Every 3 months [ ]

(6) Every 4 months [ ] (7) Every 5 months [ ] (8) Every 6 months [ ] (9) Other ………………………….

A10. There are a number of equipments or tools (items) that you either use in your business or would like to use to realize
growth and better business performance, name the kind of asset(s) or equipment(s) you would be interested in leasing?

(a) ………………………………………………………………………. [ ]

(b) ………………………………………………………………………. [ ]

(c) ………………………………………………………………………. [ ]

35
A11. Why do you prefer these kinds of assets above?

………………………………………………………………………………………………………………………………….

Business Management - Financials etc

A12. In event of leasing an asset or equipment we would like to know if you have or done the following.

(a) Bank account (Savings or Current or other with any financial institution) (1) Yes [ ] (2) No [ ]

(b) Keep books of accounts (1) Yes [ ] (2) No [ ]

(c) Lived or worked in the area for 2 years or more (1) Yes [ ] (2) No [ ]

(d) Certificate of incorporation/Business License (1) Yes [ ] (2) No [ ]

(e) Audited accounts (1) Yes [ ] (2) No [ ]

(f) Additional security (1) Yes [ ] (2) No [ ]

(g) Bank statements for the last 6 months (1) Yes [ ] (2) No [ ]

(h) A business plan (1) Yes [ ] (2) No [ ]

(i) A witness to contract signing (1) Yes [ ] (2) No [ ]

(j) Sound business premises (1) Yes [ ] (2) No [ ] (Subject to researcher’s observation)

A13. In case you leased an asset how else would do you think you would pay back or finance it besides productivity from
the asset itself?
The HOW (1) Yes (2) No
(1) Pooling money from savings groups (ROSCAs)
(2) Contribution from relatives or spouses
(3) Personal savings
(4) Buying on credit
(5) Village Bank
(6) Other – specify …………………………

General Comments
A13. In event of collaborating with a financial institution and equipment supplier on matters regarding Micro Asset
Leasing, what would be some of your expectations in this experience? ……………………………………………….

A14. We would like to know the likes or dislikes for leased micro assets especially people you know who have obtained
these kinds of assets (If any).

Likes Dislikes
1 1

2 2

3 3

4 4

5 5

36
A15. Any other comments on how Micro Asset Leasing should be managed or approached to benefit small businesses?

………………………………………………………………………………………………………………………………….

37
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38
Appendix C: Interviewer Introduction Letter

! "

1st April 2008

Dear Sir/Madam,

RE: To Whom It May Concern

This is to introduce to you…………………………………………………………………., who is

conducting a survey to determine the need for Micro Asset Leasing Services amongst small
business operators.

The survey is intended to identify possible areas for leasing and also identify the kinds of items or
equipment small business operators are interested in and if possible examine reasons as to why
they prefer them.

The above named person has been oriented in basic research ethics and courteous behavior. He
will interview voluntary respondents. Any assistance given to him will be highly appreciated.

We thank you for your assistance.

Yours sincerely,

Consultant

39
Appendix D: List of Respondents and Respondent Institutions

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40
Appendix E: List of Documents Reviewed

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41
Appendix F: Field Survey Guidelines for Research Assistants

FIELD GUIDELINES
1. Field Movement Plans – Survey Locations and Expected Quotas
Total No. of Survey Locations No. of respondents No. of
Respondents for each location Research
Assistants
Day 1 Mukono Mukono Town/Seeta 25 2
50
Jinja Jinja Municipality 25 2
Day 2 Entebbe 12 1
Nakawa Division 13 1
50 Kampala 1
Makindye Division 13 1
Kajjansi 12 1
Day 3 Kampala Central 13 1
Rubaga Division 13 1
50 Kampala 2
Kawempe Division 12 1
Wakiso TC 12 1
Day 4 Masaka Masaka/Nyendo 25 2
50
Luweero Luweero/Wobulenzi 25 2
2. Demographic Expectations per Research Assistant

Age – Must be 18 years and over

Respondent involved in operating a small business of any acceptable kind mainly, or operating a small
business with plans to expand.
Gender expectations – 50% male; 50% female ratio
Respondent – must be willing to respond (voluntary), if one is not willing when approached for an
interview, find a suitable replacement (Do not over plead to get an interview with someone)
Each assistant is expected to do 50 complete questionnaires with concrete answers covering a number
of locations as stipulated in the above plan. This means that in order to achieve this, you may have to
interview slightly over 50 people, and this also means that you will carry extra questionnaires. On top
of the 50, you may need to add an extra 10.
3. Sample
The respondents will selected randomly basing on the above criteria. This means that respondents will sampled
be using the judgmental sampling method.
4. The approach
When you approach a potential respondent, you are expected to greet them first, and then state purpose of your
visit. Before you start the interview, brief them and explain what you are doing, when they have understood
then questions can begin. Assure them that what you are doing is aimed at understanding what people need to
grow their businesses. Tell them that what they tell you will be treated with confidence.
5. General Notes
Ensure that you write down survey location, interviewers name, date of interview
Go to survey locations as instructed
Take some general notes about other issues that may arise during the investigation plus
challenges faced in general terms in the exercise.
Ensure that you fill in the Time Sheet provided by the Supervisor

42
Appendix G: General Description of Equipment

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